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Urban infrastructure insights 2015

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Contents

Foreword 2

Executive summary 3

About the research 5

Introduction 6

Section Funding the right infrastructure spurs 8

1 economic prosperity

Case Study 1: 10
Amsterdam city leaders learn the value of compromise

Section Managing infrastructure delivery 15

2
Case study 2: 18
Rio drives a transportation revolution

Section Better information is key to more effective action 20

3
Case Study 3: 25
Money and ambition fuels growth in Abu Dhabi

Conclusion 26

Appendix: 29
survey results

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1 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

Foreword Executive summary


The challenges of an increasingly
urbanised world

The pace at which urban development is providing full cycle water services in 22 Globally, urban infrastructure is in better WRSODQIXQGDQGLPSOHPHQWWKHP7KDW .H\QGLQJVLQFOXGHWKHIROORZLQJ
happening across the world in the FRXQWULHVDURXQGWKHZRUOG shape than many reports would have you includes building platforms to engage the
WZHQW\UVWFHQWXU\VHHPVXQVWRSSDEOH We have partnered with the Economist believe, but, if cities fail to ramp up public in discussions about investment Respondents overwhelmingly
Highly-concentrated demographic growth ,QWHOOLJHQFH8QLWRQWKLVJOREDOVXUYH\ spending on their transport, energy, decisions, creating greater transparency blame city leaders for poor
in cities is one of the greatest challenges and report because we believe that water and waste-management systems around spending, incorporating infrastructure and services Lack of
that leaders face as they look to protect foresight and public debate is needed to in the near future, these vital environmental and social issues into political will (40%), lack of skills
the future of their cities in the face of the address the challenges already infrastructures and services are going to decision making, as well as partnering DPRQJRIFLDOV  DQGSRRU
RYHUZKHOPLQJJOREDOVXVWDLQDELOLW\FULVLV PHQWLRQHG VXIIHUDQGFLW\OHDGHUVZLOOEHEODPHG ZLWKSULYDWHRUJDQLVDWLRQVWRQGQHZ governmental effectiveness (34%) are
Through the rise of urban centres, city As you will see from the reports ,QDUHFHQW(FRQRPLVW,QWHOOLJHQFH8QLW VRXUFHVRIIXQGLQJDQGGHVLJQLGHDV seen as the principal impediments to
authorities have become more involved QGLQJVRQHRIWKHJUHDWHVWREVWDFOHVZH VXUYH\EXVLQHVVH[HFXWLYHVDQG Together, these strategies will help LQIUDVWUXFWXUHGHOLYHU\/DFNRIIXQGV
WKDQHYHULQFLWL]HQVZHOOEHLQJ8UEDQ IDFHLVPDWFKLQJWKHH[SHFWDWLRQVDQG policymakers stated that failure to leaders transition their cities for the was also cited by 34% of respondents
governance requires political and requirements of citizens with practical, maintain key infrastructure systems and future, and ensure they can attract the DVDQLVVXH3ROLF\PDNHUVDUHHYHQ
economic skills, and, as we have QDQFLDOO\YLDEOHVROXWLRQVGHOLYHUHGE\ services in their cities is the direct result PXOWLQDWLRQDOUPVWKDWFDQHQDEOHWKHLU harder on city leadersmore than half
increasingly seen, it also requires FLW\DXWKRULWLHVDQGVHUYLFHSURYLGHUV,W of poor leadership and a lack of skills HFRQRPLHVWRJURZ cited lack of skills and knowledge of
harnessing technological and social LVDERXWQDQFLDOPRGHOVLQIRUPDWLRQ DPRQJFLW\OHDGHUV This paper, based on a survey of more RIFLDOVDVWRSLPSHGLPHQWVWKDQDUH
inventions & adaptations to manage, RZVDQGPDQDJHPHQWV\VWHPVDQGD This is not an inherent failing of the than 400 respondents300 business WKHLUSULYDWHVHFWRUSHHUV
process, communicate and feedback on and become stakeholders in their urban further challenge to this is delivering public sector; indeed, the policymakers H[HFXWLYHVDQGSROLF\PDNHUV
GHFLVLRQPDNLQJ environments these solutions in a way that fosters surveyed judge themselves more harshly investigates the state of urban Those in Western Europe were
The debate concerning the future of At FCC (Fomento de Construcciones y JUHDWHUVRFLDOLQWHJUDWLRQ7KLVLV WKDQWKHSULYDWHVHFWRUMXGJHVWKHP infrastructure around the world and how more likely to cite a lack of funds
cities has been dominated in recent years Contratas) we believe that citizens form something that goes right to the heart of However, it does suggest that cities city leaders can engage with citizens and as an impediment than any other
by the concept of smart, viewed DYLWDOSDUWRIDQD[LVZLWKSROLF\PDNHUV RXUEXVLQHVV should spend more time training their service providers to secure support and region This is partly the result of
especially from the perspective of and private companies that are :HDUHSOHDVHGWRVKDUHWKHVHQGLQJV leaders and collaborating with the private LQYHVWPHQWIRUWKHVHSURMHFWV having to upgrade and maintain aging
information network and big data use to FRQWUDFWHGE\ORFDOJRYHUQPHQWV)&&LV with you and we hope they assist you VHFWRU,QIDFWPRUHWKDQKDOIRI infrastructure while struggling with the
LPSURYHWKHHIFLHQF\RILQIUDVWUXFWXUH a Citizen Services company, and by this with your own understanding of issues UHVSRQGHQWVEHOLHYHWKDWPRUHH[WHQVLYH 7KHUHVHDUFKH[DPLQHV OLQJHULQJHFRQRPLFFULVLV+RZHYHULW
DQGVHUYLFHV+RZHYHUH[FOXGLQJVRPH we mean that we put citizens at the that are impacting citizens, policy makers use of public-private partnerships (PPPs) The infrastructure systems that also suggests that governments are
H[DPSOHVWKLVSHUVSHFWLYHKDV heart of what we do, whether it is and businesses every day in our would be the most effective way in which require the most attention, today and overlooking the opportunity to take
underestimated the capacity of cities delivering vital metro and rail links in LQFUHDVLQJO\XUEDQLVHGZRUOG to improve infrastructure and services in LQWKHIXWXUH advantage of record-low interest
own citizens and the role they can play in Riyadh or Lima, managing critical waste their city; moreover, 82% say the  +RZWKHTXDOLW\DQGHIFLHQF\RI rates, favouring instead short-term
using technological advances to VHUYLFHVDFURVVWKH8.6SDLQDQGLQ Juan Bejar government should work more closely infrastructure impacts urban economic DXVWHULW\
participate in the local decision-making much of Central & Eastern Europe, or Vice Chairman & CEO, FCC Group with the private sector to improve urban JURZWK
LQIUDVWUXFWXUHDQGVHUYLFHV&LW\OHDGHUV  7KHVRFLDOSROLWLFDODQGQDQFLDO Respondents need high-quality
must also put greater emphasis on obstacles to infrastructure and service infrastructure to improve the
building relationships with citizens to win GHOLYHU\ status of their cities, but they want
support for these investments, because, The relationships and interactions to focus more on operations and
even when projects deliver their intended between citizens, government maintenance to do so A majority
results, if the public does not support authorities and infrastructure or see attracting multinational companies
them, they are likely to be viewed as VHUYLFHSURYLGHUV as a top priority for city leaders, with
IDLOXUHV What city leaders can do to create over 75% asserting that the availability
To get the greatest value from these sustainable infrastructure solutions and quality of their infrastructure will
infrastructure investments, city leaders that business leaders and citizens will affect what destination multinational
must think more strategically about how VXSSRUW FRPSDQLHVFKRRVHWRLQYHVWLQ

2 3 Written by the Economist Intelligence Unit and sponsored by FCC, 2015


Urban infrastructure insights 2015 Urban infrastructure insights 2015

+RZHYHUDVLJQLFDQWVD\WKHLU
city should improve maintenance and
increased use of PPPs was the most
often cited means of providing the About the
research
RSHUDWLRQVRIH[LVWLQJV\VWHPVDQG greatest possible improvement (54%)
services, rather than build new physical WRLQIUDVWUXFWXUHDQGVHUYLFHV
LQIUDVWUXFWXUH7KLVFDQFRQLFWZLWK
the desires of city leaders, who often Rail and road investments are the
SUHIHUH[SHQVLYHQHZLQIUDVWUXFWXUH leading infrastructure concerns,
projects that leave a greater personal underscoring the need for
OHJDF\ sustainable systems for
transporting people and goods
Despite media depictions of Policymakers tend to be more worried
infrastructure on the verge of WKDQH[HFXWLYHVDERXWKLGGHQ
collapse, urban infrastructure is infrastructure systems, including
still in relatively good shape. energy, water and information
However, it needs major technology (IT) networks, which
investment to stay that way While UHTXLUHVLJQLFDQWLQYHVWPHQWWR
three-quarters of respondents say PDLQWDLQ Insights into urban infrastructure and Leonie van den Beuken, head of Spatial Planning and Environmental Issues
their city infrastructure is adequate services is a report written by The for the Port of Amsterdam
today, 68% believe increased Executives believe improving (FRQRPLVW,QWHOOLJHQFH8QLW (,8 DQG Stefan Brem, head of Risk Analysis and Research Co-ordination for the
investment will be needed within the education should be their citys sponsored by FCC (Fomento de 6ZLVV)HGHUDO2IFHIRU&LYLO3URWHFWLRQ=XULFK
QH[WYH\HDUVWRNHHSLWWKDWZD\ top concern, but policymakers do Construcciones y Contratas), a Spanish
Isabel Dedring, deputy mayor for Transport, London
One in ten say that their current not even put it in the top three environmental services, infrastructure,
Michael Hupl, mayor and governor, Vienna
systems and services are already This highlights a troubling disconnect ZDWHUJURXS7KHUHVHDUFKLVEDVHGRQD
LQDGHTXDWHRUVHULRXVO\GHFLHQWLQ and should prompt city leaders to survey of 409 global respondents, Dan HoornwegSURIHVVRUDQGUHVHDUFKFKDLU8QLYHUVLW\RI2QWDULR,QVWLWXWH
Latin America, this rises to a UHFRQVLGHUWKHLUSULRULWLHV6RFLDO LQFOXGLQJEXVLQHVVH[HFXWLYHVDQG of Technology, and former lead advisor, Sustainable Cities to the World Bank
ZRUULVRPH infrastructure and softer investments 103 policymakers, conducted in Greg KochGLUHFWRURIJOREDOZDWHUVWHZDUGVKLSLQWKH2IFHRI6XVWDLQDELOLW\
in human capital cannot be neglected, 6HSWHPEHUDQG2FWREHURI$URXQG at The Coca-Cola Company
Strong relationships and better as cities work to attract investment half (51%) are board members or C-level
Ed Lee, mayor, San Francisco
collaboration between citizens DQGLQFUHDVHJURZWK H[HFXWLYHVWKHUHVWDUHYLFHSUHVLGHQWV
Toni Lindau, president and director of EMBARQ, Brazil
and city leaders are crucial to the directors, or business-unit or department
success of infrastructure projects Respondents are willing to adapt KHDGV5HVSRQGHQWVDUHGUDZQIURP Stefan MajerKHDGRIWKH'HSDUWPHQWRI7UDIFDQGPHPEHURIWKH
Roughly half of all survey respondents their use of infrastructure, if they Western Europe, North America, Latin Magistrate, Frankfurt
assert that greater transparency are given the tools to track itMore America, the Middle East and Asia- Michael MuenterKHDGRI0D\RUV2IFHIRU3ROLF\3ODQQLQJ6WXWWJDUW
around public spending would be the than 70% say they would be likely to 3DFLF+DOIRIWKHFRPSDQLHV Tom MurcottH[HFXWLYHYLFHSUHVLGHQW,QWHUQDWLRQDO*DOH,QWHUQDWLRQDO
PRVWHIFLHQWZD\LQZKLFKWRLPSURYH change their energy/water represented in the sample earn more 6RQJGR6RXWK.RUHD
infrastructure and services in their consumption and transport usage if WKDQ86PLQDQQXDOJOREDOUHYHQXH
Eduardo Paes, mayor, Rio de Janeiro
cities; and 26% feel their city should they were given better access to 7RFRPSOHPHQWWKHVXUYH\QGLQJV
implement platforms to receive citizen information about their use of these WKH(,8FRQGXFWHGLQGHSWKLQWHUYLHZV Guilherme Penin, federal secretary of Port Policies, Brasilia
feedback on services to become more VHUYLFHV7KLVVKRXOGHQFRXUDJHFLW\ ZLWKFLW\OHDGHUVLQGXVWU\H[SHUWV Kais SamarraiKHDGRI8UEDQ'HYHORSPHQW$EX'KDEL8UEDQ3ODQQLQJ
VXVWDLQDEOH7KLVGHVLUHWRSDUWLFLSDWH leaders to invest in smart-grid DQGVHQLRUH[HFXWLYHVIURPDURXQGWKH Bill Tompson, senior economist, Organisation for Economic Co-operation
in the infrastructure conversation infrastructure, mobile-transit-tracking ZRUOG:HZRXOGOLNHWRWKDQNDOOVXUYH\ and Development (OECD), Czech Republic
highlights an opportunity for city applications and sensor technologies respondents, and the following
Mike TinskeyJOREDOGLUHFWRURI9HKLFOH(OHFWULFDWLRQDQG,QIUDVWUXFWXUH
leaders to engage the population to engage users and relay usage H[HFXWLYHV OLVWHGDOSKDEHWLFDOO\ IRUWKHLU
Ford Motor Company, Detroit
through more interactive LQIRUPDWLRQWRFLWL]HQV time and insights:
communication channels, such as David WagstaffKHDGRI+HDW6WUDWHJ\DQG3ROLF\IRUWKH'HSDUWPHQWRI(QHUJ\8.
PRELOHUHSRUWLQJ Respondents are eager to support Mark WattsH[HFXWLYHGLUHFWRU&&LWLHV&OLPDWH/HDGHUVKLS/RQGRQ8.
clean-energy initiatives, but
Respondents believe private- citizens are less aware of the
sector involvement is vital to value that water and waste
improving urban infrastructure projects can provide This is good
and servicesWhile most think that news for cities investing in energy
the public sector should lead these upgrades, but for cities trying to
initiatives, 82% say the government develop non-energy-related
VKRXOGZRUNWRDJUHDWHUH[WHQWZLWK sustainability initiatives, these results
the private sector to improve urban suggest they will face an uphill battle
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4 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 5 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

