FY2021 Sustainable Urban and Annual Regional Development Report Umbrella Program (SURGE) 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) © 2021 World Bank, 1818 H Street, N.W., Washington, D.C., 20433, U.S.A. www.worldbank.org This work is a product of the staff of the World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. RIGHTS AND PERMISSIONS The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Please cite the work as follows: World Bank. 2021. The Sustainable Urban and Regional Development Umbrella Program (SURGE) Annual Report 2021. Washington,D.C. World Bank Group. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@ worldbank.org. ACKNOWLEDGMENTS This Annual Report, covering the fiscal year ending June 30, 2021, was prepared by members of the SURGE Program Management Team: Horacio Terraza, Matthijs Schuring, Macha Kemperman and Maria Camila Quintero. In addition, contributions were made by several Bank staff and consultants. PH3 Estudio was the graphic designer and Cheryl Toksoz provided editing support. PHOTO CREDITS All photos are copyright free from Pexels.com and Unsplash.com except: Page 14. John Hogg / World Bank Page 38. Curt Carnemark / World Bank Page 44. Arne Hoel / World Bank Page 45 Z. Mrdja / World Bank Page 50 Dominic Chavez / World Bank Page 57 Allison Kwesell / World Bank Page 58 Gerardo Pesantez / World Bank 2 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 3 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 00 CONTENTS 4 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) 00 CONTENTS 01. Acronyms and Abbreviations 06 02. Foreword 08 03. Executive Summary 10 04 Introduction 12 05. SURGE Umbrella Anchor Multi-Donor Trust Fund 14 06. Strengthening Urban Cadasters for Urban Governance in Peru 28. 07 Bolivia Urban Resilience Technical 34 Assistance Program 08. Strengthening Sustainable and 40 Resilient Urban Development in Serbia 09. Urban MDTF for South Africa 46 10. Summary of Progress by Pillar of Results Framework 52 11. Financial Overview 60 12. Looking ahead 64 13. Annexes 68 5 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 01 ACRONYMS AND ABBREVIATIONS 6 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) ACRONYMS AND ABBREVIATIONS 01 BRT Bus Rapid Transit CIDMS Cities Infrastructure Delivery & Management System CMU Country Management Unit COFOPRI Agency for the Formalization of Informal Property (Peru) CSP Cities Support Program DRM Disaster Risk Management EAP East Asia and Pacific ECA Europe and Central Asia EoI Expression of interest FDI Foreign Direct Investment FY21 Fiscal Year 2021 FY22 Fiscal Year 2022 GAM Greater Area Metropolitan GDP Gross Domestic Product GFDRR Global Facility for Disaster Reduction and Recovery GIF Global Infrastructure Facility GoB Government of Bolivia GPURL Urban, Disaster Risk Management, Resilience, and Land Global Practice (of the World Bank) GRID Green, Resilient Inclusive Development IFC International Finance Corporation IT Information Technology IUDF South Africa’s Integrated Urban Development Framework KTMV The Kathmandu Valley LAC Latin America and the Caribbean LADM Land Administration Domain Model LSG Local Self Governments LVC Land Value Capture M&E Monitoring and Evaluation MDTF Multi-Donor Trust Fund MEF Ministry of Economy and Finance MENA Middle East and North Africa MIVAH Ministry of Housing and Human Settlement (Costa Rica) MVCS Ministry of Housing, Construction, and Sanitation (Peru) NT National Treasury OSR Own Source Revenues PMA Program Management and Administration PNDIC National Cities Policy (Bolivia) PPP Public-Private Partnership PV Photovoltaic RAS Reimbursable Advisory Services RiST Risk Stress Tool SC South Corridor SCGE Spatial Computerized General Equilibrium SECO Swiss State Secretariat for Economic Affairs SWM Solid Waste Management SUDS Sustainable Urban Development Strategy (Serbia) SURGE Sustainable Urban & Regional Development Umbrella Program TA Technical Assistance TF Trust Fund VIDECI Vice ministry of Civil Defense (Bolivia) WB World Bank WBG World Bank Group WSS Water Supply and Sanitation 7 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 02 FOREWORD 8 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) FOREWORD 02 Sameh Wahba Global Director Urban, Disaster Risk Management, Resilience and Land Global Practice The outbreak of COVID-19 has dramatically changed people’s lives. Its impact stretches far beyond immediate health consequences as it led to massive job losses, disrupted education for 1.6 billion children, and reversed decades of progress in reducing poverty. Urban areas are the epicenters of the pandemic. In the meantime, people keep moving to cities, the climate continues to change, inequality is widespread, and During SURGE’s first year, colleagues worked violent conflict has spiked. hard to operationalize the program. It is my great pleasure to now present this first Annual Report The interlinked crises show more than ever the need to which illustrates that SURGE already plays an focus on Green, Resilient, and Inclusive Development— integral role in the urban development sphere, the GRID approach. With two- thirds of the world’s both inside and outside the World Bank. population living in urban areas by 2050 and 80 percent of global GDP generated in cities, it is clear that I want to thank SECO for its pioneering support cities and surrounding regions have a major role to play in making SURGE a reality. We share a drive in building a GRID future, one that enhances resilience and passion for building inclusive and resilient and prosperity for all. communities and I look forward to continuing our partnership. In response, the World Bank launched the Sustainable Urban & Regional Development (SURGE) Umbrella Over the next year, we plan to both deepen and Program in August 2020 to help cities and regions widen SURGE’s impact. To grow the program, in developing countries to function as drivers of I will personally call on developing partners to sustainable and inclusive economic development. join our efforts. To deepen and solidify results This new program— supported by the Government of on the ground, teams will engage closely with Switzerland’s State Secretariat for Economic Affairs governments to assure that the knowledge (SECO)—places externally funded urban development produced will trigger local action and inform activities under a single umbrella to increase efficiency, policy changes and investment decisions. quality, and scale. Together we can recover better. 9 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 03 EXECUTIVE SUMMARY 10 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) EXECUTIVE SUMMARY 03 The Sustainable Urban and Regional Development public-private partnership (PPP) and land value (SURGE) Program is a partnership between the capture (LVC) projects to receive project World Bank and the Swiss State Secretariat for preparation support. Economic Affairs (SECO) aimed at enabling cities and regions in developing countries to function The program Strengthening Urban Cadasters for as drivers of sustainable and inclusive economic Urban Governance in Peru Trust Fund has been development. working on its legal and institutional diagnosis of the governing capacities of Peru’s leading SURGE was established in 2020 and is adminis- agency on urban cadasters. An initial roadmap tered by the World Bank’s Urban, Disaster Risk for strengthening the capacities of Peru’s leading Management, Resilience, and Land Global Practice agency on urban cadasters was completed, as (GPURL). It comprises five trust funds: the anchor well as a preliminary analysis of the regulations Trust Fund supporting sustainable urban and determining unit values of land and buildings. regional development globally and four associated country trust funds focusing on Bolivia, Peru, SURGE country programs in Bolivia and Serbia Serbia, and South Africa. SURGE’s combined have only recently been established, but already pledged budget stands at close to US$30 million, prepared their delivery system, which will allow of which US$17 million has been received, US$12 them to report results next fiscal year. million approved for activities, and US$4.3 million disbursed or committed. LOOKING AHEAD In FY21 (July 2020 to June 2021), its first year of In fiscal year 2022, the SURGE program operation, SURGE grant activities were manage-ment team plans to engage in challenged by restrictions related to the fundraising and dissemination efforts to grow COVID-19 pandemic. This slightly affected the SURGE’s impact. The SURGE’s anchor trust fund timelines of some activities, as teams adjusted their will focus its support on building the capacity of data gathering processes and moved cities to go from problem identification to engagements with stakeholders and clients online. strategy development, and finally to operationalization. The associated trust fund in DELIVERABLES Peru plans to assist the Peruvian government in the development of a Land Administration One key deliverable for the SURGE Umbrella Domain Model. The team will also work with Anchor Multi-Donor Trust Fund (MDTF) is government authorities and stakeholders on land the global study on drivers of city growth management and LVC instruments. In fiscal year (From Pancakes to Pyramids: City Form to 2022 (FY22), the SURGE’s associated Serbia Promote Sustainable Growth). Furthermore, a program will help assess and diagnose series of contributions has been made to ongoing urban development needs and gaps for up to diagnostics on challenges and priority investments 10 cities and perform a deep-dive analysis on for sustainable urbanization in Angola, Costa municipal solid waste management. As the Rica, Madagascar, Nepal, Nigeria, the Urban MDTF for South Africa moves into FY22, Philippines, Uzbekistan, and the Middle East its work on climate resilient asset management will and North Africa region. progress. The team will also work on Cities Infrastructure Development Management The Urban MDTF for South Africa Systems and strengthening metrop delivered improved turnaround times for o l i t a n municipalities’ capacities. Furthermore, electronic Rates Clearance Certificates (for the team will focus on creating spatialized property registration) and for e-permitting economic data and institutionalizing change (construction permits). The program also management. The Bolivia Program plans to produced draft sections on revenues and strengthen the capacities of Santa Cruz and La expenditures for an intergovernmental fiscal Paz to engage with citizens and manage flood review, as well as draft resilience rating risks. The program will also help develop methodology for appraisal guidelines. A draft Municipal Climate Action Plans and review report has been completed on spatialized municipal budgets for resilience. At the economic data to help inform city planning national level, the program will help promote and investments. Further-more, a selection and operationalize a national framework for process has been completed for the delivery of urban resilience. project preparation support to eight resilient 11 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 04 INTRODUCTION 12 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Cities are on the frontlines of combating multiple BOX A: The Five SURGE Pillars crises. The COVID-19 pandemic, climate change impacts, natural disasters, economic downturns, Pillar 1 and violent crimes all concentrate in urban areas. At the same time, cities are the world’s economic City Management, Governance, and Financing — powerhouses, offering individuals opportunities strengthen the financial and institutional dimensions to achieve greater wellbeing. As people hope to of urban and regional development and management find better lives in cities, the world is facing mass in developing countries. migratory flows to cities. Pillar 2 The World Bank’s Urban, Disaster Risk Territorial and Spatial Development—support the Management, Resilience, and Land Global Practi- adoption of the spatial and territorial dimension to ce (GPURL) helps governments in developing spur local and regional development and growth. countries build inclusive, resilient, and sustainable Pillar 3 cities, villages, and communities. It works closely with both clients and developing partners. To do Sustainable and Climate-Smart Cities — promote so more efficiently, the practice created a central innovation and technical excellence in the urban and instrument in 2020 for all donor- funded activities regional development agenda and promote low-carbon, related to regional and urban development: the climate-smart urban and regional development. Sustainable Urban & Regional Development (SURGE) Umbrella Program. Pillar 4 Urban Poverty and Housing — foster more inclusive SURGE’s overarching development objective is to urban areas to address urban poverty and housing enable cities and regions in developing countries issues related to urban poverty, slum upgrading, low-cost to function as drivers of sustainable and inclusive housing, resilient housing, and solutions for addressing economic development. The umbrella program the increasingly urgent issues of migration and forced consolidates multiple urban global and country programs and helps align donor funds and GPURL’s displacement in urban centers. strategic priorities. It currently comprises five trust Pillar 5 fund programs supported by the Government of Switzerland’s State Secretariat for Economic Urban and Regional Resilience — increase urban Affairs (SECO): the anchor trust fund supporting and regional resilience in developing countries by sustainable urban and regional development strengthening disaster risk management in cities, globally and four associated country trust funds enabling resilient recoveries after disasters, increasing focusing on Peru, Bolivia, Serbia, and South Africa. understanding of climate risks, and supporting resilient Its combined budget stands at close to US$30 investments. million with all trust funds actively disbursing. Early SURGE results already show the umbrella program helps create global and local knowledge to This annual report presents SURGE progress guide client governments and stakeholders in their during the first 20 months of operation, from urban policy and investment decision-making. inception up to June 30, 2021. The report is structured around the individual trust funds it The SURGE umbrella has five thematic pillars encompasses (chapters 5 to 9), its overarching that are aligned with the GPURL Urban Strategy results framework (chapter 10), the financial and the Global Solutions Groups that have overview (chapter 11), and a forward look proven effective vehicles to channel operational (chapter 12). and technical support to World Bank teams and clients. The pillars, shown in Box A, bundle the activities of technical teams to spur innovation and improve technical and policy advice along sectoral lines and issues areas, while leaving enough flexibility to respond to emerging challen- ges and new issue areas. 13 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 05 SURGE Umbrella Anchor Multi-Donor Trust Fund 14 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 SURGE leverages years of experience and urban area (component 22)), and two global studies lessons from partnership programs in the urban (under the legacy SUD II component 33 – Technical development sphere. Its anchor Multi-Donor Deep Dives) in fiscal year 2021 (FY21). Most Trust Fund (MDTF) is the restructured Phase II activities focus on delivering diagnostics to identify Sustainable Urban Development MDTF (SUD the key challenges cities face and their priority II), a Swiss State Secretariat for Economic Affairs investments for sustainable urbanization (i.e., (SECO)-funded program built on the successes and legacy SUD II component 1, or Phase 1 of activities lessons from a previous phase (SUD I). The program in a city). As the city engagements complete their benefitted from years of experience in supporting upstream data and diagnostics work—also referred diagnostic and analytical work on both global and to as urbanization reviews—they will move in fiscal national urbanization trends, as well as from an year 2022 (FY22) to building cities’ knowledge independent program evaluation in 2016. The and capacity to identify investment projects that lessons informed SUD II’s workplan to continue aim to deliver dynamic, inclusive, and sustainable diagnostic work on urban development with a cities (i.e., legacy SUD II component 2, or Phase strengthened focus on cities and metropolitan 2 of activities). A status update on each activity is areas, with special emphasis on strengthening the presented below, organized by region. Chapter 10 capacity of cities to operationalize the diagnostic summarizes results of the activities following the results and technical recommendations. structure of the SURGE results framework. A status update and scores of relevant results indicators The SUD II workplan, lessons, and ongoing are discussed in that section. The SURGE’s results activities were all brought forward into the SURGE framework was partly informed by SUD II’s results Anchor MDTF (under Pillar 2—Territorial and framework. All activities contribute to achieving the Spatial Development). Consequently, the anchor SURGE objective, which also became the anchor MDTF already supports 9 city engagements and one MDTF’s development objective: to enable cities regional activity (these relate to the legacy SUD II and regions in developing countries to function components 1 and 2 – the diagnostical sub-national as drivers of sustainable and inclusive economic urbanization reviews (component 11) and the development. subsequent technical assistance in the same city or 1 Original title of legacy SUD II component 1: Examining Sub-national urban development from a national perspective. 