Nairobi to host City Creditworthiness Programme
26 September 2013, 11:46
Nairobi - The World Bank has announced that Nairobi would next month host the inaugural City Creditworthiness Programme.
According to the World Bank, the event will help city financial officers conduct thorough reviews of their municipal revenue management systems and take the first steps to qualify for a credit rating, according to the Breton Woods institution.
Such initiatives are part of a groundbreaking initiative to reach 300 of the largest cities in the developing world in the next four years to help them plan for a low-carbon future and gets capital flowing so they can finance those plans.
“To support cities access the needed financing, the World Bank and its partners have designed a City Creditworthiness Program. The inaugural session of this program will be held October 14 to 19 in Nairobi, Kenya and additional trainings are planned in Korea, India, and Colombia. Every dollar invested in the creditworthiness of a developing country city is estimated by the World Bank to be able to mobilize more than US $100 in private sector financing for low-carbon and climate-resilient infrastructure,” said Rachel Kyte, World Bank Vice President for Sustainable Development.
The second financing effort involves innovative mechanisms, such as pooled financing structures. The initiative will help connect cities that wish to finance the same type of investment to help them access the market together at better financing terms.
One example currently under development is the International Lighting Efficiency Facility (iLEF), which will finance LED street lighting in several cities, for a cumulative investment of over $1 billion. The savings from increased energy efficiency will cover both the principal and the interest.
The World Bank effort has the potential to improve the lives of over 700 million people in those cities and billions more globally as emissions are reduced.
The developing world’s fast-growing cities such as Nairobi face major challenges as they plan for the future. They have challenges how they have to provide services and infrastructure to an ever growing population and manage the vulnerabilities that come with a changing climate.
– CAJ News