1 Invirtiendo en la competitividad y sostenibilidad de las ciudades

2 Características de una ciudad competitiva y sostenible

3 CIUDAD COMPETITIVA 72% $ De las 750 ciudades más grandes del mundo,Atracción de inversión extranjera Crecimiento económico acelerado Hogares con más ingresos $ Generador de empleos What Do Competitive Cities Look Like? Cities vary on their economic performance, and competitive cities are a cut above the norm. Using data from 2005 to 2012, the report finds the following: • Accelerated economic growth. The top 10 percent of cities achieved 13.5 percent annual gross domestic product (GDP) per capita growth, compared with 4.7 percent in an average city; • Outstanding job growth. The top 10 percent of cities achieved 9.2 percent annual jobs growth, compared with 1.9 percent in the remaining 90 percent. • Increased incomes and productivity. The top 10 percent of cities increased the average disposable income of their households by 9.8 percent annually. • Magnets for foreign direct investment (FDI). The top 5 percent of cities obtained as much FDI as the bottom 95 percent of cities combined. Although 72 percent of cities outperformed their national economies in GDP growth alone, only 18 percent of cities were able to outperform their national economies on jobs, growth, and productivity simultaneously. Thus it appears that usually trade-offs are made between these economic outcomes and that city competitiveness carries risks as well as opportunities. De las 750 ciudades más grandes del mundo, 72% superan el crecimiento económico de sus respectivos países.

4 CIUDAD COMPETITIVA Trabajo en Equipo Relaciones con otros gobiernosCoalición de Crecimiento (APP) Alcaldía Trabajo en Equipo

5 INTERVENCION GLOBAL Proyectos relacionados con Ciudades (2004-2015):Mas de US$ 9.5 billones comprometidos en 292 proyectos US$ 262 millones en 128 proyectos de asistencia técnica Tipo de intervención Ejemplo Compromiso directo con las ciudades Créditos directos a alcaldías APPs Compromiso directo con las alcaldías o entidades privadas que proveen servicios municipales Principalmente agua y saneamiento Transporte Público Calefacción urbana Tecnología relacionada a los servicios municipales básicos Proveedores de servicios con beneficios inmediatos para las ciudades Contadores inteligentes Edificios verdes Financiamiento para vivienda

6 La oferta IFC: Experiencia GlobalSamara Botoșani Belgrade Bucharest Istanbul Izmir Antalya Bhubaneshwar Lima- Annotation is tht there was financing through BBVA for "Metrapolitano" which was a transport project Kigali Medellín Bogotá Jakarta Lima Johannesburg Durban Buenos Aires