Introduction worse off a citys infrastructure is, the


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Among those who live in cities where
infrastructure is viewed as inadequate
today, more than half cite corruption or
misuse of funds as a leading
LPSHGLPHQW7KLVVKRXOGEHDZDNHXS
call to city leaders that they need to
demonstrate better leadership, greater
transparency and more accountability for
WKHLULQIUDVWUXFWXUHGHFLVLRQPDNLQJ
&LWL]HQVDQGEXVLQHVVH[HFXWLYHVZRXOG
also prefer to see city leaders invest in
PDLQWHQDQFHRIH[LVWLQJV\VWHPVDQG
services, more than emphasising
investment in brand new infrastructure,
Around the world, urban infrastructure is but they must be addressed if cities want mind, these systems will require which generally comes with a much
aging and populations are surging, WREHZHOOSRVLWLRQHGIRUWKHIXWXUH$V innovative thinking and strong leadership KLJKHUSULFHWDJ
forcing todays city leaders to make Michael Hupl, mayor of Vienna, asserts, WRUHDOLVHWKHVHSURMHFWV7KHVHDUH The most innovative city leaders have
tough decisions about infrastructure that Infrastructure development is an huge decisions that will have implications gotten in front of these challenges by
ZLOOLPSDFWJHQHUDWLRQVWRFRPH7KHVH opportunity for growth and for decades, says Dan Hoornweg, using lessons learned from their global
FKRLFHVZLOOGHQHWKHOHJDF\WKH\OHDYH competitiveness, but also for creating professor and research chair at the peers, partnering with citizens and the
and whether they are able to position and preserving jobs, especially in 8QLYHUVLW\RI2QWDULR,QVWLWXWHRI private sector to implement sustainable
WKHLUFLWLHVWRWKULYHLQWKHIXWXUH%XW FKDOOHQJLQJHFRQRPLFWLPHV Technology, and former lead advisor, on solutions that reduce congestion and
they also have to make these choices .HHSLQJWKHVHV\VWHPVDQGVHUYLFHV VXVWDLQDEOHFLWLHVWRWKH:RUOG%DQN system failures, while improving quality
ZLWKLQWKHFRQQHVRIOLPLWHGFLW\ operational, and readying them for the Infrastructure is like the bones of the RIOLIHIRUSHRSOHDQGEXVLQHVVHV7KHVH
budgets that must simultaneously QH[WJHQHUDWLRQLVDFRQVWDQWFKDOOHQJH city, so youve got to make choices with choices are not always easy and often
address the need for new or upgraded In developed-nation cities, roads, WKHORQJYLHZLQPLQG face social opposition, but, when leaders
transport, water, energy, IT and waste waterways, sewers systems and energy In emerging markets, city leaders are promise, and then deliver, long-term
V\VWHPV6XFKQDQFLDOVWUDLQVRIWHQOHDG grids are often decades old and many facing an even bigger challenge, as rapid value for the community, they are able to
to frustrating compromises, and city KDYHORQJVLQFHSDVVHGWKHLUH[SHFWHG population growth pushes already transform their urban infrastructure and
leaders must be ready to defend their OLIHF\FOHV7KHVHDJLQJV\VWHPVZHUH LQVXIFLHQWLQIUDVWUXFWXUHIXUWKHUEH\RQG position the city for a more prosperous
choices to public and private built with out-of-date technology, and are LWVFDSDFLW\7KHVHSUHVVXUHVUHVXOWLQ DQGVXVWDLQDEOHIXWXUHz
stakeholders, to ensure they have buy-in H[SHULHQFLQJDQLQFUHDVLQJQHHGIRU massive congestion, over-tapped water
IRUWKHVHLQYHVWPHQWV,QPDQ\FDVHV maintenance and upgrades to keep them systems, and unreliable access to energy
selling these projects to cash-strapped RSHUDWLRQDO DQG,77KHUHLVDYLWDOQHHGWRUHGXFH
WD[SD\HUVLVDPDMRUREVWDFOHDVFLW\ Well developed cities face the ZDVWHWKLVLQFOXGHVERWKWKHLQHIFLHQW
leaders try to convince citizens to FKDOOHQJHRIUHWURWWLQJLQIUDVWUXFWXUH use of infrastructure systems and the
VXSSRUWDQH[SHQVLYHXUEDQSURMHFWWKDW WKDWQRORQJHUWVWKHSXUSRVHVD\V amount of waste produced by city
may disrupt their environment and take 0DUN:DWWVH[HFXWLYHGLUHFWRURI& UHVLGHQWV7KHSODQHWLVUHHOLQJIURPWKH
\HDUVWRFRPSOHWH Cities Climate Leadership in London, a collective impact of cities, Mr Hoornweg
7RRYHUFRPHWKHVHQDQFLDODQGVRFLDO network of leaders from the worlds VD\V$QGDVXUEDQSRSXODWLRQVFRQWLQXH
obstacles, many city leaders are seeking megacities taking action to reduce to grow, the pressure on city leaders to
private-sector collaborators to take JUHHQKRXVHJDVHPLVVLRQV0DQ\RI build sustainable high-performing
DGYDQWDJHRILQQRYDWLYHQDQFLQJDQG these cities have been in reaction mode, infrastructure systems and services is
SURMHFWGHOLYHU\VROXWLRQV7KH\DUHDOVR repairing water mains, power grids and RQO\JRLQJWRLQFUHDVH,IZHGRQWJHW
creating platforms that allow citizens to URDGVDVSUREOHPVRFFXU%XWWRSRVLWLRQ QHZFLWLHVULJKWDQG[WKHH[LVWLQJ
share their feedback, learn about how themselves for the future, city leaders FLWLHVZHUHVFUHZHG
resources are being allocated and weigh need to think more strategically, Mr This is especially true for leaders in
LQRQZKLFKSURMHFWVVKRXOGEHIXQGHG :DWWVVD\V7KH\QHHGDQHZEOXHSULQW the cities where these systems are
Such relationship management may They cant just follow what other cities EUHDNLQJGRZQ$FFRUGLQJWRRXUVXUYH\
UHTXLUHH[WUDWLPHLQWKHHDUO\SKDVHVRI KDYHGRQHLQWKHSDVW citizens and business leaders
these projects, but they can streamline What is required is the implementation overwhelmingly blame city leaders for
delivery in the long run and help city of new technologies designed to support poor infrastructure maintenance, citing
OHDGHUVPDLQWDLQRQJRLQJVXSSRUW future populations with environmentally lack of political will, lack of skills among
These obstacles to infrastructure VXVWDLQDEOHVROXWLRQV)URPFOHDQHQHUJ\ RIFLDOVDQGSRRUJRYHUQPHQWDO
development can seem insurmountable, to cities redesigned with rapid transit in HIIHFWLYHQHVVIRUWKHVHSUREOHPV$QGWKH

6 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 7 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

1
Section They need to
develop better
Funding the right infrastructure governance
spurs economic prosperity structures, and
investment-planning
and management
solutions.
Bill Tompson, senior economist,
Organisation for Economic Co-operation
and Development (OECD), Czech
5HSXEOLF


Despite pessimism conveyed by many in Moreover, the price tag on these projects [And it] is not likely to end for the and Development (OECD): They need to making it their number-one
the media, global urban-infrastructure will be substantial: The American Society
If you dont foreseeable future, he adds that the develop better governance structures, LQIUDVWUXFWXUHFRQFHUQ<HWWKH
systems and services are in decent RI&LYLO(QJLQHHUVHVWLPDWHVWKDWWKH86 have effective costs of neglect and inaction will strongly and investment-planning and policymakers surveyed didnt even rank
VKDSH+RZHYHUFLW\OHDGHUVFDQQRW ZLOOKDYHWRLQYHVW86WUQWRJHWLWV infrastructure, DIIHFWXUEDQGHYHORSPHQW PDQDJHPHQWVROXWLRQV education in the top three on their lists,
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quarters of respondents assessed their LQIUDVWUXFWXUHEDFNLQVKDSH,Q
you dont have a /DJJLQJHFRQRPLFJURZWKGHSUHVVHGWD[ JRYHUQPHQWRIFLDOVEXWWKHRXWFRPHV between the priorities of business leaders
current systems as adequate today, fully
68% say they will need to make
Germany, a government-appointed
commission highlighted that the country
successful city.
Isabel Dedring, deputy mayor for
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present challenges for governments
will be worth it if they can secure buy-in
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win the trust and support of private
VXEVWDQWLDOLQYHVWPHQWVZLWKLQWKHQH[W ZLOOQHHGWRVSHQGEQ 86EQ  7UDQVSRUW/RQGRQ VHHNLQJWRIXQGWKHVHPDVVLYHSURMHFWV attract more businesses to the local citizens and the business sector, they
YH\HDUVWRNHHSWKHVHV\VWHPV DQQXDOO\IRUWKHQH[W\HDUVWRDGGUHVV It is leading many city leaders to build HFRQRP\7KLVLVRQHDUHDZKHUH need to invest in the infrastructure
functioning and to meet the needs of LWVLQIUDVWUXFWXUHGHFLHQFLHVDQG0H[LFR But the question remains: where will stronger relationships with the private policymakers and business leaders systems and services that these
IDVWJURZLQJSRSXODWLRQV7KLVLV recently raised its infrastructure- that money come from? Many countries sector in order to take advantage of DJUHH1HDUO\KDOIRIHDFKJURXS FRQVWLWXHQWJURXSVYDOXHWKHPRVW
especially true of Latin America and VSHQGLQJJRDOWRWUQSHVRV are already falling short of infrastructure- DOWHUQDWLYHQDQFLQJRSSRUWXQLWLHVRU333 suggested that encouraging Rio de Janeiros mayor, Eduardo Paes,
$VLD3DFLFZKHUHWKHVWDWHRI 86EQ QHDUO\WZLFHWKHWUQSHVR LQYHVWPHQWSURPLVHV,Q4DWDUIRU arrangements; and to engage citizens multinational companies to set up is doing just that, through several
infrastructure is more dire44% and JRDODQQRXQFHGODVW-XO\6ROLG H[DPSOHJRYHUQPHQWVSHQGLQJIHOO more effectively in the infrastructure- business should be among the top programmes designed to prioritise school
31%, respectively, say their relationship building makes good sense, in 2014 from the previous year; and, in management process, to win their buy-in SULRULWLHVRIFLW\OHDGHUVKLS7KLV GHYHORSPHQW(GXFDWLRQKDVDGLUHFW
infrastructure is currently inadequate or as it enables cities to deliver the Brazil, infrastructure spending outside of IRUWKHVHFRVWO\HQGHDYRXUV7KHVH DOLJQPHQWLVEHQHFLDOIRUFLW\OHDGHUV impact on long-term economic growth
ZLOOEHFRPHVRLQWKHQH[WYH\HDUV infrastructure systems and services they the World Cup and the Olympic venues economic conditions require city leaders who need to win public-sector support DQGKXPDQGHYHORSPHQWKHVD\V6LQFH
suggesting a heightened sense of need, both to improve quality of life for has fallen dramatically, leaving many of to take a more strategic approach to for major projects that will deliver the 2009, his city has invested more than
urgency in these regions to invest in new citizens and to attract the multinational the longer-term investments in rapid- project planning and stakeholder most economic value for all of their 5EQ 86P WREXLOGDQGXSGDWH
V\VWHPVDQGVHUYLFHV businesses that are often vital to WUDQVLWV\VWHPVFDQFHOOHGRUGHOD\HG,Q management, and a keener eye towards FXUUHQWDQGIXWXUHUHVLGHQWV VFKRROVDQGFKLOGFDUHFHQWUHV0U3DHVLV
5HJDUGOHVVRIWKHUHJLRQQGLQJWKH HFRQRPLFJURZWK,I\RXGRQWKDYH Europe, Mr Hupl blames budget controlling budgets and managing Respondents are not all aligned on also currently supporting the Factory of
funds to support these improvements will effective infrastructure, you dont have a consolidation and continual government- stakeholder relationships, says Bill KRZWRJHWWKHUH+DOIRIH[HFXWLYHVLQ Schools project to build more than 136
be one of the biggest challenges city successful city, says Isabel Dedring, DXVWHULW\HIIRUWVLQWKH(8IRUWKHODFNRI Tompson, a senior economist with the the survey said improving education new schools in the city in order to
OHDGHUVIDFHLQWKHFRPLQJ\HDUV GHSXW\PD\RUIRU7UDQVSRUW/RQGRQ IXQGLQJIRULQIUDVWUXFWXUHXSJUDGHV Organisation for Economic Co-operation should be the top priority for city leaders, increase the number of children in

The infrastructure and services in the city where I principally live or work are... Survey respondents affirming that their city needs to improve maintenance and operations more than it requires
% respondents new physical infrastructure
% respondents
32.3 43.0 15.2 8.6 0.7 0.2
50 66 63 72 63 61 71
80
40 70

30 60

50
20
40
10 30

0 20
10
Adequate and will Adequate but needs Adequate but on Inadequate and Seriously deficient Non-existent for
remain so for the investment in the current trends will needs investment for most purposes most purposes 0
next 5 years next 5 years be inadequate in now Global average Middle East North America Europe Latin America Asia-Pacific
the next 5 years
Source: Economist Intelligence Unit survey, November 2014.
Source: Economist Intelligence Unit survey, November 2014.