2 Original title of legacy SUD II component 2: A “value chain” approach to sup port urban development. 3 Original title of legacy SUD II component 3: Frontier policy Issues in urban development. 15 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) AFRICA SURGE is also supporting Madagascar to reap further benefits of urbanization. By 2050, Cities in Africa are experiencing skyrocketing Madagascar is expected to have tripled its urban population growth. Governments are struggling population within 30 years.5 This fast pace of to keep up with the rapid expansion as many urbanization has put tremendous pressure on the lack necessary planning capacities and sufficient infrastructure and services in Malagasy cities, as municipal resources. This has resulted in large investments have not kept pace with the changing scale housing shortages and millions of urban realities. The SURGE project helps the Malagasy dwellers living in informal settlements without government to identify priority interventions for access to basic services, transport, energy, and the increasing the benefits of urbanization and to jobs they need. These informal settlements are also enhance social inclusion. An urbanization review more vulnerable to natural hazards and face a high was launched in February 2021 and is expected to prevalence of COVID-19 cases. be finalized in October 2021. The team working on the review consulted many stakeholders, In response, the SURGE umbrella is supporting including sectoral ministries, donors, mayors, local and federal governments in Africa to and nongovernmental organizations (NGOs). strengthen their urban planning and investment The review leverages the World Bank Planning, skills. Several teams are undertaking urbanization Connecting, and Financing Cities Framework, reviews to help governments identify priority streamlining resilience throughout diagnostic work. reforms and investments to make cities more A typology of Malagasy towns has been developed inclusive, resilient, and competitive. The reviews based on 48 representative cities. The final report are followed-up by more hands-on support will offer a menu of policy options and investment to strengthen local capacity and support the priorities that are expected to be fiscally and implementation of investment plans. politically feasible. Following the review, technical studies and capacity building efforts will help the The SURGE-supported team working on Angola’s government advance prioritized interventions. urbanization review has conducted data collection and analysis and has consulted stakeholders. The “Lagos Platform for Development” provides Angola’s cities face major unemployment, just-in-time technical assistance as well as long- poverty, and inequality challenges. Its urban term multisectoral strategic advice to the State population keeps growing and is expected to Government of Lagos. Lagos State is a megacity reach 61 million by 2050.4 Recent changes in region in Nigeria, hosting about 27 million people. government policies provide an opportunity to Two-thirds of Lagos residents live in slums, and set Angola’s urban development on an inclusive the city is one of the most congested in the world. and resilient development path. As of June 30, The State Government of Lagos reached out to 2021, the team working on the urbanization the World Bank to help address some of the key review prepared technical background notes on development challenges. With SURGE support, the urban growth patterns and challenges, as well as “Lagos Platform for Development” was established. on urban resilience. Special topics of interest that A systematic multisector analytical review of the emerged from data analysis and consultations Lagos City region is expected to be completed include slum upgrading, solid waste management, within the next few months. This multisector infrastructure planning, informal neighborhoods, effort is being funded by SECO and additional urban flooding, and climate change adaptation. donors like PROBLUE, potentially the GAP fund A note on municipal finance is currently under (under the approval process), or World Bank development. The notes and data analysis will feed budget. Sectors under assessment include water into the final urbanization review report which will and sanitation, transport, urban, energy, and solid be delivered in FY2022. Key counterparts in Angola waste management. will validate and discuss the findings. This will also be important for the second phase of the SURGE- In parallel, with additional funding provided by supported work in Angola. In this second phase, the the energy sector, the energy team is exploring team will provide technical assistance and capacity how to unlock the market for distributed solar building support to the Government of Angola to photovoltaic (PV) in Lagos State without distorting further advance the policy reforms and investment the national and state’s electricity markets. interventions prioritized in the upcoming review. 4 Source: UN DESA. World Urbanization Prospects: The 2018 Revision. 5 World Urbanization Prospects 2018. 16 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 Furthermore, on-demand technical assistance on In partnership with the International Finance bankable projects is being delivered. This resulted Corporation (IFC) and financed by PROBLUE, a in the identification of 37 urban resilience-building solid waste management sector assessment with actions that have a path to bankability. Bankable a special focus on plastics for the Lagos region projects identified in the transport sector are valued is also underway as part of the “Lagos Platform at more than US$7 billion and range from bus rapid for Development.” The activity involves five transit (BRT) corridors, interstate bus terminals, government entities and aims to reduce marine water transport, light rail transit development, and plastic pollution and promote sustainable plastic cable cars. The team plans to pilot the development management (reduce, reuse, recycle). of some of the bankable projects with the Lagos State Government. EAST ASIA AND Assessment workshops have been completed in all five cities. These workshops aimed to help PACIFIC characterize the economic drivers for growth, development vision and strategies, development Urbanization in the East Asia and Pacific (EAP) opportunities, challenges and constraints, region has created enormous opportunities for spatial development, and urban character for many. The EAP region stands out for its impressive each participating city from the green and rate of poverty reduction over the past two resilience perspective. The virtual workshops decades, with much of it occurring in cities (World used the charrette methodology to undertake Development Indicators 2016).6 Rapid growth in deep-dive discussions into the key actions and cities, however, can create challenges. It is often recommendations that the cities will use in difficult for cities to keep up with the growing identifying catalytic investments, including needs of their citizens, and a lack of planning and an options analysis for implementation. The investments in physical infrastructure, housing, Assessment Studies Report resulting from the and transportation invariably results in congestion, workshops is currently being finalized. pollution, and widening inequalities for urban dwellers. Urban inequality can undermine One of the highlighted workshops has been a urbanization’s benefits by threatening the virtual knowledge-sharing workshop which was sustainability of the growth process and slowing conducted to set the stage for the implementation poverty reduction, and it can lead to social divisions, of technical assistance and to orient the conflict, and rising crime and violence in cities. participating cities with international best practices on green and resilience design principles. TACKLING TERRITORIAL INEQUALITIES Experts from the team presented the best practices and approaches from other countries which could The Philippines has experienced explosive urban serve as inspiration for the cities. Assessment population growth in the last five decades. More workshops and follow-up meetings with all than 60 percent of its population lives in urban participating cities were completed. A diagnostic areas and Philippine cities are engines of economic tool was used to help the cities in identifying growth, sharing about 80 percent of the country’s existing challenges and capabilities to enable green gross domestic product (GDP). There is, however, and resilient development; determining strengths a wide gap in economic development between and opportunities; and identifying gaps and areas Metro Manila and secondary cities in the region. To for improvements. The assessment process helped boost urbanization benefits and support addressing the cities understand and prioritize development territorial inequalities in the Philippines, SURGE issues and challenges; and facilitated the visioning is currently supporting advisory assistance to process for greener and more resilient cities. This five secondary cities in formulating development engagement process is also feeding into the city’s strategies. These will guide the selected cities in own planning processes like comprehensive land- pursuing sustainable and inclusive growth and use, master planning, and investment prioritization competitiveness as part of the COVID-19 Economic at the local level. Recovery Program. Particularly, the work helps formulate development strategies that follow green and resilience planning principles. 6 East Asia and Pacific Urban Review 17 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Vietnam is an example of an EAP country that coordination of the planning and development of has had high urbanization growth in some of its infrastructure, housing, and land. regions that has brought economic growth and development. For planning purposes, the country Currently, SURGE is supporting the creation was divided into six socioeconomic regions. of a multisectoral strategy for Vietnam to The Southeast region is the most urbanized address urbanization challenges and help the region and is economically the most vibrant Southeast region reach its growth potential. and important region, responsible for the lion’s One of the action lines directly follows from share of Vietnam’s growth and development. the recently completed (2020) urbanization The region is typically called the “workshop” of review for Vietnam (Vietnam’s Urbanization at a Vietnam and has been the main destination of Crossroads: Embarking on an Efficient, Inclusive, the country’s foreign direct investment (FDI) and Resilient Pathway), that identifies the lack of in the past decades, which has been one of the regional integration and coordination between most important drivers of Vietnam’s growth. the municipalities as one of the most constraining Consequently, the region has the highest per capita growth factors in the Southeast region. To reach GDP in Vietnam. However, despite its importance its growth potential, the Southeast region must in contributing to Vietnam’s socioeconomic improve its regional integration and increase development, there have been concerning signs its investments in infrastructure and service of “slow-downs” in the Southeast region because delivery. As such, this work’s primary aim will be of inefficiency in resource allocation. This has to engage in upstream analysis and consultations led to a weak integration of labor market and to identify regional coordination mechanisms production linkages, due to an inadequate level of and find an initial action/investment plan for investment as well as weak regional and sectoral key infrastructure in the Southeast region to be further supported by the World Bank. EUROPE AND of urbanization trends and a comprehensive vision regarding the way cities can drive national CENTRAL ASIA development and the role public sector needs to play in it. In the meantime, urbanization is failing Urbanization in Europe and Central Asia (ECA) is to deliver development results—city economies characterized by population growth and decline, are underproductive, access to services and and economic density increasingly concentrated infrastructure in cities is far from universal, and in fewer cities. The rate at which cities are growing the model of urban growth (dominated by sprawl) or declining varies substantially both within is unsustainable. and among countries in the region. Each urban development pattern brings its unique challenges. To gain a better understanding of Uzbekistan’s Urban population decline, for example, often leads urban growth patterns, SURGE is supporting to fiscal imbalances and housing vacancies. Cities the preparation of an urbanization review which experiencing population growth need to adapt is near completion. The Urbanization Spatial local infrastructure to ensure that the growing Analysis activity, which in its first phase, has population is well-absorbed and integrated into the focused on painting a robust picture of urbanization city.7 The public sector plays an important role in and urban growth in recent decades in Uzbekistan responding to the challenges, both at the national and identifying key factors that have contributed and local levels. SURGE assists the governments of to it. To achieve this, the team has conducted Uzbekistan and Romania in their responses. an analysis of demographic trends in cities and spatial growth of urban build-up using locally UZBEKISTAN’S URBANIZATION TRENDS available data (which is unreliable since the last population census took place in 1990) and global Uzbekistan is one of the few countries in the gridded datasets. The quantitative analysis was ECA region where rapid population growth and complemented with in-depth city case studies that a low level of urbanization suggests that further focused on two key questions: (1) what conditions urbanization and growth of cities will be one of explain the dominance of sprawl as the main the main development trends in the near future. However, while the government is recognizing 7 Restrepo Cadavid, Paula, et. al. Cities in Eastern Europe and Central Asia: A it, there is still a lack of deep understanding Story of Urban Growth and Decline. Washington, DC, World Bank, 2017 18 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 model of urban growth? and (2) what is the role workshop with the representatives of key of local governments in advancing local economic government agencies will take place to discuss key development? To investigate the drivers of urban findings and agree on the next stages of work. The sprawl, three city case studies were prepared: event is currently being planned as a three-day Karshi, Kasansay and Namangan. To complete the series of working sessions on separate topics related case studies, team members based in Uzbekistan to urbanization and urban development. traveled to the cities and spent three days in each of them collecting data (e.g., consulting local ROMANIA’S SUSTAINABLE CITIES REVIEW urban planning documentation) and interviewing local and regional government representatives While Romania’s urban population has declined and property developers. Case studies on local over the past 25 years, the built-up area has economic development focused on Akhangaran expanded, and cities and their surrounding and Pskent (two small cities in Tashkent region). municipalities have continually grown. Urban Team members visited both towns and conducted sprawl with the simultaneous hollowing out of interviews with local government representatives the urban core is the dominant growth form with and businesses active in the cities. Statistical data most small and medium-small cities facing severe and