NDF - Financing for climate change and development projects

Emerging and Sustainable Cities Initiative (ESCI) II [NDF C68]

Photo: IDB/ESCI
18.06.2014
The objective of the proposal is to strengthen low carbon development and reduce vulnerability to climate change through implementation of the key elements in the Action Plans for Cochabamba, Bolivia; Managua, Nicaragua; and Tegucigalpa in Honduras. The three Action Plans were financed through project NDF C40.

Latin America
Emerging and Sustainable Cities Initiative (ESCI) II
Ref: NDF C68

 
EUR 4.0 million
Project period: 2014-2017
Partner agency: Inter-American Development Bank
 
Objectives
Emerging and Sustainable Cities Initiative (ESCI) addresses fast-growing intermediate (0.5-2.0 million inhabitants) Latin American cities’ environmental, urban and fiscal sustainability in a changing climate. ESCI began in 2011 with a grant from IDB to support five pilot cities. At present, ESCI plans to reach 50 cities in 2015. NDF was the first financing partner to join ESCI with the approval of a EUR 2.1 million grant in December 2011 to support climate profiles and action planning for Cochabamba (Bolivia), Managua (Nicaragua), and Tegucigalpa (Honduras).

The objective of the second phase NDF support is to strengthen low carbon development and reduce vulnerability to climate change through implementation of the key elements in the Action Plans for Cochabamba, Bolivia; Managua, Nicaragua; and Tegucigalpa in Honduras. This will be achieved through the preparation of relevant sustainable infrastructure projects, creating planning and risk management instruments, and improving the local capacity for the development and implementation of climate change mitigation and adaptation activities.

There will be 4 main components:
A. Pre-investment studies for the Integrated Mass Transit System (IMTS) of the Cochabamba Metropolitan Area;
B. Implementation of an Urban Development Tool-Kit for the City of Managua;
C. Pre-investment studies for reducing climate change vulnerability in Tegucigalpa;
D. TA component on Nordic solutions to urban planning and climate change.

Providing pre-investment funding to cities with scarce budget resources (and many demands), will increase the possibilities of real project execution, improving the impact and positive outcomes to the citizens of such cities. All activities will be accompanied by a resource mobilization strategy directed at other multilaterals, international climate institutions, national and subnational entities, and the private sector. The NDF grant will be joint co-financing.

Financing
Total budget EUR 36.03 million (USD 50.0 million), NDF grant: EUR 4.0 Million, IDB EUR 14.41 million (USD 20.0 million), others EUR 17.62 million (USD 24.45 million) (JICA, Korea, Austria, SECO and China). There will be in-kind contributions from the city administrations in all three countries. 

NDF Contact
Program Manager Aage Jørgensen
Telephone +358 10 618 002

More Information
C68 Administration Agreement