7 Proyectos de IFC en CiudadesEXPERIENCIA GLOBAL TRANS. MASIVO INTELIGENTE- COLOMBIA Financiamiento por $ 176 millones para desarrollar y operar el sistema de recolección de tarifas, gestión de flotas y sistemas de información en tiempo real para el sistema de transporte público integrado de Bogotá Creación de nuevos empleos EXPANCION DE SISTEMAS DE AGUA, CHINA Préstamo de US$ 16 millones a una empresa privada que invierte y opera en el sector de suministro de agua y tratamiento de aguas residuales en las ciudades secundarias y terciarias de China. EXPANSION DEL METRO – TURQUIA Préstamo de US$ 68 millones al municipio metropolitano de Estambul para la expansión de su sistema metro. Transporta 450,000 pasajeros al día. SOLUCIONES DE VIVIENDA, BRASIL US$ 47 millones de inversión en deuda y capital a un desarrollador de bienes raíces para ampliar la oferta de viviendas de bajos recursos en zonas urbanas Se entregaron 9,343 unidades de vivienda asequible a clientes de bajos recursos Proyectos de IFC en Ciudades CALEFACCION URBANA, RUMANIA Préstamo de US$ 10 millones al municipio de Botosani para implementar mejoras de infraestructura. Junto con asistencia técnica para aumentar la eficiencia y reducir los costos de suministro de calefacción. Ahorro de energía por más de 3.4TWh MEJORA DE CRÉDITO PARA BONOS MUNICIPALES, SUDÁFRICA US$ 31 millones de garantía parcial de crédito de una emisión de bonos en moneda local en de la Ciudad de Johannesburgo para apoyar agua potable, aguas residuales, electricidad y carreteras. Notes TBA: District Heating, Romania - IFC is considering a loan in the amount of up to RON 34 million (approx. US$ 10 million equivalent) for co-financing a district heating and energy efficiency rehabilitation program in the city of Botosani, north eastern Romania. The program consists of two phases. The first phase – also supported by the EU- includes the construction of a new gas-fired CHP station (installation of two gas engines 4MWe each and two heat-only boilers 52 MWth each) and the rehabilitation of 6.5 km of transport and 14.3 km of distribution network. The second phase comprises the rehabilitation of additional 3.7 km of distribution network as well as Energy Efficiency improvements in selected residential buildings in Botosani and other related investments. Mass transit, Colombia - IFC is facilitating a $176 million financing package to Recaudo Bogota S.A.S to develop and operate the fare collection, fleet management, and real-time information technology system for Bogota’s bus Integrated Public Transportation System (SITP). The financing will improve the Colombian capital’s capacity to manage its large transportation needs, helping serve 6 million bus passengers daily and making public transportation more affordable and convenient in Latin America’s sixth largest city. It will also create 2,500 new jobs. Innovative Waste Water, Solutions, Hungary - $5 million venture capital investment in a Budapest based wastewater treatment company that is developing and deploying a next-generation biological wastewater treatment technology. Housing solutions, Brazil - $47 million debt and equity investment to a real estate developer to expand the supply of low-income housing in urban areas. Street Lighting, India - Advisory project to support India’s Orissa state to upgrade its street lighting network under a public-private partnership that will improve energy efficiency and provide access to areas without street light. Water systems expansions, China- $16 million loan to a company investing and operating in the water supply and wastewater treatment sector in China’s second and third tier cities. Metro Expansion, Turkey - $68 million loan to the Metropolitan Municipality of Istanbul for the expansion of the metro system to the Asian side of the city (Kadikoy-Kartal). ( The proposed transaction is a EUR 50 million senior loan to Metropolitan Municipality of Istanbul (MMI) in Turkey to help finance a EUR 751 million investment for construction of the 22 km long Kadikoy-Kartal metro rail line on the Anatolian (Asian) side of Istanbul, including 16 metro stations. The project will help reduce travel times and improve mobility along one of the most congested traffic corridors on the Anatolian side of Istanbul by providing a clean, safe and efficient mode of public transit.) Credit Enhancement of Municipal Bond, SA - 31 million Partial Credit Guarantee to the City of Johannesburg in local currency to support water and wastewater, electricity and roads projects as well as reduce the city’s liabilities. ALUMBRADO PUBLICO, INDIA Asistencia Técnica para apoyar al estado de Orissa en la India para modernizar su red de alumbrado público bajo una APP que mejorará la eficiencia energética y proporcionará seguridad en áreas que actualmente no tienen luz. Ahorro anual de US$ 100,000 para el gobierno Movilizó US$ 4.8 millones en inversión del sector privado. SOLUCIONES INNOVADORAS PARA AGUAS RESIDUALES - HUNGRÍA US$ 5 millones en inversión de capital de riesgo en una compañía de tratamiento de aguas residuales para implementar tecnología biológica de tratamiento de aguas residuales de última generación

8 Redujeron 91 mil toneladas en emisiones de gases de efecto invernaderoIMPACTO GLOBAL Entre 2011 y 2013 los clientes de IFC: Incrementaron el acceso a servicios financieros para 474 mil clientes de microfinanzas Incrementaron el acceso a servicios financieros para 8 mil clientes PYME Redujeron 91 mil toneladas en emisiones de gases de efecto invernadero Mejoraron servicios de infraestructura urbana para 33 millones de personas