data on municipal revenue and spending population loss. SURGE provided a grant for an (provided by local authorities) was also used in the urbanization review to inform investment decisions development of case studies. toward more sustainable cities. As of June 2021, the team concluded all planned research and drafted Throughout the preparation of the report the the Romania Sustainable Cities Review report. project team has held regular consultations with the The main report is in its final design stages and the representatives of the Urbanization Department team is preparing a dissemination plan. The work of the Ministry of Economic Development and consolidates and deepens advisory and analytical Poverty Reduction. The consultations helped steer work already conducted in the urban sector in the focus of the analysis, validate the emerging Romania into a pragmatic operational program. findings, and select case studies. A dissemination 19 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) government to play their developmental role. The review’s findings support the dialogue with the government about capacity building for local In addition to these high-level conclusions the report governments on resilient infrastructure invest- offers actionable pragmatic recommendations. ment programs. The authors state that while Romanian cities have been the engines behind the Alongside the report, the SURGE grant also country’s growth, the way they developed in recent facilitated higher-level planning and policy years, with growth in peri-urban areas occurring initiatives with national ministries and the Euro- significantly faster than in the urban core, is un- pean Commission. It provided advisory inputs and sustainable and creates significant challenges support to the Ministry of Development, Public for future resilience. The dysfunctionalities Works, and Administration toward the development of the planning system have led to significant and implementation of Romania’s first National infrastructure gaps in the growing places. Urban Policy. Meanwhile the majority of static or shrinking places struggle with limited local capacity to Furthermore, the project crowded in World Bank address the challenges of the aging population, funds and expertise on two important topics. built environment, and infrastructure systems, First, analytical work has been conducted to while retaining their residents and connecting identify interventions to support Roma inclusion. to economic opportunities. Two high- level This expands beyond urban infrastructure to conclusions reached in the report are: include actions around land tenure and security, identity documents, integrated social services, and (i) An integrated, climate-smart, investment collaborations with NGOs and other social actors. approach focused on the neighborhood level offers Second, the team generated urban heat island significant multiplier effects, and maps, cross referenced with urban marginalized communities and city investment plans to explore (ii) National government has a significant role to project options with maximum heat mitigation play in building capacity and modernizing local potential. LATIN AMERICA AND of the fastest urban rate growths. However, even though it is one of the most advanced economies THE CARIBBEAN in the region, it has several causes of low growth and competitiveness which are related to low With more than 70 percent of its population living productivity, low investment levels, and lack of in cities, Latin America and the Caribbean (LAC) export diversification. In terms of social inclusion, is among the most urbanized regions in the world. the country still suffers from income inequality, More specifically, Central America is undergoing economic exclusion, low access to quality basic an important transition. Urban populations services, and high levels of crime and violence. are increasing at accelerated speeds, bringing pressing challenges for development, as well as Costa Rica has the opportunity to use urbani- opportunities to boost sustained, inclusive, and zation to improve prosperity and livability, which resilient growth. Today, 59 percent of the region’s is why the SURGE grant has been support-ing population lives in urban areas, but it is expected the preparation of the “Urbanization Review of that 7 out of 10 people will live in cities within the the South Corridor within the Greater Metro- next generation. At current rates of urbanization, politan Area of San Jose,” with the objective of Central America’s urban population will double defining a set of practical recommendations to in size by 2050, welcoming more than 25 million improve urban management capacities to-ward new urban dwellers calling for better infrastructure, greater sustainability and inclusion in the three higher coverage and quality of urban services, and municipalities and the wider Greater Metropolitan greater employment opportunities. Area (GAM). The outline has already been approved and discussed closely with Costa Rican PROSPERITY AND LIVABILITY IN COSTA RICA counterparts—including the Ministry of Housing and Human Settlement (MIVAH), the Ministry Costa Rica is one the most urbanized countries of the Planning and Economic Development in Central America, with 75 percent of the (MIDEPLAN), and the First Lady, who oversees population living in urban areas. It also boasts one federal public investments specifically related 20 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 to mobility—in defining the scope of the Corridor region to the GAM area. The focus will be Urbanization Review. It includes four main focus on catalyzing transport-oriented development in areas: (i) a review of the drivers of urbanization and key urban centralities and along main commuting development of the GAM, to be able to situate the corridors connecting the Southern municipalities analysis of the South Corridor (SC) region and its with the GAM, and incorporating a focus on specific urban and socioeconomic characteristics affordable housing, public space regeneration, and and challenges within this larger context; (ii) an in- active mobility. This will include the development depth characterization of the three municipalities of an Urban Masterplan for Economic and of the South Corridor; (iii) a diagnostic of the main Social Integration in the South Corridor, which challenges in connection with the SC and the will identify key strategic urban infrastructure GAM, as well as the new reality that COVID- 19 investments to reduce inequalities, to recover brought to these municipalities; and (iv) the main economic activity and improve urban quality institutional, capacity, and funding challenges of life. The investment identification is taking in the three municipalities of the South Corridor. place in close consultation with municipal and A transversal focus on risk management and metropolitan authorities, as well as MIDEPLAN climate mitigation opportunities and challenges is and MIVAH, and will be aligned to other integrated across the pillars. investment projects in preparation in the GAM area, including those connected to the planned The already initiated second component will electric train, as well as the implementation of the be based on a review of the findings from the government’s Territorial Economic Development Urbanization Review, on the identification of Strategy 2020–2050. strategic investments to better connect the South 21 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) MIDDLE EAST AND SURGE grant has supported: a) Monitoring of 156 MENA city samples through the COVID-19 NORTH AFRICA pandemic, city officials have received valuable information for decision-making from the The Middle East and North Africa (MENA) measurement of the effects of various policy region is one of the most urbanized regions in responses to the pandemic. The effects of city the word, with 65 percent of its inhabitants morphology (density and built-up area) and living in cities (280 million people). The region its impact on the economic recovery was also hosts some of the oldest and largest cities on the identified, where cities with lower built-up planet, like the Cairo and Teheran metropolitan areas (less dense) recovered more slowly than areas, which host about 20.4 and 15.2 million compact cities; b) the development of climate- people, respectively. These cities produce about compatible urban development models where 50.5 percent of the region’s GDP but tend to see the source of CO2 emissions has been identified low private sector growth rates and limited job and contrasted with earth observation data; c) growth. In the 2014–16 period, large metro areas a quantitative Spatial Computerized General in MENA grew jobs at 3.4 percent and GDP per Equilibrium (SCGE) urban model for the capita at 0.7 percent, which are slightly higher cities of Amman, Cairo, and Casablanca was rates than rural areas and the average economic developed, through which key policy scenarios growth of the region. for each city were simulated along with their economic impacts. These specifically identified Compared to cities worldwide, these ancient and sectoral interventions, like, for example, in busy cities are unable to absorb the benefits of the transport sector (metro lines), that would the agglomeration economies associated with increase real income and productivity in Cairo. urbanization. The model’s results for the other two cities are still under preparation: and d) an analysis of VIBRANT CITIES. HOW CAN CITIES service delivery governance in the region. It SUPPORT JOBS AND ECONOMIC GROWTH used cutting-edge analytical work on public IN MENA? sector performance and the management of complex public organizations for local service To support the economic and inclusive growth delivery. It will ultimately propose approaches of cities of the region, SURGE is supporting that policymakers can use to gradually improve an urban economic and spatial diagnostic of the functioning of city/local government the constraints that are limiting cities in their organizations to achieve higher service delivery ability to contribute to economic growth and and other objectives. improved labor markets. To accomplish this, the The Kathmandu Valley (KTMV) has transformed SOUTH ASIA into one of the fastest growing metropolitan regions in South Asia. It accounts for about one-third of South Asia’s urban population is poised to grow Nepal’s urban population and continues to sustain by almost 250 million people by 20308 . South an annual population growth rate of about 4.3 Asia can gain from urbanization by fostering percent. The valley is characterized by high and productivity through the agglomeration of both sustained population growth in the urban core and people and enterprises in its towns and cities. One fast sprawling at the periphery. Kathmandu, the shortcoming, however, has been the inadequate largest city, comprises 40 percent of the valley’s provision of infrastructure and basic urban services. population yet other peripheral municipalities, are Two others are insufficient housing and a failure to also experiencing rapid growth. deal with pollution. CATALYZING SUSTAINABLE AND INCLUSIVE URBAN DEVELOPMENT IN KATHMANDU 8 Ellis, Peter; Roberts, Mark. 2016. Leveraging Urbanization in South VALLEY Asia: Managing Spatial Transformation for Prosperity and Livability. Washington, DC: World Bank. © World Bank. https://openknowledge. worldbank.org/handle/10986/22549 22 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 The KTMV is Nepal’s main cluster of economic The team has completed a comprehensive activities accounting for at least one third of literature review to understand initiatives Nepal’s GDP and has the highest concentration and analysis, data gaps, and institutional of formal jobs in the country. Yet increasing architecture. This review has included: geospatial urbanization has brought on significant challenges and satellite data, demographics, governance, in terms of spatial planning and delivery of major infrastructure and projects, service delivery infrastructure and services. The valley faces coverage, land use and land cover, spatial economy important infrastructure deficits, including in and economic clusters, impact of the pandemic on water supply, sewerage, and waste management. economic activities, tourism economy, municipal In addition, most growth of built-up areas is taking finance (e.g., local government’s own source place in a haphazard and uncontrolled manner. revenue, expenditures, fiscal transfers). The team is Limited coordination at the metropolitan level also undertaking an extensive stakeholder outreach and fragmentation of responsibilities between the initiative. The Urbanization Diagnostic report will central and local authorities has led to unplanned provide practical recommendations to address and environmentally unsustainable urban service delivery and sectoral priorities, deliver development patterns. long-term operational technical assistance to local governments, and identify priority investments TOWARDS INCLUSIVE URBANIZATION and COVID-recovery initiatives. To solve these urbanization challenges and for the Kathmandu Valley to have a more efficient and inclusive urbanization, SURGE is supporting a team which includes economists, urban planners, cultural heritage, tourism experts, solid waste management specialists, and municipal finance specialists to examine the pace and form of urbanization in Kathmandu, identify key constraints and opportunities for more efficient and inclusive urbanization, and inform priority policy options and investment areas. 23 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 24 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SURGE Umbrella Anchor Multi-Donor Trust Fund 05 GLOBAL Quantifying the wider socioeconomic benefits and costs of urban infrastructure is typically harder to Beyond city-level activities, SURGE also supports do because such benefits and costs may take a long global level analysis to help develop solutions to time to be realized, be more uncertain and context- urbanization challenges worldwide. By partnering specific, and are less well understood. with universities and private firms SURGE’s global activities provide developing countries and partners The team worked together with a specialized firm access to cutting-edge approaches in sustainable to prepare a paper that serves as a practical guide urban development. SURGE supports research for assessing wider socioeconomic impacts of and analysis on frontier issues faced by cities urban infrastructure projects ex ante, using both globally. This enhances the global understanding qualitative and quantitative approaches. The study of urbanization and helps create tools and policy helps enhance the capacity of World Bank task frameworks for decision makers globally. During teams and counterpart stakeholders to conduct the fiscal year 2021, SURGE’s global work helps required analysis. It summarizes the methodologies understand the drivers of city growth and offers that can be used during project design and appraisal insights on how to anticipate economic impact of stages in estimating the ex-ante urban investment urban infrastructure. impact across 13 different sectors. Preparation of the paper was informed by, among others: a FROM PANCAKES TO PYRAMIDS series of focus group discussions with World Bank task team leaders on their experiences of project As countries and cities grapple with the challenges economic analysis; an in-depth review of project brought about by COVID-19, the fundamental appraisal documents for World Bank-financed forces shaping urbanization are likely to be urban infrastructure projects; and conversations central for a resilient recovery. Co-financed by with IFC about the tools they developed for project SURGE, a deep dive study resulted in a flagship economic analysis. The team also advanced with in- report: From Pancakes to Pyramids: City Form to depth case studies of urban infrastructure projects, Promote Sustainable Growth. The first-of-its-kind comparing estimates of impact with the actual World Bank analysis of the shape and growth of impact and private capital mobilized. nearly 10,000 cities between 1990 and 2015, helps understand the economic and institutional forces With the primary analytic outputs almost that determine the evolution of urban form and completed, the team will turn its focus towards function. The report draws on recent advances in dissemination and knowledge sharing. The two areas—satellite imagery and urban economics— full suite of outputs, combined with a summary to give leaders new tools for investigating the presentation, will be disseminated internally within combined effects of economic drivers and policy the World Bank as well as externally with interested choices on a city’s development path. The study client governments following the Decision Review finds that the most successful urban areas are Meeting of outputs. The World Bank’s knowledge those that connect their growth to economic management team will provide support in planning demand and then support this with comprehensive and executing dissemination activities. Upon plans, policies and investments that help avoid finalization of the guidance note and case studies, uncontrolled sprawl. The team organized a virtual the SURGE-supported team also plans to support launch in June 2021. project teams in applying the tools in preparation of at least two World Bank-financed operations. MOBILIZING FINANCE FOR DEVELOPMENT SURGE also supports a deep dive study to help teams appraise wider economic benefits of urban infrastructure investments. The careful identification and - where feasible - quantification, of potential benefits and costs of investments is a critical element of good urban project justification and design. It is also important as public investments in infrastructure and public spaces can ‘crowd in’ considerable private investment, through the appreciation and development of local real estate, and wider investment in local productive activities. 