Urban Financing Partnership Facility

In 2020, Australia provided $4.8 million for the ASEAN Australia Smart Cities Trust Fund (AASCTF), in addition to its initial contribution of $4.6 million (A$6.5 million) when it was established in 2019.

Approved on 1 April 2019, the AASCTF is a single-partner trust fund under the UFPF with an indicative contribution from the Government of Australia, through its Department of Foreign Affairs and Trade, of $13.9 million (A$20 million). The envisioned impact of the AASCTF is aligned with ADB’s Strategy 2030, which includes an operational focus on building livable cities that are green, competitive, inclusive, and resilient; and the Sustainable Urbanization Strategy of the ASEAN (Association of Southeast Asian Nations), which aims to promote a high quality of life, competitive economies, and sustainable environments. The focus areas of the AASCTF include the adoption of digital solutions and improved planning systems, service delivery, and financial management in participating ASEAN cities.

In October 2017, ADB approved the establishment of the Cities Development Initiative for Asia Trust Fund (CDIA-TF) under the UFPF. The fund’s overall objective is to support cities in preparing urban infrastructure investments and link these to financing. Specifically, the objectives are to assist secondary cities to prepare sustainable and bankable infrastructure projects, ensure financing for these urban infrastructure projects is secured, and strengthen individual and organizational capacities of stakeholders related to the preparation and financing of high priority urban infrastructure investments.

The fund builds on the 10-year track record of the CDIA program in supporting cities in Asia and the Pacific to bridge the gap between their development plans and the implementation of their infrastructure investments through technical assistance in project preparation and capacity building activities. Using a demand-driven approach, the CDIA-TF supports the identification and development of urban investment projects emphasizing two or more of the following impact areas: urban environmental improvement, urban poverty reduction, climate change mitigation and adaptation, and improved governance.

The Urban Climate Change Resilience Trust Fund (UCCRTF) received a transfer of $13.3 million (£10 million) from the United Kingdom’s Foreign, Commonwealth, & Development Office (FCDO) in 2020 as part of their $134.3 million commitment.

The fund was established in 2013 to help 25 fast-growing cities in Asia reduce the risks people face from floods, storms, droughts, and other climate-related impacts through better planning and infrastructure design. The UCCRTF prioritizes investments that especially target the poor and the vulnerable in eight ADB developing members: Bangladesh, India, Indonesia, Myanmar, Nepal, Pakistan, the Philippines, and Viet Nam. The current trust fund is operational until December 2022. Discussions are under way with the FCDO for a second phase of the UCCRTF. Subject to approval by the Government of the United Kingdom, the funding may become available in early 2023. The States (US), through US Agency for International Development, was a contributor to the UCCRTF from 2014 to 2016.

ADB approved the establishment of the Urban Environmental Infrastructure Fund (UEIF) on 2 December 2009 under the UFPF. Parallel to this approval was the Government of Sweden’s commitment to contribute about $14 million for the UEIF, followed by an additional contribution of $7 million in 2011. The fund supports ADB’s response to the huge unmet needs of the region for both basic and economic infrastructure that, under the then prevailing Strategy 2020, is a core business area of operations. The objective of UEIF is to raise and invest cofinancing from development partner agencies to support the implementation of Strategy 2020 through the provision of grants for technical assistance and investments focused on delivering pro-poor and environmental benefits.