8 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 9 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

In your opinion, which areas of your countrys urban infrastructure and services require most attention in the
immediate future?
This refers to new infrastructure and services as well as upgrades and improved maintenance for existing infrastructure.
Road and rail top their concerns
%XVLQHVVH[HFXWLYHVDQGSROLF\PDNHUVGR If you can show
that it will result in a
DOHDGLQJJRDO
In the Middle East, respondents were
agree that transportation infrastructure more likely to cite airports, rather than
% respondents
VKRXOGEHDSULRULW\IRUFLW\OHDGHUV,Q better, faster, metros, as a focal point for infrastructure
33.7 52.1 20.1 33.7 25.9 16.6 19.1 13.0 9.3 14.9 6.6
60
most cities, those projects prominently
cheaper, greener or GHYHORSPHQWUHHFWLQJWKHUHJLRQV
IHDWXUHUDLODQGURDGV\VWHPV([HFXWLYHV HIIRUWVWREHFRPHDJOREDOHFRQRPLFKXE
50
and policymakers ranked metros and rail more reliable system, The Middle East is currently home to
40 among their cities top infrastructure you can sell it to the several major airport projects, including
30

20
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sustainable methods of transportation for
public.
David Wagstaff, head of Heat Strategy and
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0
This is perhaps why many of the year by 2017 and to 40m per year by
Transport Transport Transport Information Energy Energy Water Water Waste Waste No areas
biggest urban-infrastructure projects DFFRUGLQJWRUHFHQWUHSRUWV$EX
roads metros and airports & communi- generation distribution supply & wastewater collection treatment & require currently underway involve building London, is considered one of the most Dhabi wants to be a global capital with
railways cations distribution treatment recycling attention
technology major transportation centres and metro VLJQLFDQWLQIUDVWUXFWXUHLQLWLDWLYHVHYHU sustainable economic growth, says Mr
Source: Economist Intelligence Unit survey, November 2014.
OLQHV9LHQQD&HQWUDO6WDWLRQIRU XQGHUWDNHQLQWKH8.,WVDIDQWDVWLF 6DPDUUDL7KHDLUSRUWSURMHFWDORQJZLWK
H[DPSOHLVRQHRIWKHELJJHVW SURMHFW0V'HGULQJVD\V7KHQHZOLQH massive investments in other
IXOOWLPHHGXFDWLRQ,QWKLVLWLV Two-thirds of respondents want city ,QYHVWLQJLQH[LVWLQJLQIUDVWUXFWXUHFDQ infrastructure and construction projects will add capacity and alleviate congestion infrastructure systems, as well as schools
important to recognise that social leaders to prioritise maintenance of deliver a lot of value relatively quickly, in Europe; the station itself was recently on the Tube, which is a major challenge and social programmes, is part of that
infrastructure is as vital as physical H[LVWLQJV\VWHPVDQGVHUYLFHVRYHUQHZ QRWHV0V'HGULQJ completed and the surrounding IRU/RQGRQVFLWL]HQV,QYHVWLQJLQ PDVWHUSODQ
infrastructure when it comes to building physical infrastructure, likely because UHGHYHORSPHQWZLOOEHFRQFOXGHGLQ projects that directly address quality-of-
DQHFRQRPLFDOO\G\QDPLFFLW\$QRWKHU these projects are generally less costly, 7KLVVHYHQ\HDUP 86EQ  OLIHLVVXHVKHOSVRIFLDOVOLNH0V'HGULQJ Out of sight, out of mind: Tackling
key disconnect concerns how have shorter turnaround times, and are a project serves as a daily transport hub strengthen the trust and support of the hidden infrastructure systems
LQIUDVWUXFWXUHVSHQGLQJLVEHVWDOORFDWHG PRUHHIFLHQWXVHRIUHVRXUFHV for 145,000 people and 1,000 trains, FRPPXQLW\IRULQIUDVWUXFWXUHHQGHDYRXUV ([HFXWLYHVDOVRSXW,7DQGURDG
LQFOXGLQJHLJKWH[SUHVVWUDLQOLQHVDV Not every region has the same set of infrastructure among their top three
well as linking passengers with bus lines, priorities, or the same quality-of-life FRQFHUQV3ROLF\PDNHUVDUHHTXDOO\
Case Study 1 WKHJURZWKRIWKHFLW\EHIRUH0V9DQ%HXNHQVWDWHV6R
tram lines and subway stops throughout FKDOOHQJHV,QWKH$VLD3DFLFUHJLRQIRU concerned about IT systems, although
Amsterdam city leaders learn the value of compromise the city agreed to postpone the development of the housing
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efforts to encourage citizens to use among the top three infrastructure WKHWRSRIWKHLUOLVWV7KLVGLVSDULW\LVQRW
Many cities face increasing pressure to meet the needs of a WKHFLW\WKHUHVLGLQJFRPSDQLHVFDQVWD\WLOO7KHFLW\
public, rather than private transportation, FKRLFHVUHHFWLQJWKHVWHDG\GHPDQGIRU VXUSULVLQJ0RVWFLWL]HQVDUHPRUHOLNHO\
JURZLQJSRSXODWLRQLQDQDOUHDG\FURZGHGDUHD7KLVFDQ will grow closer, however, so an effort will have to be made to
0U+lXSOVD\V7KHFRPSUHKHQVLYHXVH new energy sources as local populations to be concerned about infrastructure that
damage the relationships between different parts of a city or reduce long-term environmental impact on the upcoming
of public transport and fast access to JURZ$OPRVWEQSHRSOHLQWKHUHJLRQ WKH\FDQVHHEUHDNLQJGRZQ&RQJHVWLRQ
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inner-city green spaces are indicators are currently without reliable access to road closures, train delays and other
land and resources in a struggle to accommodate the needs In October 2014 the mayor also requested the city council
that justify Viennas calling itself a model electricity, and demand for energy is transportation failings are indicators that
RIFLWL]HQVDQGEXVLQHVVHV+RZHYHULWGRHVQWKDYHWREH DSSURYHP 86P LQIXQGLQJIRUFRQVWUXFWLRQRIWKH
HQYLURQPHQWDOFLW\ H[SHFWHGWRDOPRVWGRXEOHE\ LQIUDVWUXFWXUHLVLQQHHGRILQYHVWPHQW
that way, says Leonie Van den Beuken, head of Spatial QHZVHDORFNV\VWHP7KHQDWLRQDOJRYHUQPHQWZRXOGRQO\
$QG/RQGRQVQLQH\HDUEQ according to the Asian Development 7KH\GRQRWVHHSRWKROHVRUWUDIFMDPV
Planning and Environmental Issues for the Port of pay for the sea lock once it reached its 100-year lifespan, in
86EQ &URVVUDLOSURMHFWWREXLOGD Bank (ADB), pushing these city leaders in their water, sewage or energy
$PVWHUGDP6KHDUJXHVWKDWJRRGUHODWLRQVKLSPDQDJHPHQW UHFRXQWV0V9DQGHQ%HXNHQ:DLWLQJDQRWKHU
118-km railway line across Greater to make building new sources of energy infrastructure, so it is easy to assume
and a willingness to compromise grant participating \HDUVZDVQRWDJRRGRSWLRQIRUWKHFLW\VHFRQRP\
stakeholders and citizens the most value when making key At about the same time, talks took place between railroad
LQIUDVWUXFWXUHGHFLVLRQV authorities and the Port about a dedicated cargo line at the In the city in which you are based, which, if any, of the following factors would produce the greatest
7KHRIFHVRIWKHSRUWDQGWKHFLW\ZHUHLQYROYHGLQDFODVK $PVWHUGDPUDLOURDGVWDWLRQ7KHGHGLFDWHGFDUJROLQHKDGWR infrastructure and services improvements?
RYHUZKRZRXOGJHWDFFHVVWRODQGEHORQJLQJWRWKHSRUW7KLV be given up so the railroad authorities can deal with the Select up to three.
% respondents
is one of the oldest parts of the port, but still very good KHDY\RZRISHRSOHXVLQJWKHSODWIRUPVIRUWUDLQWUDYHO
quality, able to serve the largest ships, and incorporate more ZKLFKZDVOHDGLQJWRVDIHW\LVVXHV%\ZRUNLQJZLWKWKH 35.7 53.8 44.5 35.5 37.7 21.8 12.0 15.2 1.0
modern storage and shipping technology all key railroad group and their customers, they were able to create 60

investments necessary to support the burgeoning Amsterdam a schedule using shared lines that does not impact shipping 50

HFRQRP\%XWFLW\OHDGHUVZDQWHGWRXVHWKHODQGWRFUHDWH VFKHGXOHV7KLVZDVDQRWKHUFDVHZHUHDOOSDUWLHVGHFLGHG 40
new city areas, considered crucial to accommodate the QRWWRPD[LPLVHWKHLURZQVWDNHVDWWKHFRVWVRIRWKHUVEXW 30
JURZLQJSRSXODWLRQLQWKHDOUHDG\GHQVHO\SRSXODWHGFLW\ to turn to a mutual gains approach and cooperation, she 20
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10
groups endeavoured to listen to each others case and Its all about viewing stakeholders as partners rather than
0
FROODERUDWHWRZDUGPXWXDOJRDOV adversaries, and aspiring to meet common goals for the good
More funds for Greater use of Greater Better training of Better use of IT Greater Greater Establishing No improvement
After many meetings and in-depth studies, both parties RIWKHFLW\:HGRQWORRNDWWKHVHFKRLFHVDVZLQVDQG infrastructure public-private transparency in public sector to increase centralisation of enterprise from centres of is needed
and services partnerships for public spending officials overall efficiency infrastructure private sector excellence
DFNQRZOHGJHGWKHLUPXWXDOLQWHUHVWDQGFRGHSHQGHQFH ORVVHV:HORRNDWWKHPDVPXWXDOJDLQVWKDWEHQHWXVDOO infrastructure on infrastructure and services
Recognising that each project offered strategic value for the 0V9DQGHQ%HXNHQVD\V7KH$PVWHUGDP3RUWVKDYHDFOHDU and services and services procurement
Source: Economist Intelligence Unit survey, November 2014.
local economy, it became clear the land was not needed for SDWKIRUJURZWKDJDLQz

10 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 11 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

VD\V0U3DHV+HVKRXOGNQRZ/DWLQ
Greater transparency in public spending is a top factor for improving
INSIGHTS FROM America is more focused on transparency
infrastructure and services
% respondents in public spending as a means to improve
infrastructure and service delivery than
44 43 46 39 54 38
Road and Rail Top their Concerns One will serve one million people while NPEULGJHFRQQHFWLQJ9LGLQLQ 60 DQ\RWKHUUHJLRQ
UHGXFLQJWUDIFFRQJHVWLRQLQ3DQDPDV Bulgaria, and Calafat in Romania has 50
Good transport infrastructure is essential FDSLWDOFLW\ reduced journey times from three hours The people want a say
40
to moving people and goods in any city, Similarly, FCC has also begun to just ten minutes, and has become a Such transparency can go a long way
30
and it is a top priority for citizens, construction of Line Two of the Lima strong symbol of what can be achieved towards securing public support, which is
20
DGPLQLVWUDWLRQVDQGEXVLQHVVHV1HZ 0HWUR$WNPORQJDQGHPSOR\LQJ through cross-border collaboration crucial to any successful infrastructure
road and rail projects, as well as more than 11,000 people, it is the FRQQHFWLQJ(XURSH(8&RPPLVVLRQHU 10 project, especially when it has a
XSJUDGHVRUPDLQWHQDQFHWRH[LVWLQJ biggest infrastructure project currently for Regional Policy, Johannes Hahn, 0 VLJQLFDQWSULFHWDJ5HJDUGOHVVRIKRZ
Global average Middle East North America Europe Latin America Asia-Pacific
systems, have the power to transform XQGHUZD\LQ/DWLQ$PHULFD7KLV praised it for ushering in a whole PXFKEHQHWDSURMHFWZLOOEULQJWRD
Source: Economist Intelligence Unit survey, November 2014.
the social and economic dynamics of a mega-project will improve the range of opportunities for business city, its perceived value will rely heavily
FLW\+RZHYHUPHWLFXORXVSODQQLQJDQG quality of life in Lima and and research on both sides of the RQZKHWKHULWKDVSXEOLFVXSSRUW
H[SHULHQFHDUHUHTXLUHGLQRUGHUWR reducing travel time for millions ZDWHU these systems are always fully infrastructure needs, build transparency When planning infrastructure projects
balance the demands of all those RI3HUXYLDQV7KHSURMHFWZLOO With metro projects underway IXQFWLRQLQJ into the way they allocate funds and in the future, it will be necessary to
DIIHFWHGWKLVLVDPXVW require an investment of in Riyadh, Doha, Lima and Policymakers are more aware of these create opportunities for citizens to offer communicate with customers and
In April 2014, FCC inaugurated Line DSSUR[LPDWHO\PLOOLRQ Bucharest FCC hidden systems and the massive feedback on project development, they citizens in a more comprehensive and
One of the Panama Metro, Central HXURVZLWKWKHUVWVHFWLRQ Construction will continue investments that are required to can win their trust and support for these transparent way, says Stefan Majer,
$PHULFDVUVWVXFKWUDQVSRUWV\VWHP due for completion in to take the same PDLQWDLQDQGXSJUDGHWKHP7KH\DUH YLWDOLQYHVWPHQWV7KLVUHODWLRQVKLS KHDGRIWKH'HSDUWPHQWRI7UDIFDQG
We are proud to be able to say that  approach of planning and cognisant of the far-reaching economic building process should include sharing PHPEHURIWKH0DJLVWUDWH)UDQNIXUW
through planning and engagement with One of the best engagement that has impact of infrastructural failure, both in real data about the cost and value of the That means communicating the value of
many stakeholders we managed to H[DPSOHVRIWKH successfully built over terms of the hard costs related to project, and getting the publics feedback potential projects, and listening to the
deliver the project in record time, in just transformative impact of 200 kilometres of high UHDFWLYHO\[LQJIDLOHGHQHUJ\JULGVRU RQWKHSODQ6NLSSLQJWKLVVWHSPD\VDYH concerns of customers and citizens
RYHUWKUHH\HDUV7KH6HFUHWDU\RI transport infrastructure is speed railway as well as broken water mains in as little time as time on the front end, but it can lead to UHJDUGLQJWKHQDQFLDOHQYLURQPHQWDO
Panama Metro, an agency of the the New Europe Bridge, thousands of kilometres of possible, and the economic impact to backlash against the project, mistrust of DQGVRFLDOLPSDFW$NH\SDUWRIWKLVLV
National Government that commissioned built by FCC, and roads, dual carriageways businesses affected by these city leaders, and dissatisfaction with recognising the relationship between
the construction and will manage the opened to the public in Miguel Jurado and motorways all over the EUHDNGRZQV project outcomes, even when they government, the private sector and the
new transit system, estimates that Line 'HFHPEHU7KH Chairman of FCC Construction ZRUOGz But its hard to convince citizens to GHOLYHUWKHLQWHQGHGYDOXH,QWKHVXUYH\ citizens who will be using the
support these projects, particularly if it respondents ranked greater transparency infrastructure and services; even if a
PHDQVUDLVLQJWKHLUUDWHV0RVWDUHORDWK around public spending (45%) among SURMHFWGHOLYHUVUHDOEHQHWVWKHVHZLOO
WRVXSSRUWH[SHQVLYHXSJUDGHSURMHFWV the top three factors that would produce not be realised without building support
that might impact their utility bills, the greatest infrastructure and services IURPDOOVWDNHKROGHUV
although, when they break down, even LPSURYHPHQWVLQWKHLUFLWLHV7KLVZDV When city leaders take the time to win
for a few hours, citizens are outraged, the second-most frequently cited area for public support, it saves time and money
VD\V0U+RRUQZHJ1RRQHZDQWVWRSD\ LPSURYHPHQWDKHDGRIJUHDWHUIXQGLQJ in the long run, and can turn these
to bury the power lines, but, when an ice ,WLVH[WUHPHO\LPSRUWDQWWRDOORZ investments into major public success
storm knocks out their power for four citizens to have their say and get VWRULHV&RQVLGHU6DQ)UDQFLVFRV
GD\VWKH\DUHLQFHQVHG involved in the management of the city, 86P5RDG5HSDYLQJDQG
City leaders cant ignore the failings of 6WUHHW6DIHW\%RQG3URJUDP$WWKHWLPH
these hidden systems, so they have to the city had a tremendous backlog of

