NDF - Financing for climate change and development projects

Urban & Municipal Development Fund for Africa [NDF C100]

Photo: NDF
Photo: NDF
Photo: NDF
12.07.2017
The overall objective of the Fund is to support African cities and municipalities to better manage urban growth and climate-resilient development by improving governance and quality of basic services in their cities.

Regional Africa
Urban & Municipal Development Fund for Africa
Ref: NDF C100

NDF Grant: EUR 4,000,000
Project Period: 2018–2021
Partner Agency: African Development Bank
Implementing Agency: African Development Bank

Objective

The AfDB will establish an Urban & Municipal Development Fund (UMDF or the Fund) to strengthen the implementation of the Bank’s Urban Development Strategy. The UMDF will be a project preparatory fund to support cities in preparation of larger investments in climate-resilient urban infrastructure development, and with private sector participation in urban services.

The overall objective of the Fund is specifically to support African cities and municipalities to better manage urban growth and climate-resilient development by improving governance and quality of basic services. This aim will be achieved by preparing relevant resilient 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. The Fund will also develop a pipeline of urban projects to be financed by AfDB through its public and private sector instruments.

The Fund will launch annual calls for proposals. The average grant size will be between USD 250,000 and USD 1.0 million. A window for small-grants will finance up to USD 50,000. The Fund will organise knowledge management activities, including publications and sponsoring of a minimum of 1-2 events per year that target key municipal stakeholders and decision-makers as well as urbanisation experts.

The Fund will be anchored at the new Infrastructure, Cities and Urban Development Department in the Vice-Presidency of Private Sector, Infrastructure and Industrialisation at the AfDB.

The NDF grant will mainly finance project preparatory consultancies. Part of the grant will be used to finance a two-year technical assistance consultancy to work at AfDB in the Fund team. One of the tasks of the consultant will be to introduce suitable Nordic solutions to urban planning and climate change. For NDF, the support to the proposed UMDF will provide an opportunity to transfer experiences from successful efforts with partners in Mekong and Latin America. The Fund will also open an opportunity to link African cities with some of the proven, appropriate urban solutions that are found in the Nordic countries.

The NDF financing is for the first phase 2018-21. The lifetime of the Fund is ten years and there will be a continuous fund-raising effort in order to gradually increase the resources according to the activities and the demand for financing.

Financing

The total project cost estimate for the UMDF is EUR 13.0 million with NDF contributing EUR 4.0 million as grant, Switzerland SECO EUR 5.0 million as grant, and the AfDB providing a grant of EUR 4.0 million (TBC).

NDF Contact

Program Manager Aage Jørgensen
Telephone +358 10 618 0454

More information
C100 Proposal for Final Consideration