9 INTERVENCIÓN ESTRATÉGICA

10 US$400 millones de financiamientoINTERVENCIÓN ESTRATÉGICA Caso de Estudio IZMIR US$400 millones de financiamiento AGUA TRANSPORTE RESIDUOS ACCESO A FINANCIAMIENTO SECTOR PRIVADO AMBIENTE Y ASUNTOS SOCIALES CONTRATACION PUBLICA TT Let me give you one example from my region. We have a strategic partnership with the city of Izmir in Turkey, which we started developing 7-8 years ago. The mayor has identified 3 key priority areas for the city: improving physical mobility and connectivity; expanding access to wastewater treatment services; and managing solid waste. We’ve engaged across all three areas, providing advice, our own financing (just over US$200 million), and mobilizing financing from others (another almost US$200 million). We have contributed in a very real, tangible way to improving the city’s core infrastructure, helped the city to diversify its funding sources, and helped build capacity in the areas of procurement and community engagement. We have now truly positioned ourselves as a trusted advisor and are starting to pull in our private sector clients to help address some of the challenges that the city faces. You may wonder about profitability of this type of engagement. We estimate CCI/EC of 12% just on the debt side (this is almost twice the IFC average over the past 5 years). This is looking at a period of 15 years and including municipal and private sector transactions. EB So on profitability, if you take municipal debt business as a solid foundation, with zero NPLs and consistently good risk adjusted returns and couple it with strong fundamentals for equity returns due to long-term consumer demand growth and fiscal constraints of governments, would you not agree that this is a very attractive investment thesis? Yet, we have done very little in this space. Izmir is on the first examples of a strategic city engagement. We are now developing similar engagements with several cities in LAC – Bogota, Medellin, Buenos Aires. But if we look in the past 10 years, less than 10 % of our investments have had specific references to cities. Meaning we actually thought about impact on urban development when we designed an investment. 10%! So we are underinvesting in the space which appears to be really attractive both from developmental and financial angles, and has potential to grow our business in a pretty dramatic way. Here is what we think we need to do to scale up. We have traditionally put countries and sectors in the center of our strategies. We have country partnership strategies jointly with the Bank, right? We have sector strategies. But we are not yet looking in any systematic way at cities to calibrate the approach to our investment and advisory businesses. What if we change our approach? What if we add one more lens through which we see the world and that lens is called cities? What if we start paying attention to increasingly richer and more accessible city-level data to guide our decision making and investment considerations? What if we start tracking city-level exposures in addition to country level exposures to have a more granular understanding of our impact and of dynamics of specific urban marketplaces that may in some cases drive risk-return trade-offs more than general country level dynamics? There are tremendous differences city by city within one country.

11 INTERVENCIÓN ESTRATÉGICACaso de Estudio IZMIR & IFC: Cronograma MIGA cover: Sea Transportation, Tramway, and Railcars included MIGA cover for the commercial tranche (ING). Some additional information:  Traffic & Emergency Management: (euro 45 million) This project includes installation of an intelligent traffic management system and procurement of new emergency response vehicles, for (i) increased road mobility through reduction in travel time along selected arterial corridors, and (ii) improved emergency response and control times through improved average response time per fire call and average time to control fire spread. This project was financed solely by IFC.  Sea Transportation: This project includes the purchase of 15 new passenger ferry boats, 2 new vehicle ferry boats, and construction of piers to promote alternative modes of public transportation to alleviate road congestion. EBRD, AFD, and the commercial lender with MIGA cover (ING) financed the projects (IFC did not provide A Loan for this project but played a critical role in mobilization).  Tramway: (euro 55 million) This project includes construction of two new tramway lines on opposite sides of the Gulf of Izmir (Konak and Karsiyaka) and the procurement of related rolling stock, in order to (i) address growing ridership along project corridors using low-carbon rail transit, and (ii) reducing travel times along the project corridors by 3-4 minutes. The Project was financed by IFC, AFD, and the commercial lender with MIGA cover (ING).    Railcars: This project includes purchase and operation of 85 new metro cars to supplement IMM’s existing fleet, which will (i) reduce peak hour travel time by 35 minutes, (ii) reduction in operation of municipal busses along metro corridor, and (iii) increase metro ridership. This project was financed by IFC, EBRD, AFD, and the commercial lender with MIGA cover (ING).  Izsu Wastewater: (euro 28 million) Construction of the 4th module of the Cigli wastewater treatment plant, for (i) increasing the population served, (ii) increase the wastewater treatment capacity of Cigli district. This Project was solely financed with IFC.  Izsu Sewerage: Construction of 86.9 km sewerage system and a new wastewater treatment plant in Yeni Foca, for bringing wastewater treatment services to an unserved region in Izmir. This Project was solely financed with IFC. Hexagon: IFC is providing a loan of $42 million and investing $20 million in equity along with a €30 million loan from the Infrastructure Crisis Facility Debt Pool, an independent body overseen by Cordiant Capital, a Montreal-based emerging markets investment fund. The debt financing will be used to fund Hexagon Solid Waste’s first two facilities at Pamukova and Bilecik.