When planning
do a better job of building trusting street repair and replacement projects,
relationships with private citizens and EXWGLGQWKDYHDEXGJHWVXIFLHQWWR
business leaders, and educating them infrastructure projects DGGUHVVWKLV
about the importance of infrastructure in the future, it will be 5DWKHUWKDQUDLVLQJWD[HVWRUDPSXS
investments, says David Wagstaff, head spending, city leaders asked voters to
of Heat Strategy and Policy for the
necessary to approve a bond programme to fund the
Department of Energy and Climate communicate with repairs, giving them the power to decide
&KDQJH '(&& LQ/RQGRQ,I\RXFDQ customers and citizens whether the city should pay to improve
show that it will result in a better, faster, WKHFRQGLWLRQRIWKHFLW\VURDGV7KH
cheaper, greener or more reliable
in a more mayor encouraged support for the
V\VWHP\RXFDQVHOOLWWRWKHSXEOLF comprehensive and initiatives through media campaigns and
This is all part of managing
VWDNHKROGHUUHODWLRQVKLSV:KHQFLW\
transparent way.
Stefan Majer, head of the Department of
public meetings to discuss the state of
road infrastructure, and added a
leaders take the time to communicate 7UDIFDQGPHPEHURIWKH0DJLVWUDWH measure mandating local hiring for road
$VHFWLRQRI/LQH2QHRIWKH3DQDPD&LW\0HWUREXLOWE\)&&&RQVWUXFWLRQ
with citizens about on-going Frankfurt projects that appealed to community

12 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 13 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

We knew we
couldnt generate any
Muenter, head of the Mayors Policy
2IFHIRU6WXWWJDUW,QUHWURVSHFWKH
part of the PPP developing Songdo IBD, a
86EQHFRFLW\QHDU6HRXO6RXWK
2
Section

revenue from the


thinks that, if the mayor had delayed
construction in order to build public
.RUHDZLWKWKHSXEOLFVHFWRUVSRQVRU
,QFKHRQ0HWURSROLWDQ&LW\ Managing infrastructure delivery
park, but it was key to buy-in for the project and listened to the One of the biggest challenges for
protestors concerns, he might have Songdo is making sure local stakeholders
the project because it DYRLGHGVRPHRIWKHEDFNODVK7KHUH support the project, which is one of the
gives people should have been a longer discussion reasons the Gale International team
somewhere desirable process that included opportunities for recommended the inclusion of a 100-acre


open-ended dialogue with the public, Mr park in the middle of the city and
to go. 0XHQWHUVD\V,QVWHDGSURWHVWRUVKHOGD prioritised construction of it over any of
7RP0XUFRWWH[HFXWLYHYLFHSUHVLGHQW mass demonstration against the project, WKHRIFHEXLOGLQJVDSDUWPHQWVRURWKHU
International, Gale International,
GUDZLQJPRUHWKDQSHRSOH XUEDQVWUXFWXUHVLQWKHSODQ:HNQHZ
6RQJGR6RXWK.RUHD
7KLVLVDFODVVLFH[DPSOHRIWKH we couldnt generate any revenue from
importance of on-going attention to the park, but it was key to the project
JURXSV7KHERQGZDVDSSURYHGZLWKD community relations in the success of because it gives people somewhere


68% vote, and the programme now LQIUDVWUXFWXUHSURMHFWV(YHQWKRXJK GHVLUDEOHWRJR0U0XUFRWWVD\V The successful delivery of any with new methods for infrastructure
VSHQGV86PSHU\HDURQURDG public-opinion polls show the project The Gale International team had to infrastructure project is about more than planning, and the engineers and planners
The population in
XSJUDGHVDQGPDLQWHQDQFHSURMHFWV currently has support from 58% of the sell local-government decision-makers on PHHWLQJGHDGOLQHVRUEXGJHWPDQGDWHV who work in the private sector can help the cities has
Our city streets show marked community, protesters still gather on the the idea of starting with the park, which, Its about effectively managing resources WKHPGRWKDW increased at the same
improvements due to the voter-approved steps of city hall once a week to voice VRIDULWKDVKDGWKHGHVLUHGHIIHFW(YHQ and demonstrating the value of the
URDGUHSDYLQJERQGZKLFKLVH[FHHGLQJ WKHLUGLVFRQWHQW though the city is not completely built, it SURMHFWWRWKHFLW\VVWDNHKROGHUV,I When funding and project planning
time as available tax
its goals, making streets smoother and has become a destination for citizens citizens dont feel like the project is fall short dollars for
safer, and creating jobsall without Its about quality of life from Seoul and many nearby worth the investment, or that city leaders Governments around the world have infrastructure have

UDLVLQJSURSHUW\WD[HV0U/HHVD\V7R The most innovative city leaders go communities, which encourages new ignored their concerns, or abused the ambitious plans to invest in
maintain support, the city hosts websites beyond merely getting citizen support for investors and occupiers to choose funds, these projects will be viewed as infrastructure, but follow-through and
declined.
with street maps showing citizens the LQIUDVWUXFWXUHSURMHFWV7KH\YLHZ 6RQJGR$QGE\GHYHORSLQJWKHUHDO failures, regardless of whether they met IXQGLQJFDQEHDFKDOOHQJH(YHQZKHQ Stefan Majer, head of the Department of
7UDIFDQGPHPEHURIWKH0DJLVWUDWH
progress being made, and giving them public-infrastructure investment as an estate around the edges of the park, it WKHLUJRDOV7KLVLVHVSHFLDOO\WUXHLQ national governments announce grand
)UDQNIXUW
opportunities to point out roads that still anchor point and enabler of social increases property value and quality of cash-strapped cities, where sceptical plans to invest huge sums of money in
QHHGZRUN5DWKHUWKDQDVVXPLQJWKDW LQWHJUDWLRQ)URPEXLOGLQJSDUNVVFKRROV OLIHIRUIXWXUHLQKDELWDQWV(YHU\GHVLJQ FLWL]HQVQHHGWRWUXVWFLW\RIFLDOVDELOLW\ infrastructure upgrades, there never
LQLWLDODSSURYDOZDVVXIFLHQW6DQ and bike lanes, to implementing policies decision we make is about enhancing the WRGHOLYHURQWKHLUSURPLVHV VHHPVWREHHQRXJKWRJRDURXQG/DFN likely to cite lack of funds as an
Francisco maintained its engagement and programmes that ensure all TXDOLW\RIOLIH City leaders can overcome such of funds was cited by more than one- impediment than in other regions, and
with city residents, sharing information community members needs are met, Stuttgart city leaders are making doubts and increase their chances of third of respondents as a leading DUHE\H[WHQVLRQOLPLWHGLQWKHFKRLFHV
and inviting continuous feedback, which these leaders recognise that the similar choices as they strive to build success by building stronger relationships impediment to infrastructure and service WKH\FDQPDNH7KHSRSXODWLRQLQWKH
helped to win citizens initial support for infrastructure decisions they make today infrastructure that supportsrather than with the community, the private sector, delivery; even when they do have access cities has increased at the same time as
the project and maintain that support will determine the quality of life for hinderssocial integration as the citys DQGRWKHUSXEOLFRIFLDOVZKRDUH to funds, many city leaders struggle to DYDLODEOHWD[GROODUVIRULQIUDVWUXFWXUH
WKURXJKRXWWKHSURJUDPPH FLWL]HQVJRLQJIRUZDUG7REH SRSXODWLRQJURZVVD\V0U0XHQWHU7KDW invested in the planning and delivery of decide which urban-infrastructure project KDYHGHFOLQHGVD\V)UDQNIXUWV0U0DMHU
In comparison, there are countless competitive, you cant just invest in includes adding rapid transit lines to ease WKHVHSURMHFWV7KHVHFROODERUDWLRQVFDQ WRDGGUHVV5HFHQWO\IXQGLQJVKRUWIDOOV Towns such as Frankfurt are no longer
H[DPSOHVRIXUEDQLQIUDVWUXFWXUHSURMHFWV LQIUDVWUXFWXUHSURMHFWVVD\V.DLV congestion, carrying out rolling also bring fresh ideas to the table, Mr have been especially common in Western capable of shouldering the costs, so they
that were pushed through without public 6DPDUUDLKHDGRI8UEDQ'HYHORSPHQW renovations to 300 parks and squares +RRUQZHJVD\V&LWLHVQHHGWRFRPHXS Europe, where respondents were more DUHGHSHQGLQJRQWKHQDQFLDOVXSSRUWRI
support and faced serious public backlash IRU$EX'KDELV8UEDQ3ODQQLQJ&RXQFLO and implementing an inner-city
DVDUHVXOW2QHRIWKHPRUHQRWDEOH There must also be tremendous development model that requires all new Leading obstacles to urban infrastructure and services
H[DPSOHVLVWKHRQJRLQJ6WXWWJDUW investment in social development and housing developments in the city to % respondents
Cited by policy-makers Cited by business executives
project, a railway and urban-development SURJUDPPHV GHGLFDWHDWOHDVWRIDWVWRORZ
initiative that includes 57 km of new This attitude aligns with our survey income housing, in order to ensure 22 14 28 36 39 40 30 36 54 33 32 18 17 25 30 13 15 17
55
railways, 30 km of tunnels and 25 km of results, which show three out of four families who work in the city can also live 50
KLJKVSHHGOLQHV3URWHVWRUVDUJXHWKDW respondents agree that social integration LQWKHFLW\>7KHKRXVLQJSROLF\@ZDV 45
40
WKHEQ 86EQ SULFHWDJDQG is an important factor in their citys very controversial with the real-estate 35
30
related environmental impact, make it a LQIUDVWUXFWXUHDQGVHUYLFHGHOLYHU\ people, but our ultimate goal was social 25
EDGLQYHVWPHQW-XVWEHIRUHWKHSURMHFW However, making social integration part FRKHVLRQ0U0XHQWHUVD\V:HZDQWD 20
15
was scheduled to break ground in 2007, of infrastructure planning requires FLW\ZKHUHHYHU\RQHFDQOLYH:KLOHWKH 10
5
they delivered 67,000 signatures against thoughtful urban planning, addressing real-estate community fought the plan,
0
it, but the mayor moved the project the long-term emotional, as well as the government received widespread Lack of Poor Lack of political Lack of Lack of skills, Lack of an Corruption or Lack of an Focus on new
adequate governmental will or sense of public funds knowledge or effective misuse of funds appropriate investments over
IRUZDUGDQ\ZD\ physical needs of the community, says support from communities and political suppliers effectiveness urgency training of procurement earmarked for regulatory necessary
That infuriated those who were 7RP0XUFRWWH[HFXWLYHYLFHSUHVLGHQWDW JURXSVz officials in this process infrastructure and framework maintenance
area services
against the project, says Michael *DOH,QWHUQDWLRQDO*DOH,QWHUQDWLRQDOLV
Source: Economist Intelligence Unit survey, November 2014.

