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This presentation was held during the 5th GIB
Summit, May 27-28 2015. The presentation and
more information on the Global Infrastructure Basel Foundation are available
on www.gib-foundation.org
The next GIB Summit will take place in Basel, May 24-25, 2016.
The information and views set out in this presenation are those of the author(s) and do not necessarily reflect the opinion of the Global Infrastructure Basel Foundation. Neither the Global Infrastructure Basel Foundation nor any person acting on its behalf may be held responsible for the use of the information contained therein.
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Four Points
1. The goal should not be to build resilient infrastructure. The goal should be to build infrastructure that enhances urban resilience.
2. Infrastructure that enhances urban resilience can generate mul?ple co-‐benefits to the city overall.
– This broader public value is an externality not fully captured by the investor. – To the extent that this value is a public good, the public sector should subsidize
any incremental cost associated with designing and building resilience enhancing infrastructure.
3. It is difficult to fully measure the broader value or co-‐benefits because it is difficult to quan?fy (resilience) linkages across different urban systems.
– We need beNer tools to measure posi?ve and nega?ve resilience linkages.
4. If we can beNer measure these valuable externali?es/co-‐benefits, we can unlock new sources of funding to pay for more and beNer infrastructure.
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Let’s clarify
Resilient Infrastructure Urban Resilience Urban Resilient Infrastructure
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Let’s clarify
Urban Resilience
The capacity of a city (individuals, communi8es, businesses, ins8tu8ons, urban systems) to survive and thrive in the face of acute shocks and chronic stresses
Urban Resilient Infrastructure
Characteris?cs of Urban Resilience • Flexible • Robust • Diversified • Inclusive • Coordinated • Reflec?ve
Adapted from the Rockefeller Founda?on, the World Bank, and Dalberg research
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We take a broad perspec<ve on shocks and stresses
Adapted from the Rockefeller Founda?on 100 Resilient Ci?es, World Bank CityStrength, and Dalberg research
Shocks – typically acute events • Fires • Heat waves • Disease outbreak . . .
Stresses – typically more chronic condi<ons • Social exclusion • Limited access to water/sanita?on • Lack of affordable housing . . .
• Floods • Earthquakes • Terrorism / Riots
• Poverty / Inequality • Economic exclusion • High crime
Not only climate resilience
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Let’s clarify
Resilient Infrastructure
Infrastructure that is able to maintain its func?on (survive and thrive) under a range of shocks and stresses
Urban Resilient Infrastructure
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These concepts are connected
Urban Resilience
Resilient Infrastructure
• Economic systems
• Social capital • Community systems
• Governance and leadership
• Not good enough • May actually be bad
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In prac<ce, these concepts are likely very connected
Urban Resilience
Resilient Infrastructure
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In prac<ce, these concepts are likely very connected
Urban Resilience
Resilient Infrastructure
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Resilience Enhancing Infrastructure (REI)
Urban Resilience
Resilient Infrastructure
Infrastructure that enhances the resilience of the city overall
1. Reduces vulnerability to shocks/stresses 2. Enables response & management during crises 3. Accelerates rebound following crises
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Source: Wentworth Technology
For example, consider a Bus Rapid Transit system…
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Ques<on: How can we make a resilient BRT system?
• Invest to ensure the BRT system con<nues to perform under a range of shocks and stresses
Ø Design and build the system in favorable loca?ons to reduce vulnerability
Ø Invest in more durable physical assets (e.g. weather resistant)
Ø May involve financial engineering to ensure cash flows are robust under different economic condi?ons/shocks
Fundamentally this is about enhancing the physical and economic resilience of the asset
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Different ques<on: How can we design the BRT system so that it contributes maximally to strengthening the city’s overall resilience?
• Will likely want to invest similarly in physical and economic resilience
• May also consider other system design modifica?ons:
• Design passenger routes to expand access and serve excluded/ marginalized communi?es
‘Super BRT system’ that enhances urban resilience
Enhances Social Resilience by: • Reducing poverty • Increasing social cohesion
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Different ques<on: How can we design the BRT infrastructure so that it contributes maximally to strengthening the city’s overall resilience?