25 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) IMPLEMENTATION Some of the SURGE-supported activities in other countries are affected by political changes and CHALLENGES elections. In Romania for example, recent political instability at national level may impact the grant The implementation of SURGE grant activities funded activities. Internal governing party elections has been challenged by restrictions related to the are due to take place by end September and the COVID-19 pandemic, particularly the development results will determine if a period of greater stability of urbanization reviews as the first phase of activities is to be expected. Mayors of several key secondary in cities (related to the legacy SUD II components cities are politically influential and very active. The 19) and in some cases, also the (development of the) conclusion of the party elections should allow them subsequent second phase of technical assistance greater focus on the pressing local challenges where in the same city or urban area (component 210). the World Bank can assist. Data collection was particularly affected, as well as engagement with clients and stakeholders. In Angola, the political economy in the run-up to the Stakeholder consultations in Nepal for example, presidential elections in 2022 influenced the policy were delayed due to the COVID-19 surge in the dialog with the client and is expected to continue to spring of 2021. Travel restrictions also limited the have an impact on the engagement going forward, feasibility of primary data collection. The team is including potential appetite for the identification now utilizing geospatial data and satellite imagery and preparation of potential investments and where possible. It has partnered with the World operations. Bank’s Global Facility for Disaster Reduction and Recovery (GFDRR) to collect mobility data for an input paper to the diagnostic that will help the team to better understand commuting patterns, market catchments, congestion, tourism, and season migration. The team has also benefited from close collaboration with the World Bank’s Geospatial Operational Support Team. Similarly, in Vietnam fieldwork was halted due to the pandemic. These delayed deliverables relying on fieldwork. With the assistance of international and domestic support the team is shifting surveys to now be administered online. To make up for the delay some work will be performed in parallel and not entirely sequentially as originally planned. Even before it is completely finalized, the diagnostic fieldwork will inform the technical assistance activities. The timeframe of the grant activities in the Philippines were also adversely affected by lockdowns and other mobility restrictions in participating cities as well as by the roll out of vaccination efforts. Most of the activities moved online, sometimes challenged by internet connectivity issues in participating cities. The grant closing date was extended to allow the team to adjust and complete the planned work. Building trust is also more difficult virtually. In addition to the general difficulties and constraints related to virtual engagement with a new client, several 9 Original title of legacy SUD II component 1: Examining Sub-national Angolan institutions did not readily share their urban development from a national perspective. data, which led to some delays in analysis as well as 10 Original title of legacy SUD II component 2: A “value chain” approach adjustments due to the availability of data. to support urban development. 26 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 9 27 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 06 STRENGTHENING URBAN CADASTERS FOR URBAN GOVERNANCE IN PERU 28 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) STRENGTHENING URBAN CADASTERS FOR URBAN GOVERNANCE IN PERU 06 STRENGTHENING MUNICIPAL FINANCES directed its efforts to improve regulations IN PERU related to territorial governance. However, most Peruvian local governments lack the technical Like most countries in Latin America, Peru and financial capacity to implement and enforce urbanized quickly in the second half of urban governance and planning instruments. t h e t w e n t i e t h c e n t u r y. This has led to the Also, Peru does not possess a functional, integrated rapid, unplanned expansion of urban areas. national system that aggregates all municipal level Local governments were confronted with the cadaster data. Local governments are, on average, unprecedented arrival of sheer numbers of migrant highly dependent on intergovernmental transfers, masses from the rural areas. They could not which sometimes account for over 95 percent of respond with better services and infrastructure to their budget. Their own source revenues, mainly the accelerated and unplanned expansion of cities, municipal fees, represent about 10 percent of especially in Lima, Peru’s capital city. The country subnational spending (virtually all at the municipal shifted from just over 50 percent urban in 1965 to level). The lack of cadasters, paired with weak tax almost 80 percent urban today. This unplanned administration capacity at the municipal level, urbanization resulted in the proliferation of informal contributes to making Peru one of the countries settlements, often in hazard-prone areas, and where with the lowest levels of property tax revenue in the people build their houses using precarious materials region. This situation has been aggravated by the and inadequate building techniques. economic impact of COVID-19, and the resources allocated by the central government are not enough In recent years, the Peruvian government has to cover basic municipal costs. Table 1. Peru Associated MDTF Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation Comp 1— Support national and municipal governments in adoption, adaptation and 0.65 0.36 0.36 0.07 20% scaling up of the LADM Comp 2— Support MVCS to enhance the capacity of municipalities and relevant 3.15 1.20 1.20 0.20 17% agencies on urban cadaster Comp 3— Strengthen institutional capacity 1.45 0.59 0.59 0.23 39% of the MVCS and the municipal governments PMA 0.28 0.11 0.11 0.01 9% TOTAL 5.53 2.26 2.26 0.51 23% IMPROVING MUNICIPAL FINANCING TOOLS improving urban planning and cadasters which will FOR DEVELOPMENT have an impact in Peru’s economic growth, social inclusion, and sustainable development. Without The Government of Peru has demonstrated a reliable information on key property aspects strong national commitment to improve local such as ownership, tenure, boundaries and use, government fiscal management and revenue policymakers and private investors are left to take generation. SECO and the World Bank are supporting decisions under substantial uncertainty, reducing the government through the Strengthening for the scope for productive investments, resulting in Urban Governance in Peru Trust Fund under Pillar obstacles to economic growth, social inclusion, 1 (City Management, Governance & Financing) and sustainable development. The overall budget and Pillar 2 (Territorial and Spatial Development) for this trust fund is US$5.53 million. In FY21, of SURGE. The objective is to strengthen national US$2.26 million was allocated and approved and municipal government’s capacity to improve across the program’s three components, of which their territorial management and financial and US$0.51 million or 23 percent was disbursed and institutional urban governance by leveraging committed (see table 1). urban cadasters and related urban management instruments. The Program will contribute to The first component will provide technical 29 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) assistance and capacity building activities to the regulations that determine the unit values of promote and support the government’s design of land and buildings to present new methodological the Peruvian profile of the Land Administration proposals for the valuation of urban properties and D omain Mo del (LADM). T h i s w i l l h e l p t o definition of national standards. Two preliminary modernize the urban land administration system, reports were presented to the MVCS and COFOPRI. complementing the efforts by the Peruvian The final report will be delivered to the stakeholders Government. To achieve this, technical assistance in early FY22; 2) provision of technical assistance activities geared towards facilitating the adoption to the MVCS for the design and implementation of the LADM-Peru profile for urban areas, included of the national urban observatory. The MVCS discussions with Peruvian agencies Ministry of envisages that the observatory should facilitate Housing, Construction, and Sanitation (MVCS), citizen participation in the design of urban planning Agency for the Formalization of Informal Property instruments. Initial technical assistance activities (COFOPRI), and Ministry of Economy and were focused on the design of this functionality; Finances (MEF) have taken place. A work plan for and 3) identification of international best practices the provision of technical inputs for the adoption of and preparation of a benchmarking report on the LADM-Peru profile was discussed and agreed urban observatories. Topics such as objectives, with Peruvian authorities. methodology, governance, financing , among others, were included as part of the benchmark. To complete this first component workshops will The report also included a draft roadmap proposal be organized with national and local authorities to for the design and implementation of an urban build capacities and facilitate agreements for the observatory in Peru. standardization of land information management. Later in 2021, a high-level and a process level data RISKS AND MITIGATION profile will be developed based on the assessment of the current land information processes and Some potential risks and delays with the described installed capabilities. This will lead to a core LADM activities are tied to the unusually long transition data model and a road map for developing extended of power to the new administration after the April valuation models. 2021 elections, and political instability, which may delay decisions by national level authorities. The second component will finance technical The main risks identified in the implementation of assistance activities for the assessment of the the Program activities are the following: MVCS. During the reporting period, consultancy services were initiated to carry out a legal and Political and governance: The national government institutional diagnosis of the governing capacities has seen political instability since the elections in of the MVCS of Peru, as the leading agency on urban April 2021. This could result in additional changes cadasters. The analysis also covered the COFOPRI affecting the Ministry of Housing and the Ministry and selected municipalities. To date, a progress of Economy and Finance, which in turn could report has been completed with a preliminary affect the administration’s priorities and ability to assessment of the capacities of the MVCS and carry out the activities supported by the Program. COFOPRI, considering the legal framework and To mitigate these risks, the WB team is keeping the availability of human resources and budget to constant communication with the counterparts perform cadastral functions. A key achievement at both Ministries, to make sure that there is a was the development of recommendations on the full understanding of their priorities and their steps required to strengthen MVCS capacities as concerns. In addition, the WB team will continue leading agency on urban cadastral matters. These to carry out early-stage activities that should not recommendations may inform dialogue with new be significantly affected. Finally, engagement with government authorities, raising awareness on the other relevant actors at the public, private, and need to introduce change at the legal/organizational academic levels can help create collective awareness level, and in terms of human resources and budget. and consensuses on the different Program activities and contribute to maintain the focus on their The third and last component will technically implementation. strengthen the capacity of the MVCS and at least two municipalities to design and deliver LVC Capabilities: There is a risk that the government instruments. During the first semester of 2021, will have limited resources to carry out reforms that the team focused on three topics in coordination the Program activities seek to inform. However, with the MVCS and COFOPRI: 1) Analysis of it is expected that the government will enact the 30 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) STRENGTHENING URBAN CADASTERS FOR URBAN GOVERNANCE IN PERU 06 National Housing and Urbanism Policy in July RESULTS MONITORING 2021, which establishes the government priorities in the sector. These priorities are reflected in The activities funded through the Associated Peru services, objectives, indicators, and annual targets. MDTF contribute to achieving SURGE objectives Several of these activities, such as the national and outcomes. To track and measure results urban observatory, the urban cadaster, and a specifically achieved through the MDTF for Peru, national capacity-building strategy, are directly a subset of indicators has been articulated and was linked with the Program activities. Thus, the placed under relevant SURGE pillars. As such, it policy is expected to create the legal mandate helps shape SURGE’s overall results framework. for government agencies to work on these topics and should facilitate the allocation of resources A thorough internal review of tentative indicators for their implementation. Furthermore, the WB revealed the need to simplify and streamline team will continue to engage with counterparts indicators among the different trust funds that to support the implementation of the activities encompass the SURGE results framework. mandated in the national policy that are relevant Table 2 shows simplified and streamlined results to the Program. indicators GPURL will report on for the trust fund Strengthening Urban Cadasters for Urban OPERATIONAL SYNERGIES Governance in Peru as part of the larger SURGE results framework. The indicators are linked to The Peru Program’s outputs will inform the SURGE Pillars 1 and 2. It will, among other things, government in its efforts to refine the technical contribute to achieving the objective “Strengthen specifications for the different activities of the the financial & institutional dimensions of urban ongoing Bank-financed National Urban Cadaster development & management” and “Spur equitable and Municipal Support Project as well as other and regional development.” urban cadaster activities. Furthermore, capacity- building activities are already taking place with Starting in FY22, progress on the results public servants at the national and local level, i n d i c a t o r s w i l l b e r e p o r t e d a n n u a l l y. To and workshops and events are contributing to complement the numeric measurement and disseminate information on urban cadasters and reporting of results, the program management urban development. teams will continue to offer qualitatively results reporting as part of the annual report. Table 2. Indicators for activities funded through the Strengthening for Urban Governance in Peru Trust Fund, inte- grated into the SURGE results framework (NOTE: see statement on page 52 related to potential update of the framework) Program Indicators 31 