The Past Analysis and relating the
future of the Cities .
In 2007, for the
first time in human history, more people lived in urban areas than rural ones.
Fast forward to today and growing urbanization patterns show few signs of abating.
An estimated 3 million people move to cities every week. By 2050, city dwellers
are expected to outnumber their rural counterparts by a ratio of 2:1.
Saddled with legacy infrastructure and
limited budgets, many urban areas are struggling to keep pace with such rapid growth.
The result is increased congestion, reduced quality of life, lost economic potential,
and negative health outcomes.
Cities around the world are
increasingly looking to implement initiatives that respond to these challenges.
But limited funds constrain progress. Just 16 % of cities are able to self-fund
required infrastructure projects. As a result, cities are enlisting the support
of private and non-profit partners to advance their smart city agendas. EURO
INDIA Consulting here examines the creative ways municipalities are using
private and non-profit sector participation to advance their smart city agendas
and distil the lessons learned for other cash-strapped, cities seeking to
overcome their own funding and financing barriers.
Partnering for smart city initiatives.
From initiatives aimed at improving
public health and expanding Wi-Fi access to promoting affordable housing,
municipalities are forging innovative partnerships to improve the quality of
life for their residents and as a means of refurbishing and modernizing aging
infrastructure assets. Their experiences show how cities can overcome
traditional barriers to funding and financing smart city projects by
demonstrating new technology’s potential to reduce costs, recycling existing and
legacy infrastructure assets, unlocking value, and bringing a critical mass of players
together to spur economic development.
The methodology used by EURO INDIA Consulting leveraging Public
and Private Partnerships
Whatever kind of smart city initiative a local government pursues,
several key practices can set the stage
for successful public private collaborations. Here are a few ways Euro India
fosters for productive partnerships:
· Start with the end in mind.
EURO INDIA Smart Consulting with its participation helps in defining the desired outcomes at the outset of the project. Getting clarity around the ultimate objectives you’re trying to achieve and the needs you’re trying to address is a necessary first ste
Inventory of available assets.
EURO INDIA Smart Consulting digs out the stock of the assets available at disposal. Are there particular assets that could be recycled? If yes then is it permitted to recycle the asset or there are barriers in transferring ownership or management of the asset? Once a public sector entity has established clarity with the Euro India what it’s permitted to do, the next step is understanding the relative value of the assets to both the city and to the private sector.
·
Understand the business model.
What is the proposed revenue model? What are the related business risks? Projects need to be financially sustainable,
which, in some cases, may require scale beyond the city council and the
government involved.
· Appoint a champion with clear decision-making
authority.
EURO INDIA Smart Consulting always targets to have a clear
decision-maker, often a chief innovation officer or equivalent leader, within
city government, who can streamline planning and aid in building key relationships.
The city-led approach assists in project implementation by establishing a public
champion to act as a face for the city.
· Build
local support.
When smart city projects have local support, cities are better
positioned to attract private partners. Here in the scenario, Euro India again
plays the pivotal role by involving itself with the government and local and
the social leaders from different communities to clarify the benefits which can
be reaped. And once the residents embrace projects that have clear social
benefits and such projects appeal to businesses’ social responsibility goals.
The likelihood of receiving philanthropic support improves when the project
serves the needs of a population and aligns with a private partner’s mission.
· Develop a business case that clearly lays out
the value to potential partners.
A city must present a business case that clearly articulates the
potential value of the project to private partners. The value can take
different forms, from direct returns on investment to indirect benefits like
greater economic development. While many businesses will not receive a direct
return, the improvements to the city indicate future financial gains for the
private sector.
· Create a third-party entity.
Establishing a third-party entity encourages role clarity, political
feasibility, and eases procurement. A third-party entity can help partners and
cities navigate the complex structure of both city governments and private
corporations. Third parties provide a clear platform for decision-making and
planning. That’s what EURO INDIA Smart Consulting is all about in the role.
How can the private and public sectors work together to create smart cities?
To start with here the Smart-city experts share examples of
successful public–private partnerships from across the world
How does a city transform itself into a smart city?
One strategy involves bringing the private sector into the fold,
to provide funding, technical know-how, and innovation that complements
public-sector efforts. But bringing these two different elements together can
also prove challenging in practice. At one of the public event in New York,
some thought leaders asked smart-city experts for examples of successful
public–private partnerships.
And the following Insights were received for example scenarios
A lot of people are exploring and trying different things and trying
to be thoughtful about it. To give a couple of examples, in Copenhagen
they’re working with Hitachi around how to monetize data sets to be used
for creating applications and other solutions for residents.