14 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 15 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

WKHIHGHUDOJRYHUQPHQWDQGWKHVWDWHV
Even when cities are able to secure Success will come
about only if
infrastructure and services, although
policymakers were almost twice as likely
Which single sector would be most effective in upgrading infrastructure
and services in your city?
outside of their own team for ideas, city
leaders also need to take advantage of
funds to support major projects, money to choose themselves (62%), compared % respondents the innovative minds these companies
DORQHZRQWVROYHDOORIWKHLUSUREOHPV governments, WREXVLQHVVH[HFXWLYHV  
Policy-makers Business executives
bring by involving them earlier in the
Space constraints, public opposition, suggesting that the public sector may be 62 37 1 22 1 1 3 4 32 36 SODQQLQJSURFHVVVD\V0U+RRUQZHJ
infrastructure 65
environmental risks, regulatory issues overestimating its ability to meet citizens 60 Engineers need to take a more active
and lack of project-management developers and LQIUDVWUXFWXUHQHHGV
55
50 role in these projects to optimise
H[SHUWLVHDUHMXVWDIHZRIWKHREVWDFOHV industry work Regionally, Latin Americas public 45
40 LQIUDVWUXFWXUHGHFLVLRQPDNLQJKHVD\V
35
urban leaders face when trying to sector faired worst: just 27% of They are the ones that can help cities
together on a global 30
25
LPSOHPHQWPDMRUSURJUDPPHV respondents favoured the public sector to JXUHRXWKRZWRRSHUDWHZLWKOHVVVWDII
,Q%UD]LOIRUH[DPSOHWKH
government is lending money to cities
scale.
Mike Tinskey, global director of Vehicle
lead these projects, compared to around
50% of those in North America, the
20
15
10
5
less energy, and less environmental
LPSDFW
0
across the nation in an effort to spur (OHFWULFDWLRQDQG,QIUDVWUXFWXUH)RUG 0LGGOH(DVWDQG$VLD3DFLF(XURSHDOVR They also bring a new frame of
The public The private The charitable Citizens All of these
0RWRU&RPSDQ\'HWURLW sector sector sector themselves
infrastructure development to improve lagged behind in their faith in reference to the project, which can help
XUEDQPRELOLW\+RZHYHUWKHUHLVVWLOO JRYHUQPHQWHIIHFWLYHQHVV Source: Economist Intelligence Unit survey, November 2014. city leaders make better design
little local governance or oversight of caused by the red tape, by making decisions, says Gale Internationals Mr
these initiatives, says Toni Lindau, simple changes to the process, such as Making the business case Murcott, points to the companys own
Public sector believed to be most effective for upgrading infrastructure
president and director of EMBARQ Brazil, DSSURYDOVIRUURDGFRQVWUXFWLRQ%HIRUH However, everyoneeven public-sector and services by region early planning on the Songdo project in
a programme of the World Resources the work could only begin when 500 RIFLDOVDJUHHGWKDWWKHSXEOLFVHFWRU % respondents 6RXWK.RUHDZKHQKHXUJHGFLW\RIFLDOV
Institute (WRI), to support sustainable NLORPHWHUVZHUHOLFHQVHGKHVD\V1RZ FDQWGRLWDORQH)XOO\RI 27 37 54 49 52
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urban-transport and urban-planning we divided the licenses in tranches of respondents (and 84% of policymakers) 55 EULGJHWRFRQQHFWWKHDLUSRUWWR6RQJGR
50
VROXWLRQV 25km so that if there is an easier stretch agree that the government should work 45 The bridge would cut travel time from 90
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35
investments in its infrastructure, despite ZRUNFDQEHJLQRQLW:LWKWKLVFKDQJHLW infrastructure and services, and more 30 point for multinational companies to set
25
its rapid urbanisation in recent decades, is no longer necessary to wait for the than half (54%) said better use of PPPs 20
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10
chaotically, with little infrastructure that are located in environmentally WRXUEDQLQIUDVWUXFWXUHDQGVHUYLFHV7KLV 5 agreed that, to make Songdo IBD a truly
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Latin America Europe North America Middle East Asia-Pacific
receiving money to upgrade these changes) can make things much more and business value the private sector can infrastructure was crucial to success, he
Source: Economist Intelligence Unit survey, November 2014.
systems, most Brazilian city leaders have HIFLHQW bring to these initiatives, including VD\V%ULQJLQJSULYDWHVHFWRUPLQGVWR
QRH[SHULHQFHLQPDQDJLQJODUJH opportunities for risk sharing, and the planning table can help city leaders
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money these cities have received in their new ideas Public-sector organisations are not includes things such as depreciating Partnerships have to offer a good return WKH\PDNHEHWWHUGHFLVLRQVDVDUHVXOW
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plans lack additional budget for hiring innovative, sustainable and cost-effective comes to infrastructure choices, which is RQLQYHVWPHQW%XWLQYHVWRUVQHHGWKDW EHQHWVVXFKDVSROLFLHVWKDWLQFHQWLYLVH What are other cities doing?
RXWVLGHH[SHUWLVHRUWUDLQLQJSURMHFW solutions for their infrastructure needs, one of the many reasons why they are kind of information if they are going to clean-energy policies and risk-mitigation Along with tapping private-sector
leaders, so these leaders are left to they have to open themselves up to new making room for the private sector in assess accurately the viability of a strategies, in case those policies should H[SHUWVFLW\OHDGHUVVKRXOGORRNIRU
PDQDJHRQWKHLURZQ7KDWDGGVDORWRI ideas, says Mike Tinskey, Ford Motor WKHVHSURMHFWV ORQJWHUPFRQFHVVLRQ,I\RXGRQWKDYH FKDQJH guidance from their peers, says C40s Mr
ULVN Companys global director of Vehicle In the last several years, more and the analytical capability to evaluate the :DWWV1RFLW\LQWKHZRUOGKDVD
Regulations can also get in the way of (OHFWULFDWLRQDQG,QIUDVWUXFWXUH more city projects have embraced PPPs, economic impact of a project, it can be Be open to new ideas PRQRSRO\RQJRRGLGHDV
delivering services effectively30% of Success will come about only if SULYDWHQDQFLQJDQGRWKHUSULYDWHVHFWRU hard to secure investment for it, Mr Working with the private sector brings By talking to each other, they can take
policymakers overall said the regulatory governments, infrastructure developers PRGHOVIRUGHOLYHULQJLQIUDVWUXFWXUH 7RPSVRQVD\V1RRQHZDQWVWROHQG PRUHWKDQPRQH\WRSURMHFWV%\ORRNLQJ OHVVRQVOHDUQHGDQGQGLQVSLUDWLRQIRU
environment is a leading impediment to and industry work together on a global Private companies get involved in these ZLWKRXWDJRRGSURVSHFWRISD\EDFN
infrastructure projects, this was more VFDOH collaborations because they see these City leaders can abate this challenge
Greater use of public-private partnerships is one of the top factors for
than twice the percentage of respondents One popular model for infrastructure projects as stable investments that align by building a solid business case for improving urban infrastructure and services
from the private sector citing this as an collaboration are PPPs, through which with their core competencies, while the these projects that showcase the % respondents
DUHDRIPDMRUFRQFHUQ private companies help city leaders to public sector sees them as a solution to ORQJWHUPQDQFLDOVRFLDODQG 54 56 49 45 54 64
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infrastructure-project delivery has always innovative ideas, and to take advantage opportunity to lessen the risk and burden Many investors today are drawn to 60

been bureaucracy, says Guilherme of lean project-delivery practices that RIGHOLYHULQJWKHVHSURMHFWVRQWKHLURZQ clean-tech infrastructure projects, like 50

Penin, a federal secretary of Port Policies have been honed in the private sector +RZHYHUGHQLQJWHUPVWKDWZRUNIRU renewable-energy schemes and water- 40

EDVHGLQ%UDVLOLD6HFXULQJSHUPLWV where missing deadlines or budget goals all parties can be tricky, says the OECDs conservation efforts, says C40s Mr 30

clearing environmental and legal audits, WUDQVODWHGLUHFWO\WRORVWPDUJLQV7KHVH 0U7RPSVRQ7RPDNHWKHVHSURMHFWV :DWWV%XWWKH\ZRQWLQYHVWLQWKHPMXVW 20

and getting stakeholders to release funds FDQDOOWUDQVODWHWRPDMRUEHQHWVIRUFLW\ ZRUNFLW\RIFLDOVKDYHWRWKLQNLQWHUPV EHFDXVHWKH\DUHJUHHQ*RRGSURMHFWV 10


0
FDQDGG\HDUVWRWKHVHSURMHFWV LQIUDVWUXFWXUH of return on investment, depreciation QGLQYHVWRUVDQGJRRGFLW\PDQDJHUV
Global average Middle East North America Europe Latin America Asia-Pacific
Although, he says, the government is Survey respondents overall said the DQGQDQFLDODFFRXQWDELOLW\&LWLHVGRQW who have taken the time to build
Source: Economist Intelligence Unit survey, November 2014.
making efforts to ease the bottlenecks public sector should lead provision of follow the same accounting principles relationships with the private sector, will

16 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 17 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

*RRGSURMHFWVQG
investors, and good
Case Study 2
Rio drives a transportation revolution
No city in the world
has a monopoly on
infrastructure can be impacted by a
disaster, says Stefan Brem, head of Risk
Analysis and Research Co-ordination at
city managers, who
have taken the time to
When Rio de Janeiro won the opportunity to host the 2016 Olympics, it was the
catalyst for city mayor, Eduardo Paes, to implement his plan to make Rio the city
good ideas.
0DUN:DWWVH[HFXWLYHGLUHFWRU&
6ZLW]HUODQGV)HGHUDO2IFHRI&LYLO
3URWHFWLRQ)ORRGVSRZHURXWDJHVUHV
&LWLHV&OLPDWH/HDGHUVKLS/RQGRQ8. and other disasters can shut down a
build relationships RIWKHIXWXUH$ELJSDUWRIWKDWYLVLRQLVEXLOGLQJQHZLQIUDVWUXFWXUHWKDWLV
citys business district and leave a
environmentally friendly, socially integrated, and uses technology and innovative
with the private GHVLJQWRDGGUHVVWKHPRELOLW\QHHGVRIWKHFLW\VSHRSOH
impact on local resources while ensuring companys employees in perilous
their own consistent access to clean VLWXDWLRQV&ROODERUDWLRQEHWZHHQWKH
VHFWRUZLOOQGWKH ,WVQRHDV\WDVN5LROLNHPDQ\FLWLHVLQ%UD]LOIDFHVPDVVLYHXUEDQVSUDZO
ZDWHUDQGHQHUJ\8OWLPDWHO\ public and private sectors on disaster
partners they need.
0DUN:DWWVH[HFXWLYHGLUHFWRU&
DQGLQVXIFLHQWLQIUDVWUXFWXUHWRVXSSRUWLWVVXUJLQJSRSXODWLRQJURZWK+RZHYHU
by copying the successes of other leading cities, Mr Paes has been able to
infrastructure is the responsibility of
government, he says, but if these
planning ensures everyone has a plan in
SODFHVKRXOGDFDWDVWURSKHRFFXU,WLVVR
&LWLHV&OLPDWH/HDGHUVKLS/RQGRQ8. LPSOHPHQWSURMHFWVWKDWDUHKHOSLQJ5LRWUDQVIRUPLWVHOI2QHRIWKHPRVW
LQYHVWPHQWVEHQHWRXUEXVLQHVVWKHQLW important that the public and private
successful projects to emerge from this vision is the citys new Bus Rapid Transit
makes sense for us to do it when sector do joint assessments of risk, so
%57 V\VWHP7KHWUDQVSRUWDWLRQV\VWHPLVGHVLJQHGWRGHOLYHUWKHTXDOLW\VSHHG
their own transformative urban- SRVVLEOH that, when the time comes, they can
and improved environmental impact of light rail, but with the lower budget frame
LQIUDVWUXFWXUHVROXWLRQV9HU\IHZ Businesses also need to work with city UHVSRQGLQDWKRXJKWIXOPDQQHUz
RIOHVVDVVHWLQWHQVLYHEXVV\VWHPV7KLVLVDFFRPSOLVKHGWKURXJKWKHXVHRI
OHDGHUVLQDQ\HOGZDQWWREHWKHUVWWR leaders on risk management as critical
KLJKVSHHGEXVHVGHGLFDWHGODQHVDQGDERYHJURXQGSDVVHQJHUVWDWLRQV
do everything because it takes a lot of
Fast-growing cities like Rio dont have the infrastructure budgets that London
political capital to be a pioneer, Mr Watts
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VD\V+RZHYHUZKHQWKH\VKDUHWKHLU
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success stories with each other, it gives
leaders from the worlds megacities taking action to reduce greenhouse-gas
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Mr Watts points to the spread of Bus
leaders like Mr Paes to solve transportation crises with reasonable budgets and in
Rapid Transit (BRT) projects in recent
DVKRUWWLPHIUDPH
years, following the success of the
popular BRT system in Curitiba, Brazil;
Getting the public on board
and the widespread implementation of
To ensure he had support for the BRT project prior to breaking ground, Mr Paess
bike paths and bike-rental programmes
WHDPFRQGXFWHGSXEOLFKHDULQJVLQHDFKFRPPXQLW\WRSUHVHQWWKHSURMHFWH[SODLQ
modelled after Copenhagen, which is
WKHLPSDFWWRWKHQHLJKERXUKRRGDQGWKHEHQHWVRQFHLWZDVFRPSOHWH.LRVNV
now considered the best biking city in
were also installed at strategic points in the area to take residents queries and
WKHZRUOG$ORWRIRXUVXFFHVVFRPHV
VKDUHLQIRUPDWLRQ
from listening to inspirational narratives
,Q-XQH5LRODXQFKHGLWVUVW%57FRUULGRUFDOOHGWKH7UDQVRHVWHRQWKH
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about what they accomplished, what
KDVFXWWUDYHOWLPHVIRUWKRVHSDVVHQJHUVLQKDOI7ZR\HDUVODWHUWKHVHFRQG
challenges they faced, and how they
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more these leaders share their
estimates that, by the time the two additional corridors are open in 2016, the
successesand failuresthe more
VKDUHRIWULSVPDGHE\PDVVWUDQVLWLQ5LRLVH[SHFWHGWRLQFUHDVHIURPWR
quickly good solutions can be
63%, which would be among the largest proportion of mass transit users of any
LPSOHPHQWHGDURXQGWKHZRUOG
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Compact cities with strong public-transit systems reduce reliance on
The role of business
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That means not only positive impacts on quality of life, but also economic
participating in infrastructure
RSSRUWXQLWLHVDQGKLJKHUSURGXFWLYLW\IRUXUEDQFLWL]HQV
development as a way to let the
7KHVXFFHVVRI5LRV%57V\VWHPLVDQH[WUDRUGLQDU\DFFRPSOLVKPHQW0U
community know they are invested in the
:DWWVDGGV0D\RU3DHVKDVXVHGWKHSXVKRIWKH2O\PSLFVWRGHOLYHUD
long term success of the city, and to
WUDQVSRUWDWLRQUHYROXWLRQz
ensure a sustainable business
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JOREDOZDWHUVWHZDUGVKLSLQWKH2IFHRI infrastructure investment and to ensure water preservation programmes, digging
Sustainability at The Coca-Cola our use of water wont negatively impact wells, cleaning local waterways, and
&RPSDQ\7KLVLVHVSHFLDOO\WUXHLQ the local people or environment, Mr installing rainwater harvest technology in
emerging market cities that may not .RFKVD\V FRPPXQLWLHVWKDWDUHZDWHUVFDUFH7KH
have the resources to build out their own :KHQH[LVWLQJV\VWHPVFRPHXSVKRUW company also has built several co-
LQIUDVWUXFWXUHV\VWHPV3DUWRIRXUGXH the company will make community generation heat and power plants and
diligence is to work closely with the local investments in the infrasture necessary wastewater treatment systems in their
government, to advocate for to support its business, by supporting own facilities, to lessen the operations