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Pillar 1: City Management, Governance & Financing Pillar Outcome Indicators Pillar Output Indicators Outcome B: Municipal Own Source Revenues (OSR) and Property Tax Systems are improved B.1 Model to apply Land Value Capture instruments B.1.1 Proposal(s) for the application of LVCs and land (LVCs) instruments tested (yes/no) (Peru MDTF; management instruments, to promote urban regeneration, Baseline: No; Target: Yes) transport, or social housing development (Peru MDTF; Baseline: No; Target: Yes) Output indicators B.2 Urban observatory implemented by relevant B.2.1 Options for institutional arrangements, operational Ministry (for Peru: Ministry of Housing, Construction models, and procedures to implement an urban observatory and Sanitation, MVCS) (yes/no) (Peru MDTF; at the local/national level assessed (yes/no) (Peru MDTF; Baseline: No; Target: Yes) Baseline: No; Target: Yes) Outcome C: Cities have strengthened institutions and improved management capacities C.2.1 Capacity building strategy for cadaster-related functions for subnational governments designed C.2 Capacity building strategy for cadaster related (yes/no) (Peru MDTF Baseline No; Target: Yes) functions adopted by government (Peru’s MVCS/ COFOPRI for Peru (yes/no) (Peru MDTF; Baseline: for institutional C.2.2 ProposalOutput and organizational indicators no; Target: yes) strengthening on urban cadaster matters (including the use of cadaster for property valuation, urban management, and disaster risk management) submitted (yes/no) (Peru MDTF; Baseline No; Target: Yes) Pilar 2: Territorial & Spatial Development Objective: Spur equitable regional and local development Pillar 2 Indicator Number of cities/regions which spurred equitable regional and local development Pillar Outcome Indicators Pillar Output Indicators Outcome E: Governments have improved Spatial Development Planning & Investment Prioritization capacities 32 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) STRENGTHENING URBAN CADASTERS FOR URBAN GOVERNANCE IN PERU 06 33 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 07 BOLIVIA URBAN RESILIENCE TECHNICAL ASSISTANCE PROGRAM 34 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) BOLIVIA URBAN RESILIENCE TECHNICAL ASSISTANCE PROGRAM 07 MOVING TOWARD RESILIENT BOLIVIAN the umbrella program. The overall budget for CITIES this trust fund is US$4.44 million and has three main components. In FY21, US$2.21 million was B olivia’s rapid urbanization has generated allocated and approved across the program’s three positive agglomeration effects, but also exposed components, of which US$0.26 million or 12 many policy challenges associated with housing percent was disbursed and committed (see table 3). affordability, stress on public services, and precarious development in risky areas. Between BUILDING INSTITUTIONAL CAPACITY 1950 and 2012, Bolivia’s urban population grew at an annual rate of 3.7 percent, almost five times as The first component of SURGE’s Bolivia program fast as population growth in rural areas. In 1990 just is enhancing municipal institutional capacity, over half of Bolivians lived in urban areas, by 2018, to conduct project interventions. It will also help this figure was around 7.9 million people –roughly review, develop and implement regulations and 70 percent of the total population and expected policies that ensure the use of a resilience approach to reach 75 percent by 2025. Bolivia’s four largest for building and maintaining public assets and cities (La Paz, El Alto, Cochabamba and Santa infrastructure in municipalities. Overall, the Cruz de la Sierra) account for 41 percent of the total progress of implementation has included initiating increase in population in urban areas between 2001 dialogue with the municipality to structure activities and 2012. On the institutional capacity front, only and identifying relevant technical counterparts a third of municipalities in Bolivia have reported such as Santa Cruz’s Municipal Secretariats for having public investment programs in hazard Public Works and Technology, Innovation, and reduction activities and approximately half of the Planning, and La Paz’s Municipal DRM Secretariat. urban population continues to live in slums, many Activities will potentially include institutional of which are exposed to high risks associated with DRM capacity diagnostics and advisory to develop natural hazards. The ongoing COVID-19 global policy and operational DRM instruments and build pandemic is stretching already weak emergency technical capacity of municipal staff. In Santa Cruz, management capacities and public finances, most coordination was initiated with the Secretariat for critically at the municipal level. Technology, Innovation and Planning to hire a firm to design Tactical Urbanism Pilots in the city center Given the reiterated strong national commitments with a citizen engagement approach which will in Bolivia to improve urban resilience through be followed by a Strategy for the renewal of Santa different policy areas, SECO and the World Cruz’s city center. Bank are expanding and deepening its analytical and advisory support to Bolivia as the country The second component looks to develop and faces the multiple threats of climate hazard such diversify financing for urban resilience. A dialogue as droughts, floods, and forest fires. The trust has initiated with the municipal governments of La fund named Bolivia Urban Resilience Technical Paz and Santa Cruz who requested the Program’s Assistance Program contributes to the achievement support for the preparation of Climate Action of the SURGE objective and was placed under Pillar Plans (including local greenhouse gas emissions 1 (City Management, Governance & Financing) inventories and climate risk and vulnerability and Pillar 5 (Urban & Regional Resilience) of assessments), and the identification of climate Table 3. Bolivia Associated MDTF Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation 1.82 0.90 0.90 0.11 12% 1.20 0.60 0.60 0.06 10% 1.20 0.60 0.60 0.09 15% 0.22 0.11 0.11 0.01 9% 4.44 2.21 2.21 0.26 12% 35 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) finance mechanisms. Lastly, dialogue has advanced and in-person missions; (ii) strengthen coordination with the Vice ministry of Civil Defense (VIDECI) and communication mechanisms among relevant to identify activities to review and strengthen stakeholders; (iii) maintain a flexible approach to the national framework to finance disaster risk ensure alignment with evolving policy priorities at reduction, emergency response and recovery at the the national level; (iv) prioritize capacity-building local level. support in those areas where key gaps exist; and (v) establish a well-defined monitoring & evaluation The third component involves supporting the framework. Bolivian National Government in sustainable replication, scaling-up and knowledge sharing OPERATIONAL SYNERGIES for urban resilience. T h i s c o m p o n e n t w i l l support the National Government in developing In FY22, Program activities under Component 1 a comprehensive understanding of the effective will support capacity needs assessments, technical technical tools and organizational mechanisms guidelines, knowledge exchanges and trainings to promote urban resilience, thus enhancing to strengthen the technical capacity of municipal its capacity to disseminate good practices with governments to engage with citizens, improve municipal governments. local financing management, plan for resilient infrastructure and enhance their disaster risk RISKS AND MITIGATION management systems. Capacity building activities have already b een launched with municipal The current delays in preparation and government counterparts participating in the on- implementation of activities are mainly due going WB-financed Urban Resilience Project. These to shifts in national municipal government activities are expected to support the government in administrations (following national elections in its efforts related to urban resilience interventions October 2020 and municipal elections in March/ in Santa Cruz and La Paz including the application April 2021). The change in municipal governments of citizen engagement approaches for the upgrading in Santa Cruz and La Paz led to high staff turnover of municipal parks, the city center (in Santa Cruz) among the Program’s technical counterparts. and vulnerable neighborhoods (in La Paz); and However, the WB Team was able to quickly resume the establishment of integrated flood monitoring the dialogue with the new municipal counterparts systems (in La Paz). in June to present the Program framework and discuss key priorities and potential scope of RESULTS MONITORING work. Overall, the current administrations have validated the thematic areas proposed and showed The activities funded through the Associated ownership of this agenda and willingness to start Bolivia MDTF contribute to achieving SURGE implementation of activities. objectives and outcomes. To track and measure results specifically achieved through the MDTF for The Program faces key risks around: (i) Political Bolivia, a subset of indicators has been articulated and governance: Although no further national or and was placed under SURGE pillars. It helps shape municipal elections are scheduled for the duration SURGE overall results framework. of the Program, differences between the political agendas of the national and municipal governments A thorough internal review of tentative indicators can complicate implementation progress, especially revealed the need to simplify and streamline within the framework of the National Cities Policy; indicators among the different trust funds that (ii) Sectoral agenda: The National Cities Policy encompass the SURGE results framework. is not yet formally adopted by the Government, Table 4 shows simplified and streamlined results and its implementation timeline and process indicators that GPURL will report upon for the remains uncertain; and (iii) Institutional capacity Trust Fund Bolivia Urban Resilience Technical for implementation: Limited technical capacity Assistance Program as part of the larger SURGE can negatively affect the degree and speed of results framework. The indicators are linked to implementation of activities. To mitigate these SURGE Pillars 1 and 5. It will, among other things, risks and ensure implementation and continuity contribute to achieving the objective “Strengthen of activities, the WB Team will, among others: (i) the financial & institutional dimensions of urban maintain a continuous dialogue with all stakeholder development & management” and “Strengthen (including external development partners working cities and regions resilience to climate change and on urban development in Bolivia) through virtual disaster.” 36 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) BOLIVIA URBAN RESILIENCE TECHNICAL ASSISTANCE PROGRAM 07 Starting in FY22, progress on the results reporting of results, the program management indicators will be reported upon annually. To teams will continue to offer qualitatively results complement the numeric measurement and reporting as part of the annual report. Table 4. Indicators for activities funded through the Bolivia Urban Resilience Technical Assistance Program integrated into the SURGE results framework (NOTE: see statement on page 52 related to potential update of the framework) Program Indicators Pilar 1: City Management, Governance & Financing Pillar Outcome Indicators Pillar Output Indicators A.1 Policy and planning instruments by TA Output indicators program approved for implementation in selected municipalities and Government entities (Bolivia MDTF; Baseline: 0 in 2020; Target: 4 by 2024). 37 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Pilar 5: Urban & Regional Resilience Objective: Strengthen cities and regions’ resilience to climate change and disasters Pillar 5 Indicator I Number of cities/regions with strengthened resilience to climate change and disasters Pillar 5 Indicator II Number of new / improved regulations and institutional frameworks that strengthens cities focus on resilience to climate change related disasters Pillar Outcome Indicators Pillar Output Indicators Outcome O: Urban & regional legal and institutional framework and regulations for resilience and climate change adaptation are improved O.1.1 Number of capacity-building activities completed for policy makers and government entities ( Bolivia MDTF; Baseline: 0; Target 1, reported per thematic are a13, and Serbia MDTF; Baseline: 0; Target: TBD ) O.1 Number of municipalities/cities implementing O.1.2 Number of diagnostics or analytical pieces and/or planning sustainable urban development and completed under priority/thematic areas ( Bolivia resilience investments in line with national policies MDTF; Baseline: 0; Target: 2 and Serbia MDTF 14 and planning instruments (for Bolivia PNDIC11, for Baseline: 0; Target: >2) Serbia SUDS12) (Bolivia MDTF; Baseline:0; Target:4 and Serbia MDTF; Baseline 0; Target: >5) O.1.4 Platform and Action Plan for implementation of national cities policy is adopted ( Bolivia MDTF; Baseline: 0 in 2020; Target: 1 by 2024) O.1.5 Number of national planning and budgeting tools incorporating resilience in urban areas devel o- ped (Bolivia MDTF; Baseline: 0 in 2020; Target: 2 by 2024) 11 PNDIC - National Cities Policy of Bolivia 12 SUDS - Sustainable Urban Development Strategy for Serbia 13 Thematic areas for Bolivia include: (i) Disaster risk management and hazard information; (ii) Citizen engagement for planning & development of infrastructure; and (iii) Spatial analysis for resilient/local economic development. 14 For Serbia two priority areas should be completed (sustainable and resiience urban development and/or solid waste management). 38 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 39 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 08 STRENGTHENING SUSTAINABLE AND RESILIENT URBAN DEVELOPMENT IN SERBIA 40 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) STRENGTHENING SUSTAINABLE AND RESILIENT URBAN DEVELOPMENT IN SERBIA 08 PARTNERING FOR GREEN SERBIAN CITIES Serbia with the implementation of the SUDS and its action plan. The Strengthening Sustainable Serbian cities play a key role in the country’s and Resilient Urban Development in S erbia green COVID-19 recovery. They are vital to the Trust Fund was established in March 2021 under country’s economic growth and can drive regional SURGE. Its objective is to strengthen the capacity development. At the same time, they face multiple of the Government of Serbia and selected Serbian challenges. With cities contributing an estimated municipalities to plan for more sustainable, 70 percent of greenhouse gas emissions worldwide, inclusive, and resilient urban development and also cities in Serbia will be critical for lowering lo cal economic recovery – linked to Pillar 5 the country’s carbon footprint. Emissions have (Urban and Regional Resilience) of the umbrella however grown over the past 10 years and cities are program. The program is structured as a 4-year facing air pollution challenges. Additionally, they technical assistance program, with an overall deal with climate related disasters, such as heat b u d g e t o f a p p ro x i m at e ly U S $ 3 . 