12 de infraestructura e innovaciónCOMPROMISO HOLÍSTICO Sector Privado APP para alumbrado público | Rajasthan Movilización de recursos | Beijing Enterprises Water Group Inclusión Género y acceso al metro| Buenos Aires Comunidad Desplazamiento | Cartagena Financiamiento de infraestructura e innovación Inclusion: Gender and access to Buenos Aires metro (2016): > In process of being defined Community: Displacement in relation to BRT in Cartagena > Rockefeller Grant > Helping the municipality develop a plan to address the needs of the displaced bus drivers and informal sector caused by the new BRT system (> IFC also funds one of the BRT concessionaires ‘Transambiente SA’) Environment: Advice on electrical busses in Izmir, Turkey > Overview of market for eletrical busses and cost comparion to diésel > Technical description of bus technology and charging infrastructure > Bus route simulation and analysis for different techology options (criteria: bus and infrastructure CAPEX, fuel consumptions, charge durations, emissions, noise, maintanance, capacity) > Case presentations Green buildings in India (2015-) > IFC brings capital market products to the EDGE India program > Together with a number of partners, the aim is to créate 200,000 creen homes and 10M sq ft of green comercial real estate > Buildings must meet certified design standards Non revenue water in Lima, Peru (2013): > IFC prepared a resource efficiency assessment (audit) study to: Evaluate technical improvements (equipment, network, etc.) that could result in water and energy savings, financial cost/benefit analysis, rank opportunities and recommend them for detailed investment-grade assessment > Project is to contribute to the improvement of the financial position of SEDAPAR by reducing costs through the conservation of energy and reduction of water loss. Tecnology & innovation: Advice on intelligent traffic lights in Bogotá, Columbia (2016) > IFC help city draft ToR for consultancy and funds study (which is still to be carried out) Waste-to-fertilizer in Izmir, Turkey > Hexagon project > IFC is providing a loan of $42 million and investing $20 million in equity along with a €30 million loan from the Infrastructure Crisis Facility Debt Pool, an independent body overseen by Cordiant Capital, a Montreal-based emerging markets investment fund. > The debt financing will be used to fund Hexagon Solid Waste’s first two facilities at Pamukova and Bilecik. (source: Izmir timeline slide) Private sector: PPP advice for street lighting in State of Rajasthan, India (2013) > Jaipur Municipal Corporation > IFC as the transaction advisor to structure a PPP for financing, upgrading, operating and maintaining the public lights system in Jaipur (Streetlight retrofitting). > In December 2014 a consortium won the bid for a 10-year energy performance contract Resource mobilization for lending in BEWG, China (2015) > BEWG – Beijing Enterprises Water Group Lmt > Support to expand core activities: development of 8 WWT plants and 4 water supply plants in China > From IFC disclosure portal: - The total project cost is estimated at about US$318 million, of which up to US$208 million will be financed by long term loans including up to US$51 million for IFC’s own account. - Up to US$39 million will be from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program. Up to US$145 million equivalent would be financed by commercial banks and other Developmental Financial Institution(s Medio Ambiente Tecnología Buses Eléctricos | Izmir Edificios Verdes | India Eficiencia de Agua| Lima Semaforización Inteligente | Bogotá Residuo-a-fertilizante | Izmir

13 IFC en Medellin

14 CIUDAD COMPETITIVA Multi-tarea Instituciones & RegulacionesInfrastructura & Terreno Multi-tarea Habilidades & Innovación Apoyo empresarial & financiamiento

15 MEDELLIN COMPETITIVA Medellín 2012 | Mejora en el Clima deInstituciones & Regulaciones Infrastructura & Terreno Medellín Message: We have taken the first step together with the city, but would like to be a strategic partner on its journey towards increased competitiveness Details on Investment: In 2012 IFC signed a $USD 349 million financing for EPM in order to improve and expand the access of more than 2.3 million people in Medellin and its surroundings. The package for EPM, which was IFC's first subnational financing activity in Colombia for a municipal utilities company, comprises a $USD 25 million seven-year loan from IFC's account and a syndicated loan for an amount of $USD 324 million, divided into two tranches, with terms of five and seven years. Habilidades & Innovación Apoyo empresarial & financiamiento

16 MEDELLIN COMPETITIVA Medellín 2012 | EPM Instituciones & RegulacionesInfrastructura & Terreno Medellín Message: We have taken the first step together with the city, but would like to be a strategic partner on its journey towards increased competitiveness Details on Investment: In 2012 IFC signed a $USD 349 million financing for EPM in order to improve and expand the access of more than 2.3 million people in Medellin and its surroundings. The package for EPM, which was IFC's first subnational financing activity in Colombia for a municipal utilities company, comprises a $USD 25 million seven-year loan from IFC's account and a syndicated loan for an amount of $USD 324 million, divided into two tranches, with terms of five and seven years. Habilidades & Innovación Apoyo empresarial & financiamiento

17 2016 | Bonos Verdes - BancolombiaMEDELLIN COMPETITIVA Instituciones & Regulaciones Infrastructura & Terreno Medellín 2016 | Bonos Verdes - Bancolombia Habilidades & Innovación Apoyo empresarial & financiamiento

18 Una Alianza con potencial

19 GRACIAS