India s Cities of Opportunities

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1 India s Cities of Opportunities The Challenge of India s Inclusive Growth Development Aspirations & Investment Opportunities Place Date here M. Teresa Kho Country Director for India Asian Development Bank India Business Forum, Singapore International Water Week Singapore, 13 July 2016

2 Outline I India s Urbanization An Overview II ADB s Support to India s Rapid Urbanization III Urban Challenges from ADB s Perspective IV Way Forward to Inclusive, Green, and Competitive Cities

3 I India s Urbanization An Overview

4 Rapidly Urbanizing India Rapid Urbanization (projected to grow to 600 million by 2030 and 800 million by 2050) 1000 Urban areas contribute about two-thirds to India s GDP Planned urbanization will be key to India s economic growth Urban Population in Million GDP's Contribution of Cities in India Urban Population in Million Cities Others

5 No of Clas1 Cities Population im Million Growing Urban Footprint Total towns Small Towns (less than 100,000) Other Class 1 Cities (100,000 to 1 million) Million plus Cities Class 1 Mega cities (10 million plus) 50 0

6 Challenges to Inclusive Growth A. Access to Basic Services Reliable water, transport and power Municipal waste management Affordable housing B. Employment opportunities Creating jobs Improving skill set and employability

7 II ADB s Support to India s Rapid Urbanization

8 $2,206M, 18% ADB s Ongoing Portfolio (as of 31 Dec 2015) $315M, 3% $500M, 4% $3,412M, 29% Agriculture and Natural Resources - 7 Loans Education/ Health - 3 Loans Energy - 25 Loans $4,242M, 36% $1,250M, 10% Total Portfolio: $ 11,925M 84 Loans Finance and Public Sector Management - 5 Loans Transport and Communications - 19 Loans Urban Development and Multisector - 25 Loans

9 ADB Urban Sector Portfolio in India Number of ongoing projects 13 Towns and Cities covered 103 Net value of ongoing loans $ 2.19 billion Cumulative contracts awarded up to June 2015 $1.24 billion Contracts to be bid out $0.95 billion Number of completed projects 8 Towns and cities covered 101 Net value of completed loans $1.6 billion

10 Ongoing and Completed Projects Ongoing: 17 States 103 towns Examples Uttarakhand Urban, Reconstruction, and Tourism Rajasthan II and III Kolkata II Karnataka III and IV Kerala North East Bihar Assam Sikkim Tourism projects in Punjab, Himachal Pradesh, and Tamil Nadu Completed: 101 towns Examples Karnataka I and II Kolkata I Rajasthan I Gujarat Earthquake Rehabilitation and Reconstruction Tsunami Madhya Pradesh Urban

11 Cumulative Results of ADB s Urban Initiatives Population with new or improved water supply (number in million) Water supply pipes installed or upgraded (length of network in km) Potable water treatment capacity (million liters per day) 26 14,955 2,600 About 0.2 million are slum households. Above 45% of the urban services are delivered in the lagging states

12 Cumulative Results of ADB s Urban Initiatives Population with new or improved sanitation (number in million) 15 Sewage pipes installed or upgraded (length of network in km) Wastewater treatment capacity added or improved (million liters per day) 4,829 1,837

13 III Urban Challenges from ADB s Perspective

14 Implementation Challenges Developing New Projects Sector Reforms

15 How ADB Addresses the Challenges Creating strong State- and City-level entities Governance and policy reforms Procurement reforms

16 Use of new approaches and new technologies Waste-to-Energy SCADA Trenchless Technology

17 IV Way Forward to Inclusive, Green, and Competitive Cities

18 ADB support to Government s New Initiatives Smart Cities Mission Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Swachh Bharat Mission

19 Support to Economic Corridors: East Coast Economic Corridor (ECEC)

20 ECEC: India s First Coastal Corridor Nautical advantage Approx 1700 km long coastline 6 major ports and 3 of India s deepest draught ports Mineral-rich Hinterland 86% of coal reserves; 82% of iron ore reserves; 70% of bauxite reserves; and 40% of gas reserves Industrialization influenced by resource/natural advantages Auto/electronics (off-chennai) PCPIR/refineries (Cuddalore- Nagapatnam and Kakinada-Vizag) Iron and steel plants (Orissa, Jharkhand, Chhattisgarh) Food processing and textiles Naval Shipyards (Vizag, Kattuppalli) Defence and space exploration (Sriharikota, Balasore)

21 Urban Interventions Key to Meeting Potential Strengthening existing cities and towns Planning for new genre of urban-industrial clusters Affordable housing at appropriate distance from hazardous industry clusters Regional public transport system to connect cities, industrial clusters and workforce housing

22 Conclusions Urban infrastructure development will remain important to ADB s support for India Improving competitiveness of Indian cities is another strategic focus Tap India s demographic dividend for inclusive growth

23 Thank You