8 7 m i l l i o n . waves and floods. The increasing concentration In FY21, US$1.68 million was allocated and of people and economic activity in Serbia’s cities approved across the program’s components, of has put pressures on city resources and led to which US$0.03 million or 2 percent was disbursed uncontrolled development. Many of the challenges and committed (see table 5). are currently not being addressed by improvements in infrastructure, service delivery or sustainable Activities are organized around two components planning capacities. Serbian cities will thus need of which one focuses at local levels and the other to be managed better to increase its livability for at the national level. A National Coordination citizens and in order to serve as engines for low- Committee (NCC) is being developed which will carbon resilient economic growth. review planned activities. The Government of Serbia acknowledges the ASSESSING LOCAL NEEDS AND GAPS important role of cities and approved in 2019 its Sustainable Urban Development Strategy (SUDS). The first component of SURGE’s Serbia program The strategy was followed by an associated action helps assess and diagnose sustainable, low-carbon plan adopted by the Government in March 2021. and resilient urban development needs and gaps For the first time, this establishes a comprehensive for up to ten Local Self Governments (LSGs). The and integrated program supporting the next stage work will also help approximately six LSGs with of development of Serbian cities. It offers Serbia planning and implementing sustainable, low- a unique opportunity to make inroads on green carbon, and resilient urban development programs. transition at the sub-national/ municipal level As potential beneficiaries of the program, a long as also envisaged under the EU Green Deal, as list of Serbian secondary and medium size cities well as on the Bank’s strategic direction for the has been identified. Selection criteria have been post COVID-19 recovery in line with the Green, determined and a final list of selected cities will be Resilient Inclusive Development (GRID) approach. confirmed with Serbia’s Ministry of Construction Transport and Infrastructure and members of the SECO and the World Bank partner for sustainable program’s National Coordination Committee. and resilient Serbian cities. The World Bank and Local and national experts with the required SECO are together supporting the Government of expertise and competencies are currently being Table 5. Serbia-Associated MDTF Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation Comp 1ab— Local support: Improving capacity for resilience, planning and 2.31 0.98 0.98 0.01 1% development Comp 2a— National support: Analytical and Technical Assistance Support to Green, 1.37 0.63 0.63 0.00 0% Livable and Resilient Cities PMA 0.19 0.08 0.08 0.02 24% TOTAL 3.87 1.68 1.68 0.03 2% 41 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) brought on board to support the work. They will OPERATIONAL SYNERGIES be tasked with building the aimed capacity at local levels and delivering the city assessment reports. The Program also aims to establish the basis for the “second generation” urban sustainability GREENING URBAN DEVELOPMENT and resilience reforms and investments building THROUGH A NATIONAL LENS on the mobility infrastructure focus of the Local Infrastructure and Institutional Development The second component of the program aims Bank-financed lending project (LIID) which to address Serbia’s knowledge gaps at national is currently under preparation. Both programs level related to the green and climate-smart are fully complementary and aim to provide a urban and spatial development. The work will medium-term platform for the Bank’s engagement inform Serbia’s policy dialogue toward more at the subnational level in Serbia. inclusive, green, and resilient urban development, including for lagging regions. The program will RESULTS MONITORING AND REPORTING deliver country level diagnostics and evaluate policy options for urban areas in Serbia through The activities funded through the Associated quantitative, spatial, and qualitative analysis. The Serbia MDTF contribute to achieving SURGE work is expected to commence in fiscal year 2022 objectives and outcomes. To track and measure and should result in policy recommendations and results specifically achieved through the MDTF for suggested actions for the national government Serbia, a subset of indicators has been articulated to facilitate the implementation of the SUDS. and was placed under relevant SURGE pillars. It will also inform Serbia’s upcoming spatial As such, it helps shape SURGE overall results development strategy and the future update of the framework. SUDS. The second activity under Component 2 focuses on the Solid Waste Management agenda. A thorough internal review of tentative indicators This activity will focus on helping government revealed the need to simplify and streamline identifying challenges in the municipal solid waste indicators among the different trust funds that management sector by performing a deep dive. encompass the SURGE results framework. This effort will help identify solid waste related Table 6 shows simplified and streamlined results challenges for alignment with EU objectives and indicators that GPURL will rep ort up on for offer support to address the challenges. the Trust Fund Strengthening Sustainable and Resilient Urban Development in Serbia as part RISKS AND MITIGATION of the larger SURGE results framework. The indicators are linked to SURGE Pillar 5 and will The program faces key risks around: (i) – among other things - contribute to achieving Political economy and institutional risk: The the objective “Strengthen cities and regions’ upcoming national elections in 2022 may result resilience to climate change and disasters”. in some changes related to the national level counterparts for the activity; (ii) COVID -19: Starting in FY22, progress on the results The implementation of the program activities i n d i c a t o r s w i l l b e r e p o r t e d a n n u a l l y. To could be affected by the continuing evolution complement the numeric measurement and o f t h e p a n d e m i c . T h e Nat i o n a l a n d L o c a l reporting of results, the program management Governments in Serbia are facing many urgent teams will continue to offer qualitatively results priorities to respond to and there are significant reporting as part of the annual report. human and financial capacity constraints. The risk of counterpart changes due to elections is partly mitigated by the fact that the agreed SUDS Strategy and asso ciated Action Plan will provide an overarching framework for the implementation of the planned activities. To mitigate the p otential COVID -related risks, the WB team is engaging in a programmatic approach to be able to adapt to the evolving Covid-19 circumstances, including in light of competing priorities and capacity constraints. 42 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) STRENGTHENING SUSTAINABLE AND RESILIENT URBAN DEVELOPMENT IN SERBIA 08 Table 6. Indicators for activities funded through the Trust Fund Strengthening Sustainable and Resilient Urban Devel- opment in Serbia, integrated into the SURGE results framework (NOTE: see statement on page 52 related to potential update of the framework) Program Indicators 43 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Output indicators Pilar 5: Urban & Regional Resilience Objective: Strengthen cities and regions’ resilience to climate change and disasters Pillar 5 Indicator I Number of cities/regions with strengthened resilience to climate change and disaster s Pillar 5 Indicator I I Number of new / improved regulations and institutional frameworks that strengthens cities focus on resilience to climate change related disaster s Pillar Outcome Indicators Pillar Output Indicators Outcome O: Urban & regional legal and institutional framework and regulations for resilience and climate change adaptation are improved O.1.1 Number of capacity-building activities completed for policy makers and government entities (Bolivia MDTF, reported per thematic area 17, and Serbia MDTF) O.1 Number of municipalities/cities implementing and/or planning sustainable urban development O.1.2 Number of diagnostics or analytical pieces and resilience investments in line with national completed under priority/thematic areas (Bolivia policies and planning instruments (for Bolivia MDTF and Serbia MDTF 18) PNDIC15, for Serbia SUDS 16) (Bolivia MDTF and Serbia MDTF) O.1.3 Number of local entities in which techni - cal assistance and capacity strengthening activities for improved strategic planning was provided (Serbia MDTF) 15 PNDIC - National Cities Policy of Bolivia 16 SUDS - Sustainable Urban Development Strategy for Serbia 18 Thematic areas for Bolivia include: (i) Disaster risk management and hazard information; (ii) Citizen engagement for planning & development of infrastructure; and (iii) Spatial analysis for resilient/local economic development. 18 For Serbia two priority areas should be completed (sustainable and resilience urban development and/or solid waste management). 44 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 45 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 09 URBAN MDTF FOR SOUTH AFRICA 46 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) URBAN MDTF FOR SOUTH AFRICA 09 S T RU C T U R I N G S U P P O RT F O R S O U T H integrated urban transformation agenda to be AFRICAN CITIES more compact and inclusive. These metros are Cape town, Johannesburg, Tshwane, eThekwini, The Government of South Africa recognizes cities Nelson Mandela Bay, Buffalo City, Mangaung and as the engines of economic growth and aims to Ekurhuleni. make them productive, well-governed, inclusive, and sustainable. To reach that goal, the country The program contributes to the achievement of needs to address several key challenges. One major the overarching SURGE objective, with specific challenge relates to the high level of inequality focus areas under Pillar 1 (City Management, which remains an apparent manifestation of the Governance & Financing), Pillar 2 (Territorial apartheid legacy and produces spatial poverty traps. & Spatial Development) and Pillar 5 (Urban & Poor people often live in densely populated urban Regional Resilience). The trust fund has an overall settlements which are vulnerable to extreme weather budget of approximately US$10.14 million. In events and which offer limited access to services and FY21, US$3.5 million was allocated and approved jobs. Sustainable services, resilient infrastructure across the program’s components. Disbursements and inclusive private sector development are thus and commitments amount to US$1.97 million, or top priorities for the Government of South Africa. 56 percent of the allocated amount (see table 7). Among Government responses to the urban Program results are tracked through indicators challenges in South Africa has been the that had been established before SURGE was establishment of Cities Support Programme created and are therefore considered legacy (CSP). The CSP is a direct response to the South indicators. A selection of these legacy indicators African Integrated Urban Development Framework has b een integrated in the SURGE results (2016), which seeks to steer urban growth towards framework. Table 8 shows the results indicators a sustainable growth model of compact, connected, upon which the Urban MDTF for South Africa will and inclusive cities and towns. The World Bank be reporting as part of the overall SURGE results provides technical assistance to the CSP through framework. an Urban Reimbursable Advisory Services (RAS) agreement with South Africa’s National Treasury SUSTAINABLE PLANNING AND FASTER (NT). SECO supports the CSP team through the BUSINESS PROCESSES Urban MDTF for South Africa. The program has been strategically linked to the RAS with The first component of the Urban MDTF for complementary activities to support the CSP. The South Africa focuses on strengthening the urban trust fund was officially signed on August 2020 financing framework of national, provincial and and later associated with SURGE. It aims to build local governments. The component integrates the capacity of the eight metros to promote an fiscal and financial sustainability issues in metro Table 7. South Africa Associated MDTF Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation Comp 1— Effective and Sustainable Fiscal and Urban Financing and Strengthened 1.37 0.50 0.50 0.39 78% Governance Capabilities Comp 2— Water Resilience Only 0.55 0.55 0.22 41% Comp 2— Sustainable and Climate Resilient 6.07 Infrastructure and Land Planning and 1.44 1.44 0.86 60% Delivery Comp 3— Capacity and Relevant Business Process Reforms at City, Regional and 2.19 0.58 0.58 0.32 55% National Levels PMA 0.51 0.42 0.42 0.16 39% TOTAL 10.14 3.50 3.50 1.97 56% 47 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) planning and strengthens governance capabilities. defaulting and droughts. Water availability and The program will work with cities on transversal safety challenges in informal settlements are a management and change management, and an particular area of concern. The CSP team plans to intergovernmental fiscal review is being drafted. help cities address the issues and to align the water The report’s sections covering revenues and related work with the broader work on informal expenditures are with the South Africa’s National settlements within the CSP. Additional work has Treasury (NT) for review. Additionally, asset been initiated on tariff reviews. management experts are brought onboard to help roll out a Cities Infrastructure Delivery & Work on the last comp onent of the S outh Management System (CIDMS) across eight metros. Africa program focuses on improving business processes to drive inclusive, social and economic Component 2 of the program supports sustainable development at city, regional and national levels. and climate resilient infrastructure and land Efforts to improve property registration has resulted planning and delivery. Integration of climate in improved turnaround times for electronic Rates response into national systems is being delivered Clearance Certificates. For construction permitting, by the team through several work streams. The first the focus has been on e-permitting systems, end-to- stream is linked to the CIDMS work undertaken end business process optimization and automation. under component 1 (see previous paragraph). For The creation of e-permitting systems has created this, a review and report on how to embed climate a sense of ownership within the metros, resulting response into the CIDMS is underway. in improved workflows and improved turnaround times for e-permitting. The program also undertook The second workstream integrates climate 139 support activities, organized five learning resilience through capital projects appraisal events, and co-hosted a private sector engagement guidelines. The World Bank recently presented a session. These activities reached approximately resilience rating methodology to National Treasury 872 stakeholders. Budget Office to inform the development of the appraisal guidelines. Work conducted on spatialized economic data helps inform city planning and investments. A Other climate integration efforts focus on catalytic draft report was discussed with stakeholders in May land development program guidelines. The work is 2021 and will be finalized later in 2021. being aligned with the support provided to metros on project preparation and financing, to capitalize A review of public sector incentives is also ongoing. on the engagement with the metros and hands-on It aims to identify and understand public sector experience within resilient project preparation. A incentives in terms of how they could be utilized to four-day long workshop was convened on resilient support city spatial transformation and inclusive capital investment in December 2020 with over growth goals and how they intend to, and can, 80 participants. City scans that were developed for leverage the economic potential of the cities to each of the metros served as conversation starters drive national economic development outcomes. for cross sectoral discussions on resilience. After Engagements were undertaken with a wide range of the workshop, metros submitted expression of stakeholders, including focus group discussions in interest (EoIs) for technical assistance. Thirteen the City of Cape Town and eThekwini, to evaluate (13) EoIs were received and additional resources existing incentive regimes. The review will be from the Global Infrastructure Facility (GIF) were completed within the coming months. mobilized. The World Bank and CSP prioritized project preparation support to eight projects. These IMPLEMENTATION CHALLENGES include Public Private Partnerships (PPP) projects in eThekwini, Johannesburg and Buffalo City Over the summer of 2021, South Africa will begin and land-value captured projects in Cape Town, preparations for the planned election. These Ekurhuleni, Tshwane and Mangaung. The technical elections could affect project implementation assistance is expected to start in September 2021. should political priorities change within new city administrations, or through increased To enhance cities’ water resilience, a series of insecurity. Mitigation measures have been put in virtual assessments and brainstorms have been place, including careful planning of workshops completed with eThekwini, Johannesburg and and planned high level government engagement Mangaung. The cities struggle with water systems with the incoming city counterparts in an effort 48 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) URBAN MDTF FOR SOUTH AFRICA 09 to emphasize the importance of sustaining the Framework (IUDF). The technical assistance that is ongoing reform agenda. It is also noted that the being delivered through WB Urban MDTF for South technical nature of the program’s activities should Africa is directly supporting the implementation of help to sustain implementation. Other program- the CSP and derives its strength from this strong wide implementation challenges remain related to alignment with country priorities. Through the pandemic with travel remaining limited, thus a this longstanding partnership with