Page 11 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Summary of recommendations

1. In order to develop a long-term investment strategy aimed at sustainable and smart city
development, it is vital to establish reliable, evidence-based city policy benchmarks. The
Guidelines suggest using the U4SSC Collection Methodology for Key Performance Indicators for
Smart Sustainable Cities (U4SSC KPI Collection Methodology) for this purpose. This methodology
is an internationally recognized tool developed by 16 United Nations agencies and provides a
comprehensive set of indicators that are easy to use.

2. To be able to achieve sustainable and smart city development, a comprehensible “city action
plan” should be developed, which relies on a baseline assessment of a city’s sustainability using
the U4SSC KPI Collection Methodology. A city action plan should be comprehensive, and cover
proposed actions for the development of the legal and institutional framework to promote
sustainable and smart urban development as well as urban development projects supporting
the implementation of the framework.

3. It is vital to involve all key stakeholders in the process of developing a city strategy. It is equally
important that a common framework for strategy development is used and accepted by all the
stakeholders involved. This framework should be based on the “five Ps” of the 2030 Agenda:
people, planet, prosperity, peace and strong institutions, and partnerships.

4. Often, laws and regulations prevent investors from investing in urban development projects.
This could be due to direct legislative barriers – when existing legislation does not allow private
capital to participate in public-sector projects – or indirect – when laws are difficult to enforce
and therefore investors do not want to risk their capital. The Guidelines suggest reviewing
and, if necessary, revising existing institutional and legal frameworks to enable private-sector
investments to engage in urban development projects. Effective and transparent legal and
institutional frameworks are critical for attracting reliable investment partners.

5. Project documentation created by the sponsoring institutions prior to mobilizing resources
should be “investor-minded”. This is important for investors, developers, constructors, and any
potential stakeholders, as they use these documents to evaluate their potential involvement
in a project in the construction and/or utilization phases. This facilitates knowledge-sharing
regarding the current conditions of the city and its projects. It also allows for risk management
responsibilities to be split fairly amongst the parties involved.

6. In the development of investment projects, all the stages should be treated with equal
importance, and it is recommended to complete all of them, as suggested below:

(a) Understanding the project. It is recommended to collect all necessary information about the
project: its objective, the implementation time-frame, the responsibilities of the people and
organizations involved, and the tools and instruments to be used to implement the project;

(b) Evaluating the project. It is suggested to establish a system for the evaluation of the project,
including its effectiveness, efficiency and impact;

U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects ix