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MANILA, PHILIPPINES - ADB has signed a Memorandum with the Cities Alliance (CA) to regulate the flow of CA's grant funds to ADB.
CA, a global partnership dedicated to improving the living conditions of the urban poor, operates a grant facility for its partners to finance poverty reduction programs in their cities. ADB, which joined in CA in 2002 and is contributing $250,000 for annual membership over the next three years, can now receive funds from CA for ADB to administer in grant projects.
To date, CA has committed $88 million, linked to more than $6 billion investments globally. Under the MOU, CA is expected to provide grant funds for use in ADB member countries totaling at least $1.2 million per year.
ADB will use the grant contributions from CA to finance activities in its developing member countries, including provision of policy advice, training and capacity development, institutional support and other assistance.
Activities already approved for a total of $2 million, include a slum initiatives in Philippines, development strategies for Azerbaijan, and urban upgrading strategy for Yangzhou, People's Republic of China.
One of these initiatives, the Metro Manila 'Cities Without Slums' Strategy, backed by a CA grant of $500,000, approved in February 2006, will help develop a strategy and an institutional framework linking Housing and Urban Development Coordinating Council, local government units, financing institutions and nongovernment organizations.
“The initiative will help in achieving the Government's 15-year strategy for a Slum Free Manila,” says Florian Steinberg, an ADB Urban Development Specialist.
CA was launched by the World Bank and United Nations Center for Human Settlements in 1999 as a global partnership dedicated to improving the living conditions of the urban poor. The International Bank for Reconstruction and Development and International Development Association, on behalf of CA, administer the financing facility.
ADB's membership contribution is made through a technical assistance grant of $750,000 approved in August 2005.
“Through its membership contribution, ADB will continue to sit in the CA Consultative Group, the Alliance’s board of directors, that is responsible for setting the Alliance’s long-term strategy, approving its annual work program and budget, and reviewing achievements,” says Woochong Um, Director of ADB's Energy, Transport, and Water Division.