the CSP, a continued reliance on virtual engagements which proposed implementation support program for can at times prohibit expected progress. South Africa’s 39 medium sized or intermediate city municipalities has been formulated to further OPERATIONAL SYNERGIES advance the IUDF, with a focus on stable municipal governance, sound integrated spatial planning, Through the active leadership of the National aligned capital investment planning, robust budget Treasury the CSP has an important role to play in execution as well as sound revenue management enabling intergovernmental collaboration on urban and expenditure control, all leading to improved development in large cities and is directly linked creditworthiness for South Africa’s cities. to South Africa’s Integrated Urban Development Table 8. Indicators for activities funded through the Urban MDTF for South Africa, integrated into the SURGE results framework (NOTE: see statement on page 52 related to potential update of the framework) Program Indicators Pilar 1: City Management, Governance & Financing Pillar Outcome Indicators Pillar Output Indicators 49 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Pilar 2: Territorial & Spatial Development Objective: Spur equitable regional and local development Pillar 2 Indicator Number of cities/regions which spurred equitable regional and local development Pillar Outcome Indicators Pillar Output Indicators Outcome F:City planners and policymakers have access to improved city-level data and analytics to inform urban policy and investment planning F.1 Laws, policy documents, sector plans, action F.1.5. Policy recommendations for national plans, or other procedures related to urban planning economic development incentives that recognize are initiated and/or improved at the national or and support the pivotal role of cities in the sub-national level (# of laws, policies, plans or national economy (# of reports) (South Africa procedures) (Anchor TF & South Afric a MDTF) MDTF) Pilar 5: Urban & Regional Resilience Objective: Strengthen cities and regions’ resilience to climate change and disasters Pillar 5 Indicator I Number of cities/regions with strengthened resilience to climate change and disaster s Pillar 5 Indicator I I Number of new / improved regulations and institutional frameworks that strengthens cities focus on resilience to climate change related disaster s Pillar Outcome Indicators Pillar Output Indicators Outcome O: Urban & regional legal and institutional framework and regulations for resilience and climate change adaptation are improved O.2 Number of metros that develop new or improve O.2.1 Number of diagnostic reports [on water] existing strategies to respond to water risks (South developed for metros (South Afric a MDTF) Africa MDTF) 50 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 51 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 10 SUMMARY OF SUMMARY PROGRES PR S BY OGRESS RESULTS PILLAR OF RESULT FRAMEWORK AM FRAM NOTE March 2022: the World Bank and SURGE's founding donor SECO are discussing a potential update of the SURGE Results Framework as reflected in this report. 52 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SUMMARY OF PROGRESS BY PILLAR OF RESULTS FRAMEWORK 10 SURGE monitors progress towards achieving Indicators are only defined for pillars and out- its development objective by tracking results comes with committed funding streams. Pillar 1 indicators. The results indicators together make up (City Management, Governance & Financing), the SURGE results framework. It features indicators Pillar 2 (Territorial & Spatial Development) and at program level and at pillar level - reflecting Pillar 5 (Urban & Regional Resilience) have active the pathways of how the overarching SURGE funding streams. Their indicators are presented development objective will be achieved. in three tables, for each pillar one table. A fourth table shows the overarching program indicators. The program indicators measure aggregate results Altogether, the four tables contain 41 indicators for the entire umbrella program. This means that and make up the SURGE Results Framework. all activities funded through SURGE will report upon these indicators, hence all activities funded In this chapter, we present the framework and through the associated and anchor trust funds. the cumulative results achieved by SURGE up to The program indicators also monitor progress on June 30, 2021. These results were compiled from SURGE’s crosscutting themes of gender and FCV. activities funded through the Anchor MDTF and the Urban MDTF for South Africa. The country The pillar indicators measure activities’ con- programs in Bolivia, Serbia and Peru started only tributions towards achieving the objectives and recently and will commence results reporting next outcomes of pillars. Only the country program or the fiscal year. For some indicators it is too early to anchor trust fund to which a specific indicator refers report results. Furthermore, select indicators were will report on the relevant indicator. They are logically introduced after the first data gathering cycle was folded under the SURGE pillars for which the activity completed, hence results for those indicators will be helps achieve the pillar’s development objective. reported starting next fiscal year. Table 9. SURGE Program Indicators – Part 1 (of 4) of the SURGE Results Framework SURGE Results Framework Objective: Enable cities and regions in developing countries to function as drivers of sustainable and inclusive economic development Program Indicators Score 59 (1 in FCS) New (indicator introduced after FY21 data gathering cycle was completed New indicator (indicator introduced after FY21 data gathering cycle was completed) USD 1,615,000 2 projects USD 200 million Too early to report 53 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) CUMULATIVE PROGRAM RESULTS Tshwane, Thekwini, Nelson Mandela Bay, Buffalo City, Mangaung, and Ekurhuleni now undertake In total, 59 cities benefitted from SURGE support long term financial planning. The six metros up to June 30, 2021. This includes cities from all have long term financial strategies in place with regions, for example Lagos in Nigeria, five cities in a set of recommendations on corrective steps Uzbekistan (Karchi, Namangan, Kasansay, Piskent, municipalities could take to enhance long-term and Akhangaran) and in Costa Rica the cities of financial sustainability. Alajuelita, Desamparados, and Aserri. The cities mostly benefit at this early stage from the new Lagos benefited from a revenue deep dive activity of knowledge they gained through diagnostics work which results were shared with the Department of and related workshops. Many SURGE supported Budget and Economic Development Planning and activities will move into a technical assistance the Lagos Internal Revenue Service. It helped them phase in the upcoming fiscal year, from which more improve their capacity of revenue collection. in-depth benefits are expected for the cities. In the Philippines, city officials from Iloilo, Iligan, As presented in table 9, the cumulative results Baguio, Bacolod, and Naga expressed that they a t p r o g r a m l e ve l a l s o s h o w t h a t o n g o i n g acquired new knowledge on green and resilience activities have mobilized additional financing, planning. They acquired this new knowledge including through a US$ 950,000 partnership through SURGE supported knowledge sharing with PROBLUE that will supp ort the S olid workshops in which experts presented international Waste Management (SMW) sector and reduce best practices on green and resilience planning. The plastic waste in Lagos. In South Africa, additional workshops focused on land use planning, flood and resources (US$ 490,000) were mobilized from climate risk management, smart city management, the Global Infrastructure Facility (GIF) following and green urban regeneration. Results indicators a workshop on resilient capital investments in for Pillar 1 are shown in Table 10. December 2020. The SURGE supported work in Nepal triggered funding ($125,000) from the C UMU L AT I V E R E S U LT S FO R P I L L A R 2 : Quality Infrastructure Investment Partnership Trust TERRITORIAL & SPATIAL DEVELOPMENT Fund to assess the status and gaps in municipal service delivery in selected secondary cities in key S eve ra l SU RGE g ra n t have c o n t ribu ted to economic growth clusters. The Kathmandu Valley more equitable regional and local development is one of three clusters that will be assessed. The through diagnostics, technical reports, trainings, activity in Uzbekistan received additional financing workshops, and policy recommendations related (US$50,000) from the World Bank to increase its to urban planning at both the national and scope. subnational level. The results achieved through the activities have Cities in general have benefited from a deep dive also increased the knowledge and capacity of study that resulted in a flagship report: From governments related to their portfolio of planned Pancakes to Pyramids: City Form to Promote and ongoing urban development projects – whether Sustainable Growth, launched virtually in June financed by the World Bank or through other 2021. The report gives leaders new tools for sources. An example of this is Uzbekistan where investigating the combined effects of economic the funded activities are providing additional drivers and policy choices on a city’s developments. evidence and helping advance the dialogue with The study found that the most successful urban the Government counterparts. Moreover, analysis areas are those that connect their growth to funded by the grant informed the Government economic demand and then support this with in the design of the Additional Financing for the comprehensive plans, policies, and investments Medium Size Cities Integrated Urban Development that help avoid uncontrolled sprawl. Project. The technical work currently being undertaken in CUMULATIVE RESULTS FOR PILLAR 1: CITY Vietnam is directly feeding into the preparation MANAGEMENT, GOVERNANCE & FINANCING of the Southeast Socio-Economic Regional plan being undertaken by the Ministry of Planning SURGE activities resulted in improved financial and Investment. Romania, has been conducting and urban planning in twelve metro areas. The research for the Urbanization Review in parallel South African metros of Cape Town, Johannesburg, to a RAS engagement with the Ministry of Public 54 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SUMMARY OF PROGRESS BY PILLAR OF RESULTS FRAMEWORK 10 Table 10. Pillar 1 Indicators – Part 2 (of 4) of the SURGE Results Framework Pilar 1: City Management, Governance & Financing 12 Pillar Outcome Indicators Score Pillar Output Indicators Score Too early A.1 Policy and planning instruments by TA program approved for implementation in Too early selected municipalities and Government entities (Bolivia MDTF; Baseline: 0 in 2020; Target: 4 Too early by 2024). Too early 6 6 Outcome B: Municipal Own Source Revenues (OSR) and Property Tax Systems are improved B.1 Model to apply Land Value Capture B.1.1 Proposal(s) for the application of LVCs Too early instruments (LVCs) instruments tested (yes/no) and land management instruments, to promote Too early (Peru MDTF; Baseline: No; Target: Yes) urban regeneration, transport, or social housing development (Peru MDTF) B.2 Urban observatory implemented by relevant B.2.1 Options for institutional arrangements, Too early Ministry (for Peru: Ministry of Housing, operational models, and procedures to implement Too early Construction and Sanitation, MVCS) (yes/no) an urban observatory at the local/national level (Peru MDTF; Baseline: No; Target: Yes) assessed (yes/no) (Peru MDTF; Baseline: No; Target: Yes) Outcome C: Cities have strengthened institutions and improved management capacities C.1 Capacity building strategy for cadaster C.1.1 Capacity building strategy for cadaster- related functions adopted by government Too early related functions for subnational governments designed (yes/no) (Peru MDTF Baseline No; Too early (Peru’s MVCS/ COFOPRI for Peru (yes/no) (Peru MDTF; Baseline: no; Target: yes) Target: Yes) C.2.1 Proposal for institutional and organizational C.2 Capacity building strategy for cadaster strengthening on urban cadaster matters related functions adopted by government (including the use of cadaster for property Too early (Peru’s MVCS/ COFOPRI for Peru (Peru Too early valuation, urban management, and disaster risk MDTF)) (yes/no) management) submitted (yes/no) (Peru MDTF; Baseline No; Target: Yes) Works to develop the Romania Urban Policy. the policy, this work is considered supporting and Even if it did not directly inform the drafting of complimentary towards implementation of the 55 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) policy (i.e. focus on neighbourhoods of concern, Training and workshops are also contributing to reinforces messaging around a typology of cities local development. The Lagos State Government with diverse needs – growing vs. shrinking, and re- has been engaging in diverse training related to solid inforces the need for a focused capacity building waste management, solar and renewable energy, as program for cities). In South Africa, a draft report well as Bankable project technical discussion with for (Johannesburg , C ap e Town, eThekwini, the Ministry of Budget and Economic Planning. Tshwane, and Ekurhuleni) is being prepared on In the Philippines workshops have been completed the review of public sector incentives. in all five cities. These workshops aimed to help Table 11. Pillar 2 Indicators – Part 3 (of 4) of the SURGE Results Framework Pilar 2: Territorial & Spatial Development Objective: Spur equitable regional and local development Pillar 2 Indicator Number of cities/regions which spurred equitable regional and local development Pillar Outcome Indicators Score Pillar Output Indicators Score Outcome E: Governments have improved Spatial Development Planning & Investment Prioritization capacities Too early Too early Outcome F: City planners and policymakers have access to improved city-level data and analytics to inform urban policy and investment planning 4 Too early F.1 Laws, policy documents, sector plans, action plans, or other procedures related to urban planning are initiated and/or improved at the 5 17 national or sub-national level (# of laws, policies, plans or procedures) (Anchor TF & South Africa MDTF) 1 1 F.2.1 Knowledge sharing events and discussion forums where SURGE supported technical/ Too early analytical/diagnostic work is presented / discussed F.2 Awareness of SURGE activities generated (# of events and forums) (Anchor TF) through dissemination activities (yes/no) Too early (Anchor TF) F.2.2 Active and up-to-date SURGE website, incorporating / linking to associated trust funds Too early (yes/no) (Anchor TF) F.2.3 Downloads of reports and analytical work generated by SURGE (#) (Anchor TF) Too early 56 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) SUMMARY OF PROGRESS BY PILLAR OF RESULTS FRAMEWORK 10 characterize the economic drivers for growth, water resilience assessment. It identifies policy and development vision and strategies, development reform priority areas, around which to mobilize o p p o r t u n i t i e s , c h a l l e n g e s a n d c o n s t ra i n t s , stakeholders from different levels of government. spatial development, and urban character for As of June 2021, it was being finalized and peer each participating from the green and resilience reviewed. It has drawn on all metros, with more perspective. Results indicators for Pillar 2 are detailed work in Cape Town, eThekwini and Nelson shown in Table 11. Mandela Bay. The report provides a sound basis for dialogue on water sector transformation in South Implementation of the communications strategy Africa’s cities. Briefings are planned with National is expected to start in FY22. As part of the next Treasury, cities and other stakeholders. Annual Report, covering FY22, indicators related to communication and dissemination will be reported. Additionally, in Ethekwini, an initial draft tariff review report has been shared with the city. The C UMU L AT I V E R E S U LT S FO R P I L L A R 5 : work will inform approaches to secure sustainable URBAN & REGIONAL RESILIENCE finances for service delivery. SURGE helps South Africa’s cities to enhance Several other SURGE activities are also supporting their water resilience. A draft Water Resilience cities in building resilience. They are however Policy, Institutions and Regulations report was at early implementation stages, and therefore developed with support from SURGE’s associated expected to report results in future reporting cycles. Urban MDTF for South Africa. The review covers Pillar 3 results indicators are presented in Table 12. 