18 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 19 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

3
Section Citizens are willing to act if they know how
% respondents
new infrastructurea key concern for
FLWLHVDURXQGWKHJOREH$WWKHVDPH

Better information is key to more Citizens are able to report deficiencies to local authorities on anything from traffic
light deficiences to gas leaks
time, these technologies improve quality
of life for citizens, and help leaders

effective action
Willing to report deficiences to local authority attract innovative global companies,
Likely to change energy/water consumption if given better usage information ZKLFKDUHNH\JRDOVIRUWRGD\VOHDGHUV
100
65 71 72 64 70 70 78 86 91 65 65 62 47 63 76 70 70 63 Many cities are already seeing success
90 with smart-city solutions, offering
80
valuable roadmaps for other city leaders
70
60 on how smart technology could help
50 them address their own environmental,
40
30 VRFLDODQGIXQGLQJFKDOOHQJHV,Q1HZ
20 <RUN&LW\WKH&LW\SURJUDPPHJLYHV
10
0 citizens access to Wi-Fi-enabled public
Global average Middle East North America Europe Latin America Asia-Pacific smart screens located in old phone
Source: Economist Intelligence Unit survey, November 2014. booths, which integrate information from
One way to rein in spending while 'HGULQJVD\V as well as transport (76%) behaviourif government programmes, businesses,
focusing on sustainable solutions, is to Indeed, the Tube productivity project they were given better access to To become more sustainable, my city should employ a platform to receive and citizens to provide information about
invest in more cost-effective was the result of pressure brought by LQIRUPDWLRQDERXWXVDJHOHYHOVDQGWUDIF citizen feedback on services QHDUE\HYHQWVDQGORFDOYHQGRUV,QWKH
maintenance projects, rather than stories in the press and on social media GLVUXSWLRQVUHVSHFWLYHO\ % respondents FDVHRI*ODVJRZ8.FLW\OHDGHUV
EXLOGLQJFRPSOH[FRVWO\QHZV\VWHPV$V complaining about Tube performance, Making these improvements requires 26 26 41 23 21 21 recently rolled out a city dashboard that
highlighted, two-thirds of respondents including pictures of people being forced a systematic approach to managing data, 50 gives citizens real-time information on
agree that their cities need to improve to walk out of Tube tunnels after their connecting information feedback with 40 WUDIFRZZHDWKHUDOHUWVDFFLGHQWV
PDLQWHQDQFHDQGRSHUDWLRQVRIH[LVWLQJ WUDLQVEURNHGRZQ,WJRWDORWRIPHGLD decision making and infrastructure and waiting times for rail and bus
30
systems more than they require new attention, which triggered political SURYLVLRQ7KHUROHWKDW,7FDQSOD\WR VHUYLFHV$QGWKHQWKHUHLV7HO$YLY
SK\VLFDOLQIUDVWUXFWXUH7KHVHSURMHFWV SUHVVXUHIRUFKDQJH0V'HGULQJVD\V LPSURYHVHUYLFHGHOLYHU\LVH[SDQGLQJ 20 which has been lauded for many smart-
are easier to fund, generally involve less 8QIRUWXQDWHO\KRZHYHURQO\LQ1RUWK 10 city initiatives, including the roll out of
red tape and can start to deliver Better data and smarter cities America do most respondents see a city-wide Wi-Fi access, location-based
0
PHDVXUDEOHYDOXHDOPRVWLPPHGLDWHO\ One way to win support for these better use of IT as a key route to smartphone technology to help visitors,
Global average Middle East North America Europe Latin America Asia-Pacific
Londons Ms Dedring points to her projects and to build stronger improving infrastructure and urban and the Digi-Tel project, which allows
Source: Economist Intelligence Unit survey, November 2014.
citys on-going efforts to improve relationships between government, services; it was their top choice, cited by citizens to access services and
capacity on the Tube, its underground infrastructure providers and citizens is to 60%, compared to just 22% of those in See chart in appendix: Which of the following initiatives, if any, do you think your city LQIRUPDWLRQYLDHPDLOWH[WPHVVDJHRUD
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LPSURYLQJWKHUHOLDELOLW\RIWKHH[LVWLQJ citizens more aware of the impact their American were much more likely to say that policymakers and citizens in many KRPHVDQGDQRQJRLQJVWXG\E\3DFLF The citizen stakeholder
WUDIFE\VKRUWHQLQJUHVSRQVHWLPHWR behaviour has on infrastructure needs; that their city should employ a platform regions may not be taking full advantage Gas and Electric, a California-based 7KHVHDUHMXVWDIHZH[DPSOHVRIKRZ
incidents, implementing proactive this has the potential to deliver a to receive citizen feedback on services as RI,7DVDGULYHURIJUHDWHUHIFLHQF\RU utility shows consumers who receive more connected technologies can
maintenance to prevent failures, and meaningful change in how services are a route to becoming more sustainable overlooking the connections between monthly home-energy-use reports address urban challenges and foster
improving the process for upgrading cars GHPDQGHGDQGLQIUDVWUXFWXUHXVHG$ DQGPRUHOLNHO\WRH[SUHVVDZLOOLQJQHVV data sharing, citizen feedback and started using less energy immediately, at stronger relationships with citizens and
DQGRWKHUDVVHWV$VDUHVXOWRIWKHVH vast majority of respondents indicated to change their infrastructure usage VXVWDLQDELOLW\LVVXHV&LW\OHDGHUVQHHGWR all hours of day, suggesting that they EXVLQHVVRZQHUV%XWWKHVHNLQGVRI
changes, delays have fallen by 40% in that they would be willing to change their DFFRUGLQJO\ do a better job of managing their changed the settings on their heating SURMHFWVVKRXOGQRWEHXQGHUWDNHQOLJKWO\
WKHODVWYH\HDUVVKHVD\V7KDW energy and water consumption (72%), This regional discrepancy suggests LQIUDVWUXFWXUHVDVDVHWRIFRPSOH[ systems, air conditioners, or other Smart-city solutions require integration
increased reliability means they can run systems and working with their citizens equipment that runs continuously, and and management of huge amounts of
more trains closer together to Better use of IT to increase overall efficiency is a top factor for improving both to receive their feedback and to that the change in behaviour continued GDWDLQRUGHUWROHYHUDJHUHDOYDOXH7KDW
DFFRPPRGDWHPRUHSDVVHQJHUV,WLVDQ urban infrastructure and services SURYLGHWLPHO\LQIRUPDWLRQ7KLV RYHUWKHPRQWKVWKH\ZHUHWUDFNHG means cities need to develop their own
unsung project that has had a huge % respondents highlights the need for strong This should be strong encouragement DQDO\WLFVH[SHUWLVHRUSDUWQHUZLWKWKH
LPSDFW 38 36 60 34 22 38 relationships and communications for city leaders looking to invest in SULYDWHVHFWRUWRWDSLQWRWKHVHVNLOOVHWV
These kinds of cost-effective 70 EHWZHHQFLW\RIFLDOVDQGFRPPXQLWLHV smart-city technologies, including They also need to win citizen support
operations and maintenance projects 60 Harnessing behavioural change and smart-grid infrastructure, mobile-transit- ERWKIRUWKHQDQFLDOLQYHVWPHQWDQG
GHPRQVWUDWHWKHVLJQLFDQWYDOXHWKDW 50 citizen involvement can improve tracking applications, sensor their willingness to share information in
can come from small changes; however, 40 outcomes, while reducing costs and technologies, data analytics and other RUGHUWRPDNHWKHVHWRROVHIIHFWLYH
getting government support for such 30 building buy-in from the citys tools to integrate data from multiple Based on our survey data, convincing
LQLWLDWLYHVFDQEHVXUSULVLQJO\GLIFXOW 20 VWDNHKROGHUV sources in order to inform and connect citizens to support information-sharing
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There is a tendency (among government IBMs Smarter Planet Program, for FLWL]HQVLQUHDOWLPH7KHVHWRROVFDQ VROXWLRQVWKDWEULQJUHDOZRUOGEHQHWV
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Global average Middle East North America Europe Latin America Asia-Pacific
EHFDXVHLWLVH[FLWLQJDQGLQYROYHV DYHUDJHRIOHVVZDWHUDIWHUVPDUW congestion and their carbon footprint, of respondents say they would change
Source: Economist Intelligence Unit survey, November 2014.
interviews and ribbon cutting, Ms water meters were installed in their while delaying the need to build costly the way they use infrastructure, given

20 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 21 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

INSIGHTS FROM
better information about usage rates,
and a similar number say they would be Try to understand
what your city really
recycling and better waste-management
solutions, if they want to reduce their
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DXWKRULWLHV7KLVVXJJHVWVDVWURQJ needs, and not just
willingness to participate, although, to Setting goals sets the stage
an ambitious pilot project called At FCC Aqualia we operate in 22
fully engage these stakeholders in an
what your department Some city leaders are gaining broad
Infrastructure such as full-cycle water
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SmartWater with the local
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support for sustainable initiatives by
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critical role in the city, which cannot be app end users in the water PLOOLRQSHRSOH7KLVPHDQVZHDUH WKH3RUWRI$PVWHUGDP
citizens to share private information, or H[DPSOHVHWDSXEOLFJRDOWRJHQHUDWH
XQGHUHVWLPDWHG7KHUHLVDELJ supply are able to track in a critical position to ensure
take the time to report a pothole, theyve 7% of the citys electricity from
information gap that needs to be closed their own consumption, WKHPRVWHIFLHQWXVHRI
got to clarify how the data will be used KHOSWKHLUFLW\EHFRPHPRUHVXVWDLQDEOH renewable sources by 2020; Vancouver
between citizens, city authorities and receive alerts and one of the worlds most
DQGZKHUHWKHEHQHWVZLOOEH7KLVLV In comparison, just 26% said their city recently released a 10-step action plan to
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we can introduce platforms for the service and report can help achieve this by
information about how the system will consumption, and only 25% wanted to 2020, and London set a mandate in
feedback, citizens will start to feel more LQFLGHQWV7KHUHVHDUFK turning water cycle
work, how data will be stored, and the see more investments in reducing waste WRFXWFDUERQGLR[LGH &2 
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the demands on the city, and service overwhelmingly that service that goes on
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providers like FCC Aqualia will be better citizens want to have around us without being
And, when integrating IT further into to invest in renewables and other projects and provide a tangible goal
SODFHGWRGHOLYHULQWHOOLJHQWDQGHIFLHQW the opportunity to do noticed, to one that
critical infrastructures, city leaders must clean-energy projects and, frankly, these DJDLQVWZKLFKWRPHDVXUHWKHLULPSDFW
VROXWLRQV just this, and that by )HOL[3DUUD every citizen plays an
also remember to factor security into LQLWLDWLYHVFDQEHYDOXDEOH+RZHYHUQRQ Sometimes these projects can be an
,WLVZLWKH[DFWO\WKLVLQPLQGWKDWWKH working together we Chief Executive of FCC Aqualia DFWLYHUROHLQz
WKHLUSURMHFWSODQV$V0U%UHPDVVHUWV energy-related sustainability initiatives uphill struggle, says the DECCs Mr
if cities are going to realise their full are vital for cities to deliver on their :DJVWDII+HKDVEHHQWU\LQJWRKHOS
potential value, Grids cant just be VXVWDLQDELOLW\JRDOV7KLVPHDQVWKDW FLWLHVDFURVVWKH8.WREXLOGORZFDUERQ
VPDUWWKH\DOVRKDYHWREHVHFXUH cities need to engage and educate their heat networks that can eventually
citizens about the broader environmental replace the in-home boilers currently
Building the future EHQHWVRILQYHVWPHQWVLQUHF\FOLQJ XVHGE\RIKRPHRZQHUV7KHLGHD
As city leaders plan for the future, water management, public transportation that these cities need to build a whole
increasing sustainability while lessening DQGRWKHULQIUDVWUXFWXUHLQLWLDWLYHV new underground infrastructure is a big
environmental impact has become a Although the environmental value of FKDOOHQJHKHVD\V+HFLWHVWKH
priority in virtually all urban- these endeavours is profound, it is less countrys national mandate to reduce
LQIUDVWUXFWXUHSURMHFWV readily understood by the public and greenhouse-gas emissions by at least
Survey respondents also show an WKHLUVXSSRUWLVHVVHQWLDO 80% by 2050 as an impetus for city
FCC Aqualias SmartWater app for interest in sustainable-infrastructure :DVWHPDQDJHPHQWIRUH[DPSOHLVD OHDGHUVWRPDNHWKDWFKDQJH:HFDQW
the government of Santander projects, especially if they involve particularly important topic, states Mr meet that goal if we have 20m gas and
HQHUJ\LPSRVLQJHQHUJ\HIFLHQF\ +RRUQZHJ:HQHHGWRJXUHRXWKRZWR RLOERLOHUVUXQQLQJHYHU\GD\KHVD\V
standards for businesses and investing in run cities with less garbage and less Indeed, many cities are already far
renewable energy were among the top HQHUJ\KHVD\V,WLVLPSHUDWLYHWKDW down the path of implementing major
three choices of initiatives that would city leaders win public support for green-infrastructure projects to support

