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Home > Archived Features > Cities Alliance Signs MOU with ADB to Regulate Flow of Funds for the Urban Poor in Asia

Archived Features

Cities Alliance Signs MOU with ADB to Regulate Flow of Funds for the Urban Poor in Asia


Manila, Philippines, January 2007 – Cities Alliance has signed an MOU with the Asian Development Bank (ADB) that enables ADB's continued membership in the Alliance. The MOU is the outcome of a series of negotiations to iron out differences in the procurement rules of the World Bank, which administers CA funds, and the ADB, which which had hindered ADB's access to CA grant funds. All obstacles have now been removed, and the two organisations are now free to collaborate on increasing their support to Asian cities.

According to William Cobbett, CA Programme Manager who led a CA team to visit Manila in December, the MOU "clears the way for the Cities Alliance and the Asian Development Bank to formalize their partnership, and focus on operationalizing a work programme that can materially benefit cities and slum dwellers alike".

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 provide policy advice, training and capacity development, institutional support and other assistance that will all be linked to investment opportunities.

Activities already approved for a total of $2 million include a citywide slum upgrading programme in Philippines, development strategies for Azerbaijan, and an urban upgrading strategy for Yangzhou, People's Republic of China.

The first of these initiatives, the Metro Manila "Cities Without Slums" Strategy, backed by a CA grant of $500,000 which was approved in February 2006, will help develop a strategy and an institutional framework linking the Housing and Urban Development Coordinating Council (HUDCC), 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.

The Asian Development Bank joined in CA in 2002 and is contributing $250,000 for annual membership over the next three years. ADB's membership contribution is made through a technical assistance grant of $750,000 approved in August 2005.

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