8 metro areas and provides a cross-cutting urban 57 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Table 12. Pillar 5 Indicators – Part 4 (of 4) of the SURGE Results Framework Pilar 5: Urban & Regional Resilience Objective: Strengthen cities and regions’ resilience to climate change and disasters Pillar 5 Indicator I Number of cities/regions with strengthened resilience to climate change and disaster s Pillar 5 Indicator I I Number of new / improved regulations and institutional frameworks that strengthens cities focus on resilience to climate change related disaster s Pillar Outcome Indicators Score Pillar Output Indicators Score Outcome O: Urban & regional legal and institutional framework and regulations for resilience and climate change adaptation are improved O.1.1 Number of capacity-building activities completed for policy makers and government entities (Bolivia MDTF; Too early Baseline: 0; Target 1, reported per thematic area 21, and Serbia MDTF; Baseline: 0; Target: TBD) O.1.2 Number of diagnostics or analytical pieces completed under priority/thematic Too early areas (Bolivia MDTF; Baseline: 0; Target: 2 and Serbia MDTF 22 Baseline: 0; Target: >2) O.1.3 Number of local entities in which Too early technical assistance and capacity Too early strengthening activities for improved strategic planning was provided (Serbia MDTF; Baseline: 0; Target: >5) O.1.4 Platform and Action Plan for implementation of national cities policy is Too early adopted (Bolivia MDTF; Baseline: 0 in 2020; Target: 1 by 2024) O.1.5 Number of national planning and budgeting tools incorporating resilience in Too early urban areas developed (Bolivia MDTF; Baseline: 0 in 2020; Target: 2 by 2024) O.2 Number of metros that develop new O.2.1 Number of diagnostic reports [on or improve existing strategies to respond Too early water] developed for metros (South Africa Too early to water risks (South Africa MDTF) MDTF) 19 PNDIC - National Cities Policy of Bolivia 20 SUDS - Sustainable Urban Development Strategy for Serbia 21 Thematic areas for Bolivia include: (i) Disaster risk management and hazard information; (ii) Citizen engagement for planning & development of infrastruc- ture; and (iii) Spatial analysis for resilient/local economic development. 22 For Serbia two priority areas should be completed (sustainable and resilience urban development and/or solid waste management. 58 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 59 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 11 FINANCIAL OVERVIEW 60 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) FINANCIAL OVERVIEW 11 This chapter provides financial information 2 (technical assistance26) in 10 countries. More concerning the SURGE global Anchor MDTF specifically, US$1.02 million has been approved and the four associated country MDTFs related to for 10 activities under component 1, and US$0.39 donor contributions, approvals and disbursements million for one phase 2 activity under component of activities, and Program Management and 2 (in Costa Rica). US$700,000 was the approved Administration (PMA) costs. This financial report amount for the two deep-dive studies under covers a 20-month period, from TF inception in component 327 and US$250,000 was allocated November 2019 through June 2021. During this to PMA–bringing the total approved amount to period, across the SURGE TFs US$12 million of US$2.4 million. The component 428 budget for the total US$30 million budget has been approved outreach, communication, and coordination for activities, and US$4.3 million has b een has been allocated but the activity has not been disbursed or committed. created yet. There has been a strong increase in disbursements and commitments under the global DONOR CONTRIBUTIONS TO THE SURGE Anchor MDTF, from US$44,000 in the period UMBRELLA PROGRAM from inception to June 2020 (the period covered by the previous Annual Report) to US$1.51 million Total donor contributions to the SURGE Anchor from inception to June 2021. Table 14 and Figure MDTF and associated Funds received through A show the current allocations, approval status and June 30, 2021, amount to US$17 million–out of expenditures of the components. the US$30 million overall funds committed by the Swiss State Secretariat for Economic Affairs The reason for the differences between the (SECO) – see Table 13. allocated amounts and the overall budget is that, in consultation between the World Bank and SECO, OVERVIEW OF THE SURGE GLOBAL ANCHOR the number of activities under component 1 and 2 MDTF ALLOCATIONS AND ACTIVITY was increased from the initially proposed 10 to 13 – PORTFOLIO of which 10 have been activated thus far. The overall amount for these two components (US$4.9 million) Since trust fund inception in November 2019, has not changed, although as shown in Table 14 the US$1.41 million has been approved for 11 allocated amount as of June 30, 2021, amounts to activities under components 1 and 2, representing US$4.66 million–the remaining US$240,000 comes the sequence Phase 1 (urbanization reviews25) and from a grant reduction that is yet to be reallocated. Table 13. Overview of Donor Contributions to SURGE Overview of Donor Contributions Amount pledged Amount pledged Amount received Amount pending Investment to SURGE (millions CHF) (millions US$)23 (millions US$) (millions US$) income (m US$) Switzerland (SECO) SURGE Anchor MDTF - 6.0 5.0 1.0 0.048 Associated TFs total 20.9 24.0 12.0 12.0 0.016 Bolivia 4.0 4.4 2.3 2.2 0.003 Peru 5.0 5.5 2.3 3.3 0.003 Serbia 3.5 3.9 1.7 2.2 0.002 South Africa 8.4 (m USD 0.924) 10.1 5.8 4.4 0.007 Total SURGE amounts - 30.0 17.0 13.0 0.064 23 CHF to USD exchange rate of June 30, 2021. 26 Original title of legacy SUD II component 2: A “value chain” approach to 24 In addition to the CHF 8.4m contribution from SECO, US$886,853.48 support urban development (remaining funds from a closed SECO-funded trust fund in South Africa) 27 Original title of legacy SUD II component 3: Frontier policy Issues in was transferred from SECO’s Donor Balance Account to the South Africa urban development. Trustee upon signature of the Administration Agreement. 28 Original title of legacy SUD II component 4: Outreach, communication, 25 Original title of legacy SUD II component 1: Examining Sub-national and coordination urban development from a national perspective. 61 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) In terms of fund usage, respectively 70 percent and Since trust fund inception (ranging from June 2 percent of the component 1 and 2 allocations to December 2020), US$8.92 million has been has been disbursed or committed, which shows approved for technical components of the four progress as expected given that these components associated country MDTFs, divided over 12 activities/ correspond with Phase 1 and 2 of country level components. The total PMA approved budget for the activities. Fund usage under component 2 is four associated MDTFs amounts to US$0.73 million. expected to increase exponentially in FY22. Under Table 15 and Figure B show the current allocations, component 3 (deep dive activities), 62 percent of approval status and expenditures of the components. the allocation has been disbursed or committed, More detailed financial information at component and 66 percent of the PMA allocation has been level is included in the respective country chapters. used. The activities under component 4, related to outreach and communication, are expected to In terms of fund usage, 29 percent of the allocations gear up in the coming year as early results will be to technical components of the four associated disseminated and communicated through the new country programs has been disbursed or committed, SURGE website and other media. and 28 percent of the allocated PMA allocation. The South Africa program cover the lion share of OVERVIEW OF THE SURGE-ASSOCIATED the expenses thus far, given that it started earlier in COUNTRY MDTF ALLOCATIONS AND FY21 than the other three country programs. ACTIVITY PORTFOLIO Table 14. SURGE global Anchor MDTF Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation Comp 1 1.00 1.22 1.02 0.85 70% Comp 2 3.90 3.44 0.39 0.05 2% Comp 3 0.70 0.70 0.70 0.44 62% Comp 4 0.15 0.15 - PMA 0.25 0.25 0.25 0.17 66% TOTAL 6.00 5.76 2.36 1.51 26% Figure A. SURGE Global Anchor MDTF Financial Overview 4.5 4 3.5 3 2.5 2 OVERALL 1.5 BUDGET ALLOCATED 1 AMOUNT APPROVED 0.5 AMOUNT DISBURSED + 0 COMMITTED Comp 1 Comp 2 Comp 3 Comp 4 PMA 62 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) FINANCIAL OVERVIEW 11 Table 15. SURGE Associated MDTFs Financial Overview (as of June 30, 2021) Overall Allocated Approved Disbursed + Committed (in millions, USD) Budget Amount Amount (millions, USD) % of allocation 22.78 8.92 8.92 2.56 29% 1.19 0.73 0.73 0.20 28% 23.98 9.66 9.66 2.76 29% Figure B. SURGE Associated MDTFs Financial Overview 25 20 OVERALL 15 BUDGET ALLOCATED 10 AMOUNT APPROVED 5 AMOUNT DISBURSED + 0 COMMITTED OVERALL ALLOCATED APPROVED DISBURSED + BUDGET AMOUNT AMOUNT COMMITTED OVERALL SURGE PROGRAM MANAGEMENT amounts to US$0.37 million, equal to 9 percent of AND ADMINISTRATION (PMA) COSTS the total SURGE disbursements and commitments. As common in trust-funded programs, many PMA costs are incurred by the SURGE Team initial expenses are primarily geared to program related to the governance arrangements of the management and administration, related to the program. These include expenditures on general design, and set up of the program structure and program management, monitoring and evaluation, procedures and reviewing EoIs and proposals. and donor coordination, among others. Total The program has set limitations in the financial PMA disbursements and commitments from the systems to ensure that PMA spending cannot SURGE global Anchor MDTF and associated go over 5 percent of the total SURGE Umbrella country programs from inception to June 30, 2021, contributions. 63 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 12 LOOKING AHEAD 64 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) LOOKING AHEAD 12 Now that SURGE has been set-up and country infor mat ion management . Bas ed u p o n the programs are incorporated under the umbrella, findings of an assessment of government cadastral its focus can shift from building the program’s capabilities, the team intends to provide technical foundation towards implementation and growth. assistance for the design of a national capacity A detailed work plan has b een prepared for building strategy in urban cadaster-related topics. FY22 illustrating next steps for each trust fund Additional work in Peru will focus on supporting encompassing SURGE. In this section of the the Ministry of Housing , C onstruction, and annual report, a summary of the workplan is Sanitation on the design of Land Value Capture presented. Table 16 shows the FY21 and proposed (LVC) instruments and an urban observatory. FY22 allocations for each Trust Fund. The activities will be linked to Peru’s efforts to regulate the recently enacted Sustainable Urban As overarching activities, the program manage- Development Law, which establishes LVCs as well ment team plans to engage in fundraising and as an urban observatory. dissemination efforts to grow SURGE’s impact. Based upon an initial donor mapping exercise, In FY22, the SURGE’s associated Serbia program the team will engage with potential new partners will help assess and diagnose urban development to explore collaboration options. It will also start needs and gaps for up to ten cities. The list of selected implementation of the SURGE communication cities will be confirmed with Serbia’s Ministry of and visibility plan. This includes the development Construction Transport and Infrastructure and of a SURGE website, pro duction of SURGE members of the programs Steering Committee. promotion material, the dissemination of the Additionally, a deep dive on municipal solid lessons from SURGE supported activities, and waste management will be undertaken to improve more (related to legacy SUD II component 4). performance in alignment with EU objectives. The SURGE’s anchor Trust Fund will focus As the Urban MDTF for South Africa moves in FY22 on building cities’ capacity to deliver into FY22, its work on climate resilient asset dynamic, inclusive, and sustainable cities. Once management will continue to progress. The work project teams complete their up-stream diagnostics involves Cape Town, Johannesburg, Tshwane, work, they will move their focus towards building eThekwini, Nelson Mandela Bay, Buffalo City, city government capacity to deliver upon the Mangaung and Ekurhuleni. The team’s focus priorities identified in urbanization reviews. will b e drawn towards Cities Infrastructure This will be done through technical assistance Development Management Systems (CIDMS) – and capacity strengthening that will help cities moved from component 2 to component 1, and to go from problem identification to strategy to strengthening metropolitan municipalities’ development, to operationalization. The regional capacities to manage infrastructure projects and MENA activity and the city engagements in make them sustainable. The coming year, the team Angola, Costa Rica, Nigeria, Madagascar, Nepal, will also focus on creating spatialized economic Philippines, Romania, Uzbekistan and Vietnam data that can be monitored and reviewed to will move into this next phase (SUD II’s legacy build a sustainable economy. Additionally, the component 2) in FY22. team will continue to work on creating a change management process that can be institutionalized. Global work on frontier policy issues in urban development (legacy SUD II Component 3) will also T h e B o l i v i a U r b a n R e s i l i e n c e Te c h n i c a l continue under SURGE’s anchor Trust Fund the Assistance Program will in FY22 strengthen coming year. A deep dive that looked at the shape of Santa Cruz’s and La Paz’s capacities to engage cities growth was completed, but the analytical piece with citizen and better manage flood risks. that provides insights on how to anticipate economic It will also help the cities develop Municipal impact of urban infrastructure will continue in FY22. Climate Action Plans and identify options to leverage private capital for urban development. The associated Trust Fund focused on improving Additionally, the program will support Santa urban planning and cadasters in Peru, plans the Cruz and La Paz to review their municipal budget coming year to assist the Peruvian Government for resilience and design innovative budget in the development of a Land Administration mechanisms. At national level, the program plans Domain Model (LADM). The team will also work to support the national government to promote with government authorities and stakeholders and operationalize a national framework for urban on agreements for the standardization of land resilience. 65 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) Table 16 : SURGE FY21 and Proposed FY22 Allocations by Trust Fund (US$ millions) Total Actual & Proposed Allocations thru FY21 Proposed Allocations FY22 Allocations Activities Activities Activities Comp’s PM&A Total 29 Comp’s PM&A Total29 Comp’s PM&A Total 29 SURGE Anchor MDTF 5.75 0.25 6.00 5.51 0.25 5.76 0.24 - 0.24 TF073394 Bolivia MDTF 4.22 0.22 4.44 2.10 0.11 2.21 0.72 0.04 0.76 TF073571 Peru MDTF 5.25 0.28 5.53 2.14 0.11 2.26 1.04 0.05 1.09 TF073594 Serbia MDTF 3.68 0.19 3.87 1.61 0.08 1.68 1.56 0.08 1.64 TF073593 South Africa MDTF 9.63 0.51 10.14 3.08 0.42 3.50 2.14 0.09 2.23 TF073516 Total SURGE Umbrella 28.53 1.45 29.98 14.43 0.98 15.42 5.70 0.26 5.96 29 Total amounts are based upon more recent currency exchange rates and may therefore slightly differ from the original indicate budgets 66 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 67 2021 Sustainable Urban and Regional Development Annual Report Umbrella Program (SURGE) 13 ANNEXES 68 2021 Annual Report Sustainable Urban and Regional Development Umbrella Program (SURGE) ANNEXES 13 Annex 1: Key Umbrella Program Information DATA SHEET SURGE SUSTAINABLE URBAN & REGIONAL DEVELOPMENT (SURGE) UMBRELLA PROGRAM - TF073394 STRENGTHENING URBAN CADASTERS FOR URBAN GOVERNANCE IN PERU MDTF - TF073594 102-Dec-2020 / 30-Apr-2026 Urban Global Partnerships Unit Gabriel Arrisueno Fajardo, Senior Urban Specialist BOLIVIA URBAN RESILIENCE TECHNICAL ASSISTANCE PROGRAM - TF073571 23-Nov-2020 / 31-Jan-2025 Urban Global Partnerships Unit Paula Restrepo, Senior Urban Specialist Jack Campbell, Senior Disaster Risk Management Specialist STRENGTHENING SUSTAINABLE AND RESILIENT URBAN DEVELOPMENT IN SERBIA - TF073593 URBAN MULTI-DONOR TRUST FUND FOR SOUTH AFRICA - TF073516 06-Aug-2020 / 31-Oct-2024 Urban DRM AFR East and South 2 Eric Dickson, Senior Urban Specialist 69 2021 Sustainable Urban and Annual Regional Development Report Umbrella Program (SURGE)