Another example is how Abu Dhabi has partnered with a Swiss
company around telemedicine, determining how to provide solutions, do so
equitably, and ensure that there’s a good flow of funds.
Another one is Mexico City, which is working with a non-profit
around earthquake detection. It’s not just about for-profit companies; it’s
also about think tanks and non-profits who are working in this space and
thinking about bringing them into this ecosystem.
A different model here is what Singapore is doing with its smart-nation initiative. The country is trying to incubate a number of different solutions on the governmental side, with the hope of spinning them off, so that they do have some longer-term, more sustainable revenue stream against them.
Developing Economies smart cities solutions Scenarios.
As the solutions work to close the infrastructure gap, city governments in developing economies must strongly consider smart infrastructure solutions, which use advanced technologies to deliver works and services to citizens. Because they help cities operate faster, more effectively, and more efficiently, smart infrastructure solutions help governments leapfrog common traditional infrastructure options and common service delivery constraints.
Thus, as project teams help craft infrastructure delivery business models, and then prepare the related procurement structures, they should consider the technological implications of the project ensuring the project will create value over the long term.
The examples (below) in Africa
(region-wide), Argentina, and Kosovo present technological innovations used by
the developing economies across regions to foster innovation in infrastructure
provision and improve public service delivery.
·
Africa (region-wide)
Mobile phone-based technological
innovations in Africa have allowed countries in the region to surpass or
leapfrog challenges in both communication and financial infrastructure. In communication,
countries in these developing economies (here and throughout the developing world)
have not had to invest in landlines due to the expansion of mobile phone use.
More specifically, Ethiopia, Libya, and South Sudan did not previously make
substantial telecommunication cable installations, and thus would not need to
upgrade from analogue to Asymmetric Digital Subscriber Line (ADSL)— they can
immediately implement the latest 5G/LTE networks.
29 Mobile banking applications also
reduced the need for common financial sector infrastructure as in developed
nations, instead allowing users to transfer value through phones rather than
relying on brick-and mortar banks or ATMs.
·
Buenos Aires, Argentina
Buenos Aires provides one example of
the benefits a government gains when it leverages smart cities solutions. In
2010, the city implemented a new IT system that has improved its response to
infrastructure problems and helped to head off some problems before they even
occur. Today, rather than phoning a call centre to ask the government to fix
potholes, remove graffiti, or respond to other issues, citizens in Buenos Aires
can use a mobile app or social media to make those requests. The citizen might,
for instance, tweet a picture of a broken sidewalk along with a short
description. Using integrated geographic information system (GIS) technology,
the app sends the location of the problem to the relevant government agency and
dispatches a vendor to make a repair. Then a city street inspector uses a
mobile device to confirm and document the completed work. Government agencies
also use an electronic dashboard to monitor the status of each complaint and
capture citizen feedback.
In addition, Buenos Aires uses data
from sensors and crowdsourcing to pinpoint potential problems in specific locations.
For example, sensors that measure the speed, direction, and level of water in
sewage drains can predict when flooding is likely to occur and generate alarms,
allowing city workers to respond to the problem before floodwater has a chance
to harm people or property. Thanks to these smart technologies, Buenos Aires has seen the average time to
resolve a complaint drop by 93 % without incurring additional costs, allowing the
city to fix more problems in less time.
· Krusha e Madhe, Kosovo
The World Bank has used unmanned aerial
vehicles (UAVs)—commonly known as drones—in Kosovo to conduct quick, low-cost
land surveys, allowing residents of one village to officially establish their
property rights. Officials with the national government hope to apply similar
technology in cities. In the village of Krusha e Madhe, where most men and boys
were killed during the conflicts of the late 1990s, women have been working to
improve their lives by establishing business cooperatives. In the past, because
most of the women did not have formal registration for their homes or lands,
they could not use those assets as collateral when seeking credit. In 2015, World Bank employees spent one week
collecting data with a UAV, creating high-resolution maps to support the
official registration of lands in the village. Kosovo’s cities have seen rapid
expansion in recent years, including many informal settlements and illegal construction.
To address this problem, the government of Kosovo has started a program that
lets landowners legalize their property rights. One specialist involved in the
project in Krusha e Madhe has observed that the same technology could support
those efforts in cities, helping to produce maps and 3D models that are
accurate, current, and cost-effective.
References
Deloitte Argentina, Deloitte RC – Responsive City app, Deloitte
& Co. S.A., https://itunes.apple.com/us/app/deloitte-rc-responsive-city/id943007411?mt=8
World Bank, “Drones offer innovative solution for local mapping,”
January 7, 2016, http://www.worldbank.org/en/news/feature/2016/01/07/drones-offer-innovative-solutionfor-local-mapping