For many client cities around the world designing attractive investments remains a challenge. As such there is a strong demand from cities to support upstream work to help prioritize resilience in their long-term planning.
CRP cooperates with partners who have an interest in urban development and disaster risk management, and priorities in financing efforts aimed at urban resilience, capital mobilization, private sector development and innovation.
The Program supports activities which expand partnerships for urban resilience, including promoting technical and financial collaboration across World Bank Group units; outreach to International Finance Institutions (IFIs), development partners, private sector investors, technology firms and other urban resilience actors.
In Focus: Resilient City Development (RECIDE)
The markets of most CRP target cities are often not sufficiently developed to enable the flow of capital into infrastructure projects. While there may be strong interest to invest, investors find it difficult to deploy their capital because transaction opportunities are sporadic, unpredictable, and widely dispersed across sectors. Several market barriers make transaction costs higher than desired returns. A prevailing lack of risk data and transaction track records increases potential stakeholders’ hesitation to invest.
To address this issue, over the past year, the CRP has started to work on supporting de-risking mechanisms, namely guarantees for incentives for private sector participation, under the Resilient City Development Program (RECIDE), a partnership in preparation between the Spanish Development Agency (AECID) and the World Bank.
RECIDE is an effort to assist city governments in African and EU Southern Neighborhood countries to build greater resilience to climate and disaster risks and to attract more private sector financing solutions, with a priority around investments in flood protection, solid waste management, sustainable transport, and sustainable energy. The program attempts to target situations where infrastructure gaps represent untapped opportunities for private-sector engagement, provided that an appropriate investment planning and risk mitigation platform is in place.