Which of the following initiatives, if any, do you think your city should engage in to become more sustainable?
Select up to three
% respondents

28.6 53.3 46.2 41.3 28.4 26.2 24.7 17.4 1.5


60

50

40

30

20

10

0
Measuring the Imposing Promoting local Investing in Reducing water Employing a Reducing Raising My city already
citys environ- energy community renewable consumption platform to waste/improv- awareness of does most of
mental impact efficiency initiatives energy receive citizen ing recycling sustainability these things
standards for feedback on issues among
businesses services citizens

Source: Economist Intelligence Unit survey, November 2014.

22 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 23 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

Case Study 3 JRYHUQPHQWEXLOGLQJVWKDWPHHWH[WHQVLYHVXVWDLQDELOLW\


INSIGHTS FROM
Money and ambition fuels growth in Abu Dhabi ratings, and a light-rail system that will lessen the impact of
DXWRWUDIF
Building the Future Demonstrating just what can be
Abu Dhabi is currently pouring massive resources into a vast However, a blank slate, and an effort to think years into
achieved through Public Private
array of infrastructure projects, including roads, rail, energy, WKHIXWXUHFDQOHDGWRGLIFXOWGHFLVLRQPDNLQJ
7KHQGLQJVRIWKLVUHSRUWKLJKOLJKW Partnerships, FCC is proud to have been
ZDWHUDLUSRUWVXUEDQKRXVLQJVFKRROVDQGPRUH7KH The risk is overprovisioning of infrastructure, Mr
some of the biggest challenges we face working for the city for over 100 years
reason: the region wants to elevate itself to the status of 6DPDUUDLVD\V:KHQEXLOGLQJIRUWKHIXWXUH\RXIDFHWKH
in urban waste management, LQDURZ2XUHIFLHQWPDQDJHPHQWRI
economic leader in the eyes of the international community possibility of investing in infrastructure that will not be fully
particularly in terms of galvanising wider the sewer systems, and innovative
DQGLWKDVWKHPDVVLYHQDQFLDOUHVRXUFHVWRPDNHLWKDSSHQ XWLOLVHGIRUVRPHWLPH/RQJWHUPSODQQLQJDOZD\VFDUULHV
VXSSRUWIRUWKHVHVHUYLFHV$FFRUGLQJWR approach to waste collection using our
Abu Dhabi wants to become a global capital of the risk of not accurately forecasting, as in the case of the
WKH:RUOG%DQNE\ELOOLRQ FCC-designed hybrid-electric truck,
sustainable economic growth that is not dependent on fossil real estate market global downturn, which impacted Abu
XUEDQUHVLGHQWVDUHH[SHFWHGWREH continue to play a key part in the smart
IXHOIRULWVSULPDU\*'3VD\V.DLV6DPDUUDLKHDGRI8UEDQ 'KDELDPRQJPDQ\RWKHUFLWLHVKHVWDWHV7KDWOHGWRVRPH
JHQHUDWLQJELOOLRQWRQQHVRIXUEDQ delivery of services for Barcelonas
'HYHORSPHQW3ODQQLQJ$EX'KDEL7KRXJKWIXOLQIUDVWUXFWXUH LQIUDVWUXFWXUHEHLQJEXLOWDKHDGRIWKHPDUNHWGHPDQG
waste every year, so it is critical to FLWL]HQV
GHYHORSPHQWSOD\VDFULWLFDOUROHLQPDNLQJWKDWKDSSHQ +RZHYHU0U6DPDUUDLVHHVWKLVDVDVPDOOVHWEDFN+HLV
manage waste more effectively and This collaborative, technology driven
7KHFLW\EHQHWVIURPKDYLQJPRQH\WRLQYHVWLQWKHVH very optimistic about how the regions current investment in
PRUHHIFLHQWO\WKDQHYHUEHIRUH approach to waste management also Agustn Garca Gila
projects and not a lot of obsolescent or obsolete LQIUDVWUXFWXUHZLOOVXSSRUWLWVORQJWHUPHFRQRPLFSODQV2XU
By demonstrating the value of the W\SLHVRXUZRUNLQWKH8.)&& Chairman FCC Medio Ambiente
LQIUDVWUXFWXUHWRUHSODFHRUXSJUDGH,WLVDQDGYDQWDJHWKDW goal is to put the region on the global map, similar to the
service, driving technological innovation Environment now operates three Energy
ZHDUHDUHODWLYHO\QHZFLW\0U6DPDUUDLVD\V7KLVIUHHVWKH $VLDQ7LJHUVRIWKHVDQGVKHDVVHUWV$EX'KDEL
and improving transparency through from Waste (EfW) facilities, in the value of hidden services such as
region to implement cutting-edge sustainable systems, has the capital, the vision and a government committed to
data sharing and citizen engagement we 1RWWLQJKDP.HQWDQG/LQFROQVKLUHZLWK ZDVWHDUHYHU\SHUWLQHQW$VRQHRI
including wastewater-recycling systems, cutting-edge waste PDNLQJLWKDSSHQz
can help the circular waste economy to two more under construction and a many similar initiatives, last year in
management and recycling, a state-of-the-art airport,
RXULVK)&&0HGLR$PELHQWHRSHUDWHV VL[WKRQHDOVRLQWKHSLSHOLQHLQ Serbia we introduced an environmental
in 5,000 municipalities in 20 countries (GLQEXUJK7RJHWKHUWKHVHSODQWVZLOO education program to bring our activity
across the world, and we do so with this enable us to treat more than one a half FORVHUWRFKLOGUHQDQG\RXQJSHRSOH,I
DSSURDFKLQPLQG million tonnes of waste per year and we want the support of citizens it is vital WKHLUVXVWDLQDEOHIXWXUHYLVLRQV,Q ODQGOOZLWKD6ROLG:DVWH7UHDWPHQW
Barcelona has long been recognised WXUQLWLQWRYDOXDEOHJUHHQHQHUJ\ that we continue to do this across all 9DQFRXYHUIRUH[DPSOHK\GURHOHFWULF Centre that cleans wastewater for reuse
as one of the pioneers of smart city )LQDOO\WKHQGLQJVRIWKHUHSRUW age groups, and every urban power accounts for 90% of the citys and harnesses biogas for energy
LQLWLDWLYHVQRWRQO\LQ6SDLQEXWJOREDOO\ relating to education and demonstrating HQYLURQPHQWZHRSHUDWHLQz energy supply, owing to aggressive SURGXFWLRQ
investment in this sustainable energy These kinds of sustainable urban-
source; Vienna is currently building a infrastructure projects help cities reduce
new waste-to-energy mud reclaiming their environmental impact and meet
project (Energie-Optimierung sustainability goals, while helping raise
Schlammbehandlung), which, by 2020, their status as green cities in the eyes of
will generate 100% of the energy used to businesses and travellers looking for
treat waste from renewable sewage gas; WKHLUQH[WGHVWLQDWLRQz
and Rio recently replaced its Gramacho

FCCs Hybrid electric vehicle for urban solid waste collection, Barcelona

24 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 25 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

Conclusion Involve your citizens in long-term


planning and be clear about how
infrastructure investments will affect
them in the future City leaders need
infrastructure projects and urban
services that will help the city do more
with less, create less waste, and make
the environment more resilient,
DFFRUGLQJWR0U+RRUQZHJ:KLOHWKH\
cant know what technologies and
infrastructure innovations will be
available in the future, they can make
GHVLJQGHFLVLRQVWKDWDUHH[LEOHHQRXJK
WRDFFRPPRGDWHFKDQJH)RUH[DPSOH
choosing open-source standards to
enable future adaptions, or establishing
There are few easy answers when it VWUDWHJLFJRDOVRIWKHFLW\7KLVFDQKHOS you still need to be honest about what policies that require new structures meet
FRPHVWRLQIUDVWUXFWXUHLQYHVWPHQW city leaders gain a better perspective on you are doing, and why you are doing it, HQHUJ\ZDWHUDQGZDVWHZDWHUHIFLHQF\
These projects are huge, risky and most which projects will deliver the most value VD\V6WXWWJDUWV0U0XHQWHU+HSRLQWVWR JRDOV&LW\OHDGHUVDUHWKHRQHVZKRZLOO
cities face far greater demand for to the city, and help foster compromises his citys rolling maintenance of more determine how well we will change
projects than there are resources to WKDWEHQHWWKHHQWLUHSRSXODWLRQ than 300 fountains, several of which have FRXUVHKHVWDWHV7KH\ZLOOGULYHWKH
VXSSRUWWKHP%XWZKHQFLW\OHDGHUV EHHQVKXWGRZQGXHWRODFNRIIXQGLQJ debate and they will make the decisions
take the time to learn from each others Reinforce citizens ownership of 3HRSOHZHUHXSVHWDWUVWKHVD\VEXW WKDWVKDSHWKHLUIXWXUH7RGRVR
successes and failures, infrastructure their infrastructure and service once the team from the city effectively, they need to give their
FKDOOHQJHVFDQEHRYHUFRPH*HWWLQJ provision Doing this requires that administration conducted community- citizens a voice on an on-going basis,
there means learning to take advantage relationships be built, while addressing outreach efforts to educate people about involving them and informing them about
RIWKHQDQFLDOUHVRXUFHVDQGLQQRYDWLRQ FLWL]HQVQHHGV$VHOHFWHGRIFLDOVZH the cost of the projects, and how those the investments that will affect them for
brought by the private sector, as well as have an obligation to always put the funds could be better spent, they GHFDGHVWRFRPHz
integrating citizen feedback into LQWHUHVWVRIRXUFLW\UVWWRZRUNZLWK XQGHUVWRRG7KHUHZLOODOZD\VEH
operations through on-going engagement communities, and ensure that we FRPSURPLVHVKHVD\V%XWZKHQ\RXDUH
DQGVWDNHKROGHUPDQDJHPHQW ultimately support the best project open with the public about those choices,
Twenty years from now, city leaders SRVVLEOHVD\V6DQ)UDQFLVFRV0U/HH \RXDUHPRUHOLNHO\WRZLQWKHLUVXSSRUW
will be judged by their historical He encourages other city leaders to
achievements in transforming their create platforms through which they can Look beyond your own team for
FLWLHV0U:DWWVDGGV7KHOHDGHUVZKR engage citizens in conversations about solutions The best way to create
make choices based on the long-term infrastructure needs, resource allocation, successful cities is through collaboration,
environmental, social and economic DQGZKDWLVEHLQJGRQHZLWKWKHLUWD[HV VD\V&V0U:DWWV*URXSVOLNHWKH&
needs of their people will be the ones )RUH[DPSOH6DQ)UDQFLVFRV bring city leaders together with each
PRVWFHOHEUDWHGIRUWKHLUVXFFHVVHV7KH 6)%HWWHU6WUHHWVFRPVLWHVKDUHV other and with private-sector companies,
H[SHUWVLQWHUYLHZHGIRUWKLVUHSRUWRIIHU information about street-improvement to share ideas and to learn from each
their advice on how to tackle the projects and lets citizens make requests RWKHUVVXFFHVVHVDQGIDLOXUHV6XFK
on-going demand for urban infrastructure IRUUHSDLUVLQWKHLUQHLJKERXUKRRGV collaborations have led to the mass
and services faced by city leaders around These opportunities for feedback, engage adoption of BRT systems and other
the world: the community, highlight areas for urban-infrastructure innovations that
improvement and reinforce ownership of might not have gained attention had
City departments must work as infrastructure and services by the citys these leaders not shared their stories
partners to reach their strategic UHVLGHQWVWKHPVHOYHV and discussed frankly the challenges they
goals%HIRUHFLW\RIFLDOVJKWIRUD IDFHGLQLPSOHPHQWLQJWKHP
project, it is vital to be sure what is really Build trust through transparency Furthermore, private-sector companies
EHVWIRU\RXUFLW\7U\WRXQGHUVWDQG and a commitment to openness To offer their own insights, as they can
what your city really needs, and not just strengthen government relationships with VKDUHH[SHUWLVHJDLQHGIURPVXFFHVVIXO
what your department wants, says Ms citizens and service providers, trust is urban projects developed around the
9DQGHQ%HXNHQ6KHHQFRXUDJHVFLW\ HVVHQWLDO%XLOGLQJWKDWWUXVWUHTXLUHV ZRUOG333VVSHFLFDOO\DUHDERXWPRUH
RIFLDOVWRZRUNWRJHWKHUDVSDUWQHUV FODULW\DQGDFRPPLWPHQWWRRSHQQHVV than contributing funding; they can be
rather than as adversaries, and to City leaders need to make tough DQRSSRUWXQLW\WRLPSURYHHIFLHQF\LQ
consider how individual project decisions about infrastructure and not all LQIUDVWUXFWXUHDQGVHUYLFHGHOLYHU\
investments align with the broader of them will sit well with the public, but

26 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 27 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

Insights Appendix: Survey results

The infrastructure and services in the city where I principally live or work are...
% respondents

32.3 43.0 15.2 8.6 0.7 0.2


50

40

30

20
In an increasing number of the worlds Citizen services
urban areas we can now interact with 10
Demographics
anything from railways to sewer systems,
0
DQGIURPZDVWHELQVWRHQHUJ\JULGV7KLV
Adequate and will Adequate but needs Adequate but on Inadequate and Seriously deficient Non-existent for
is great news for the future of our cities, remain so for the investment in the current trends will needs investment for most purposes most purposes
particularly with a rapidly rising urban City next 5 years next 5 years be inadequate in now
authorities the next 5 years
population, but making only the
ity

component parts more intelligent will not


bil

Po
LQLWVHOIJLYHULVHWRVPDUWHUFLWLHV7KH
ina

litic
sta

key to this is fostering better In your opinion, which areas of your countrys urban infrastructure and services require most attention in the

s
Su

relationships between the city immediate future?