• Will likely want to invest similarly in physical and economic resilience
• May also consider other system design modifica?ons: • Design passenger routes to expand access and serve excluded/
marginalized communi?es • Design key BRT transit hubs outside of the city center to catalyze
greater regional economic ac?vity and diversifica?on
Improve Economic Resilience by diversifying economic ac?vity
‘Super BRT system’ that enhances urban resilience
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Different ques<on: How can we design the BRT infrastructure so that it contributes maximally to strengthening the city’s overall resilience?
• Will likely want to invest similarly in physical and economic resilience
• May also consider other system design modifica?ons: • Design passenger routes to expand access and serve excluded/
marginalized communi?es • Design key BRT transit hubs outside of the city center to catalyze
greater regional economic ac?vity and diversifica?on • Design with electric buses; Use bus baNeries to serve as back-‐up
power source for the city in ?mes of severe load stress
Improve Social & Economic Resilience by: • Increasing reliability/stability of the electrical grid • Improve health outcomes by reducing local air pollu?on
‘Super BRT system’ that enhances urban resilience
17
Different ques<on: How can we design the BRT infrastructure so that it contributes maximally to strengthening the city’s overall resilience?
• Will likely want to invest similarly in physical and economic resilience
• May also consider other system design modifica?ons: • Design passenger routes to expand access and serve excluded/
marginalized communi?es • Design passenger routes to catalyze greater regional economic
ac?vity and diversifica?on (outside the city center) • Select electric buses; Use bus baNeries to serve as back-‐up power
source for the city in ?mes of severe load stress • Design bus sta?ons to serve as shelters during heavy storms • Design bus lanes to serve as evacua?on routes • Locate bus depots strategically in neighborhoods to serve as
staging ground for emergency relief services during crises
Improve Social & Economic Resilience by: • Reducing vulnerability of people during storms • Accelera?ng recovery efforts following a disaster
‘Super BRT system’ that enhances urban resilience
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Super BRT System
Reduces Poverty
Increases Social Cohesion
Stabilizes Electricity Grid
Reduces Health Costs
Provides Protec<ve Shelter
Enable Emergency Response
Provides significant economic value to the city, above and beyond the private value to the BRT investor
Mul<ple Resilience Benefits
Urban Resilience
Resilient Infrastructure
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Unlocking Resilience Value
How can we unlock this value as a way to bridge the financing gap in ci<es?
1. We need to beNer understand and quan?fy the posi?ve and nega?ve resilience linkages/impacts of infrastructure on other urban systems.
2. We need more coordinated planning and design to op?mize system benefits of (individual) infrastructure investments. • We need beNer structures for working collabora?vely
across city departments, across public and private organiza?ons, and across regional and na?onal jurisdic?ons. (This is hard)
Good news: Small design changes can yield big resilience dividends. Small design changes may not be (too) costly.
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Recap
• It’s not just about making infrastructure more resilient, but more importantly it’s about designing and implemen8ng infrastructure that maximally contributes to enhancing urban resilience overall.
• It’s not only about building resilience to climate change and severe weather events. Addressing the range of economic and social shocks and stresses ci?es face is also cri?cal.
• Inves?ng in resilience can generate mul?ple co-‐benefits and posi?ve externali?es. Where resilience value is a public good, the public sector should subsidize its cost.
• We need beNer tools and approaches for measuring resilience impacts/linkages across urban systems. If we can beNer measure these linkages, we may be able to unlock new ways to pay for addi?onal infrastructure, assuming we can coordinate effec?vely.
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Thank You!
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Who should pay for resilience investments?
Globally Relevant
Locally Relevant
Distribu<on of Investment Returns/Value
Scale Poten<al/ Relevance
of Investment
Highly Diffuse
Concentrated/ Easily Captured by Investor
Individuals/Households/ Private Investors
Na<onal/Local Government
Private Investors (Regional & Interna<onal)
Development Ins<tu<ons & Global Chari<es
