Importance of infrastructure

   Infrastructure systems are an integral part of urban development and a deciding factor in delivering services to communities, and in supporting economic growth, but also in determining environmental impacts. Infrastructure is not only costly and very intensive in resource use, including energy, water, materials and land, but it also locks cities into consumption patterns for decades. Buildings, for
example, are estimated to contribute up to 40% of energy use and greenhouse gas emissions over their life span. Economic, social and political costs of retro-fitting can be quite high.
   Traffic congestion costs, which can be as high as 6% of GDP, and poorquality infrastructure have been found to be the main factors negatively influencing competitiveness of urban areas. Lack of attention to environmental and social aspects in infrastructure development reduces the profitability of investments as well as opportunities for contributing to economic growth and improving quality
of life. In turn, environmental quality and a more sustainable spatial approach enhance the livability of a city, and thus its attractiveness to foreign direct investment. Cities in Asia and the Pacific are at a crossroads in developing and expanding infrastructure in support of fast economic growth.
 

                                              Current limitations and actions required

     While many cities are currently implementing strategies based on the principles of local Agenda 21, it appears that there is room for a more systematic integration of environmental and social issues into policies, programmes and projects. Current practices for infrastructure project appraisal do not consider economic, social and environmental returns in an integrated and consistent
manner. This lack of integration is reflected in a lack of integration of economic,environmental and social aspects in policies and in institutions, which results in several distorting effects, including in public resources allocation.
    Where good practices exist, there is a need to identify success factors and remove barriers to their replication. It is conversely important to identify innovative approaches to financing of sustainable urban development including accessing workers remittances, accessing sovereign funds, pro-poor public-privatecommunity partnerships and greater utilization of carbon financing for developing sustainable cities.
    These challenges provide also a great opportunity for social transformation, via an appropriate infrastructure development, more competitive, more sustainable, more inclusive, barrier-free and gender responsive.

                                                        ESCAP¨s role

   ESCAP stands ready to assist countries in the region in this pursuit. ESCAP is the regional arm of the UN in Asia-Pacific, and has the mandate to promote socio-economic development through regional cooperation.
   In order to address these challenges, ESCAP has been developing regional frameworks for the promotion of environmentally sustainable economic growth,or Green Growth, as we call it, and for the promotion of inclusive and sustainable urban development. This is done through different modalities.
   First of all, through normative and analytical work. For example, we have developed guidelines for cities of low and middle income countries to develop decentralized composting to generate energy from waste. We are developing guidelines for formulating city-wide water and wastewater strategies for small towns. We are also developing a methodology to apply eco-efficiency criteria to
urban infrastructure development processes, at city level and in sectors such as transport, solid waste management, buildings and water.
   Second, by identifying and testing innovative solutions through action research and pilot projects: We have, for example, piloted several interventions through our Kitakyushu Initiative for a Clean Environment, such as communitybased solid waste management in Bago City, the Philippines, or the construction of small-scale treatment facilities for domestic wastewater in Korat, Thailand.
   Lastly, we convene regional policy dialogues, for policy advocacy and to exchange experiences and best practices among countries. These include the Asia-Pacific Urban Forum, the Regional Consultative Meeting on Good Urban Governance, and the Seoul Initiative Network on Green Growth Policy Forum.ESCAP has also been actively involved in the Asia-Pacific Ministerial Conference
on Housing and Urban Development, scheduled to be held in 2010, the Fourth World Urban Forum, which will be held in November 2008 in Nanjing, China and the Better Air Quality (BAQ) Forum 2008 to be held in Bangkok in November this year.

                                                 Discussion points for the Forum

   In concluding my remarks, I would like to put forward for discussion among the experts gathered today for this Special Forum two key questions, that arise when trying to address the challenges I have outlined:
1. What are the most successful processes for making environmentally sustainable and socially inclusive choices in infrastructure development?
2. What are the bottlenecks that prevent governments, private sector and others from adopting more sustainable practices and what regulatory reforms and incentives are needed to change their behavior?

    I hope that today¨s Forum will prove successful in further clarifying these aspects, and contributing to advancing discussions for the development of more inclusive, livable and competitive cities in Asia-Pacific, and I wish all of you fruitful deliberations.

   Thank you
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