Funding
VWDNHKROGHUV This refers to new infrastructure and services as well as upgrades and improved maintenance for existing infrastructure.
Information % respondents
At FCC we recognise that although
cities have got smarter, these Management 33.7 52.1 20.1 33.7 25.9 16.6 19.1 13.0 9.3 14.9 1.0 6.6
60
stakeholder relationships have become
HYHUPRUHFRPSOH[%ULGJLQJWKLVJDSLV Service 50
Citizens
providers
YLWDOIRUVXFFHVV%DVHGRQRYHU 40

\HDUVH[SHULHQFHFRYHULQJHQYLURQPHQWDO 30
services, infrastructure and water, we 20
have established a model for delivering So s
ion
10
cie it
the most effective solutions for urban ta
lt o nd 0
DUHDV,PSURYLQJHQJDJHPHQWDQG re icc
nd om Transport Transport Transport Information Energy Energy Water Water Waste Waste Other No areas
involvement will lead to more innovative s on roads metros and airports & communi- generation distribution supply & wastewater collection treatment & require
Ec railways cations distribution treatment recycling attention
ways of funding infrastructure and technology
VHUYLFHVVWURQJHULQIRUPDWLRQRZVDQG
EHWWHUSURMHFWPDQDJHPHQWThe FCC
Citizen Services ModelLVH[SODLQHG
In your opinion, which areas of your countrys urban infrastructure and services require most attention in 5 years?
below: WKHFLW\LQTXHVWLRQ Thirdly, the relationship between city
This refers to new infrastructure and services as well as upgrades and improved maintenance for existing infrastructure.
Firstly, it is important to recognise Secondly, there are broadly three authorities, citizens and service providers % respondents
WKDWQRWZRXUEDQDUHDVDUHWKHVDPH main groups of stakeholders within a city LVGHQHGE\SURMHFWIXQGLQJGDWDDQG
30.9 47.1 19.1 35.8 25.3 17.4 18.9 17.2 7.6 17.9 1.0 7.1
Demographics, politics, economic when urban infrastructure and services WKHRZRILQIRUPDWLRQDQGVXFFHVVIXO 60
conditions, societal trends, and the projects are being discussed - local management of this engagement and 50
environment and sustainability, all differ authorities, service providers and the LQWHUDFWLRQ,QRXUH[SHULHQFHWKH
40
widely in urban areas from region to FLWL]HQVWKHPVHOYHV7KHFLW\DXWKRULWLHV stronger this relationship can become
30
region, country to country and continent DUHFHQWUDOWRWKLV7KH\KDYHWKH through collaboration, openness and long
20
WRFRQWLQHQW7KHUHDUHFULWLFDOOHVVRQV strategic vision, and the onus is on them term planning, the smarter the solutions
that cities can learn from one another, to deliver on this by working with the two IRUWKHFLW\ZLOOEHFRPH 10

but each urban infrastructure and remaining groups to ensure the best )&&LVD&LWL]HQ6HUYLFHVFRPSDQ\:H 0

services solution needs to be tailored to VROXWLRQVIRUWKHLUFLWLHV DUHLQWKLVWRJHWKHUz Transport Transport Transport Information Energy Energy Water Water Waste Waste Other No areas
roads metros and airports & generation distribution supply & wastewater collection treatment require
railways communi- distribution treatment & recycling attention
cations
technology

28 29 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015 Urban infrastructure insights 2015

In the city in which you are based, which, if any, of the following are major impediments to upgrading urban Which of the following initiatives, if any, do you think your city should engage in to become more sustainable?
infrastructure and services? Select up to three
Select up to three. % respondents
% respondents
28.6 53.3 46.2 41.3 28.4 26.2 24.7 17.4 0.5 0.0 1.5
16.1 34.0 39.6 34.7 38.4 21.8 23.0 17.1 16.4 1.0 5.1 60
40
50
35
30 40
25 30
20
20
15
10 10
5 0
0 Measuring Imposing Promoting Investing in Reducing Employing a Reducing Raising Other Dont know / My city
Lack of Poor Lack of Lack of public Lack of skills, Lack of an Corruption or Lack of an Focus on new Other There are no the citys energy local renewable water platform to waste/im- awareness of not already does
adequate governmental political will funds knowledge or effective misuse of appropriate investments major environmen- efficiency community energy consumption receive proving sustainability applicable most of
suppliers effectiveness or sense of training of procurement funds regulatory over impediments tal impact standards for initiatives citizen recycling issues these things
urgency officials in process earmarked framework necessary businesses feedback on among
this area for maintenance services citizens
infrastructure
and services

Which single sector of society do you think would be most effective in upgrading infrastructure and services
in your city?
In the city in which you are based, which, if any, of the following factors would produce the greatest
% respondents
infrastructure and services improvements?
Select up to three.
43.5 16.6 0.7 3.4 35.5 0.7
% respondents
50
35.7 53.8 44.5 35.5 37.7 21.8 12.0 15.2 0.2 1.0
40
60

50 30

40 20
30
10
20
0
10
The public The private The charity Citizens All the above Dont know
0 sector sector sector themselves would be equally
More funds for Greater use of Greater Better training Better use of Greater Greater Establishing Other No improve- effective
infrastructure public-private transparency in of public sector IT to increase centralisation enterprise from centres of ment is needed
and services partnerships public spending officials overall of infrastruc- private sector excellence
for infrastruc- on infrastruc- efficiency ture and
ture and ture and services
services services procurement
Which of the following cities do you consider most innovative in terms of urban infrastructure and services?
% respondents

Please indicate whether you agree or disagree with the following statements. London 132 San Francisco 25 Barcelona 11 Bogota 4 Bern 2
Please rate on a scale of 1 to 5 where 1=strongly agree and 5=strongly disagree.
% respondents New York City 95 Chicago 23 Madrid 9 Brisbane 4 Canberra 2
1 Strongly 2 3 4 5 Strongly
agree disagree Singapore 89 Geneva 21 Milan 9 Jakarta 4 New Delhi 2

In my city citizens can send updates or reports to local authorities Tokyo 50 Stockholm 19 Munich 8 Luxembourg 4 Seattle 2
RQDQ\WKLQJIURPGHFLHQWWUDIFOLJKWVWRJDVOHDNVHWF 39 26 18 9 8
Amsterdam 37 Auckland 18 Brussels 7 Montreal 4 Calgary 1
,DPFXUUHQWO\UHSRUWLQJRUZRXOGEHZLOOLQJ
WRUHSRUWGHFLHQFLHVWRORFDODXWKRULWLHV 21 50 17 8 5 Paris 32 Kuala Lumpur 17 Hamburg 7 Dublin 3 Honolulu 1
7KHJRYHUQPHQWVKRXOGZRUNWRDJUHDWHUH[WHQWZLWKWKH Berlin 29 Boston 14 Vancouver 7 Dsseldorf 3 Kobe 1
SULYDWHVHFWRUWRLPSURYHXUEDQLQIUDVWUXFWXUHDQGVHUYLFHV 34 48 12 51
Toronto 28 Copenhagen 13 Washington DC 7 Helsinki 3 Mumbai 1
3HUVRQDOO\,DPOLNHO\WRFKDQJHP\HQHUJ\ZDWHUFRQVXPSWLRQ
LIJLYHQEHWWHUDFFHVVWRLQIRUPDWLRQDERXWXVDJHOHYHOV 40 32 18 5 5
Melbourne 27 Zurich 13 Oslo 5 Manila 3 Rio de Janeiro 1
3HUVRQDOO\,DPOLNHO\WRFKDQJHP\WUDQVSRUWXVDJHLI
JLYHQEHWWHUDFFHVVWRLQIRUPDWLRQDERXWWUDIFGLVUXSWLRQV 41 35 13 7 4 Sydney 26 Frankfurt 12 Sao Paulo 5 Perth 3

7KHDYDLODELOLW\DQGTXDOLW\RIXUEDQLQIUDVWUXFWXUHDQGVHUYLFHV
DIIHFWVZKHUHFRPSDQLHVORFDWHDQGH[SDQGWKHLUEXVLQHVVRSHUDWLRQV 35 41 18 4 2
My city needs to improve its maintenance and operations
PRUHWKDQLWUHTXLUHVQHZSK\VLFDOLQIUDVWUXFWXUH 26 40 23 7 3
Social integration is an important factor in
my citys infrastructure and service delivery 28 49 17 51

30 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 31 Written by the Economist Intelligence Unit and sponsored by FCC, 2015
Urban infrastructure insights 2015 Urban infrastructure insights 2015

What do you think should be the priorities for your city's mayor/leadership in order to make your city more What is your primary industry?
competitive for busienss? % respondents
Select up to three
% respondents 2.0 2.6 2.3 6.2 2.3 2.6 9.8 4.9 15.1 0.3 9.8 12.5 2.6 8.5 4.3 3.0 2.6 8.5
16
15
35.0 46.7 44.7 33.0 21.8 26.9 18.6 17.6 13.0 11.5 6.1 1.0 1.0 14
13
50 12
11
10
40 9
8
7
30 6
5
4
20 3
2
1
10 0

Agriculture and

and real estate

Energy and
natural resources
agribusiness

Automotive

Entertainment,
media and
Chemicals

Construction

Consumer
goods

Education

publishing

Financial services

Government/
Public sector

Healthcare,
pharmaceuticals
and biotechnology

IT and technology

Logistics and

Manufacturing

Professional
services

Telecoms

Transportation,
travel and tourism
distribution

Retailing
0
Improving Improving Encouraging Improving Raising the Improving Reducing Supporting Improving Reducing Attracting Other My city is
public schooling/ multinational safety and city's profile social environ- local healthcare corruption major already
trans- education companies to security and integration mental businesses facilities and sporting/cul- competitive
port/roads set up improving its impact ahead of access to tural events
business reputation multi- care
nationals

Which country are you based in?


What are your organisations global annual revenues in US Dollars?
% respondents
% respondents

11.5 8.1 4.4 3.7 3.4 3.2 2.9 2.7 2.4 2.0 1.5 1.2 1.0 0.7 0.5 0.2 20.7 14.4 15.4 10.8 18.7 6.6 13.4
12 25
11
10
9 20
8
7
6 15
5
4
3 10
2
1
0 5
United Canada Costa Rica Saudi Brazil Peru Mexico Argentina Australia Bahrain Switzerland Afghanistan New India Finland Bahamas
States of Arabia Zealand
America
United Arab Turkey Chile Colombia Israel Egypt Czech 0
Emirates China France Hong Kong Norway Republic

Spain Germany Indonesia Sweden Denmark Less than $50m $50 to $100m $100m to $500m $500m to $1bn $1bn to $5bn $5bn to $10bn $10bn or more
United Italy Malaysia Taiwan Netherlands
Kingdom Japan Philippines Vietnam

Qatar Singapore
Sri Lanka South Korea
Thailand
Which of the following best describes your title?
% respondents

3.9 25.6 14.8 3.0 3.3 23.6 5.6 11.5 8.9 0.0
Which of the following best describes your occupation? 30
% respondents
25
75.1 24.9
20
80
70 15
60
50 10
40
5
30
20 0
10
0
Board CEO/ CFO/ CIO/ Other C-level SVP/VP/ Head of Head of Manager Other
member President/ Treasurer/ Technology executive Director Business Department
I am a business executive I am a policymaker (eg mayor, government official, etc) Managing Comptroller director Unit
director

32 Written by the Economist Intelligence Unit and sponsored by FCC, 2015 33 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

Urban infrastructure insights 2015

Whilst every effort has been taken to verify


the accuracy of this information, neither The
(FRQRPLVW,QWHOOLJHQFH8QLW/WGQRUWKHVSRQVRU
of this report can accept any responsibility or
liability for reliance by any person on this report
or any of the information, opinions or conclusions
VHWRXWLQWKHUHSRUW

0DLQ2IFH 0DGULG
$YHQLGDGHO&DPLQRGH6DQWLDJR0DGULG6SDLQ
ZZZIFFHV 7HO)D[

34 Written by the Economist Intelligence Unit and sponsored by FCC, 2015

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