Global Environment Facility Indonesia Sustainable Cities Impact Project

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The proposed project is a child project under the Global Environment Facility 7 (GEF-7) Sustainable Cities Impact Program (SCIP) which supports cities to pursue integrated urban planning and implementation and increase their ambitions to deliver impactful sustainable development outcomes with global environmental benefits (GEBs) on climate change mitigation and biodiversity. The Project also supports three CPF 2016-20 engagement areas: Engagement Area 1 (Infrastructure Platforms at the National Level) works through “platforms” in partnership with government and development partners to reach scale, and where relevant, the private sector; Engagement Area 3 (Maritime Economy and Connectivity) aims to create an improved regulatory and operating environment that supports public and private investments to support the blue economy; and Engagement Area 4 (Delivery of Local Services and Infrastructure) strengthens the decentralization framework to improve local service delivery and support sustainable urbanization, particularly through infrastructure development. In particular, the Project strengthens the links between urban planning and spatially informed infrastructure development and encourages cities to adopt the technical design of subproject investments to reduce pollution, biodiversity loss and GHG emissions. The Project aims to mainstream two environmental considerations into urban planning and infrastructure investments, biodiversity and climate change. The development objective is to integrate environmental and climate change considerations in participating cities' development plans and preparation of priority capital investments. The Project’s design is based on three key building blocks that correspond to three main project components: i) integrated development planning, where area based and corridor-based approaches are used for spatial planning and identification of pipeline capital investments to boost climate change (mitigation and adaptation) and environmental outcomes, including those related to biodiversity, from urban development (Component 1), ii) preparing investment sub-projects that are area-specific (based on the first building block result), tailored to city needs, and integrate nature-based solutions within the urban sustainability menu of investment options (Component 2), iii) support local government to identify alternative and innovative financing modalities for projects within the priority corridors and areas identified in Component 2 and support them to access these alternative sources of finance (Component 3). The three building blocks are supported by two cross-cutting project components on policy dialogue and knowledge management (Component 4) and project management which will finance support to the Central Project Management Unit (CPMU) and all Project Implementing Units (PIUs) on overall project management and implementation, including the technical, fiduciary, procurement, environmental and social safeguards, monitoring and evaluation, and reporting aspects.