Urban Knowledge Hub

Description

Developing countries lack basic urban infrastructure and municipal services. There is a considerable under-investment in urban infrastructure, which translates into the need to invest an additional $1.3 trillion yearly in urban public infrastructure. Urban infrastructure upgrading or rehabilitation cannot be achieved through own-source revenues, nor are transfers from government budgets sufficient. 

Urban finance involves raising and managing financial resources to support economic development, infrastructure expansion, and service delivery in urban areas. It encompasses the mobilisation of resources from taxation and private investment and ensures the efficient allocation of essential infrastructure and services. Effective governance and financial management promote transparency and accountability. Urban finance fosters economic sustainability, maximises limited resources' impact, and promotes inclusive and sustainable urban growth.

To accelerate the delivery of urban infrastructure and municipal services, cities need to use available instruments in various forms: increasing funding, using appropriate financing instruments, and attracting investors to develop new projects.

The Urban Finance area will bring knowledge on, among others: 

• The importance of supporting local governments, and not only national governments, in developing public policies linked to infrastructure and public services.

• There is a need to promote public-private partnerships to increase the available public resources.

• How the blending and guarantee instruments of the European Fund for Sustainable Development Plus (EFSD+) under Global Europe - NDICI as the EU's main financing tool for the period 2021-2027 - can support the strategy of the EU Delegations in the partner countries in support of financing urban infrastructure.

The Urban Finance Area will bring together experiences from different countries - Africa, Asia and Latin America - on the specificities, challenges and opportunities of financing urban infrastructure projects and managing urban services.

Knowledge Products implemented under the DG INTPA F4 are shared on this web page.

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