[{"bbox": [87, 106, 384, 136], "category": "Section-header", "text": "### 3.5. The Intervention Logic"}, {"bbox": [82, 150, 1170, 387], "category": "Text", "text": "The present Team Europe Initiative aims to build wealthy, resilient and sustainable cities, to the benefit of their citizens. This objective calls for a real “metamorphosis” of the selected cities and can only be achieved with an ambition of deep institutional and infrastructural improvements and a concentration of joint financing from the EU and its Member-States for a dramatic impact in those cities in the 5 years to come. A strong geographical focus and an integrated multi-sector approach – also reflected in the choice of financing modalities – are guarantees for a higher impact and this needs to be met while promoting EU “green values” for a sustainable economic growth, mindful of climate change, the need for environmental protection and inclusiveness, in particular of women, youth and vulnerable populations. To realise such an ambition, the intervention logic rests on close public-private (and non-state actors in general) dialogue and partnership (PPP)."}, {"bbox": [82, 394, 1170, 660], "category": "Text", "text": "For the public actors to deliver on their part of the partnership and create the necessary conditions for structural change to happen (e.g. urban planning²⁹, delivery of reliable services, local business environment, PPPs), budget support is considered to be the right modality, bringing leverage to promote EU values and interests (e.g. EU green investment and trade deals) as well as a strong visibility of Team Europe joint action. It may help operationalise an enabling regulatory and policy environment that will promote effective urban management, fiscal autonomy of local authorities and inclusive economic development. Indicators related to the role of the central Government (e.g. fiscal decentralisation and reliability of fiscal transfers, implementation of e-governance strategy) will complement those addressing the local level (e.g. planning and budgeting of the local development strategy). A regular and open policy dialogue with the President’s Office for Regional Administrations and Local Governments and the involved cities may ensure that policy reforms³⁰ will be adopted at central level and implemented locally."}, {"bbox": [82, 666, 1170, 825], "category": "Text", "text": "Through blending operations with European Development Finance institutions and Team Europe initiatives, concrete green infrastructure investments in sectors affected by rapid urban population growth³¹ will be combined with digital solutions to provide services to urban poor communities and support cities resilience. Depending on the nature of the investment and the ambition of the local authorities, operation and maintenance may remain a public service (e.g. for social services like water and sanitation) or be entrusted to the private sector, under the form of PPPs (e.g. markets, industrial parks, strategic value-chains promotion)³²."}, {"bbox": [82, 831, 1170, 1097], "category": "Text", "text": "To that end, the action will empower the local private sector – MSMEs and start-ups – with skills development opportunities (e.g. partnerships with European investors looking for qualified workforce) and access to financial products and services (including business development services, incubators, accelerators), in particular for women and youth. Contribution agreement with an EU Member-State with experience of working with impact funds is envisaged and would work concomitantly with EFSD+ guarantees provided to the finance sector³³. In addition, the EU aims to act as a “broker” for PPPs and European investment at local level. This will be leveraged by creating a conducive local business environment and promoting innovation ecosystems (e.g. yearly Cities Investment Forums based on the preparation of bankable projects in selected value-chains). Private-public dialogue will be inclusive in the sense that civil society organisations, as the voice of the citizens, as well as institutions such as training centres, will be involved in the dialogue around public and private development and investment strategies."}, {"bbox": [82, 1102, 1170, 1182], "category": "Text", "text": "Compared to the current low level of investment in the selected cities, the two-pronged national and local levels approach and the mix of different financial instruments are expected to strongly and sustainably boost the local economy and employment in those cities."}, {"bbox": [72, 1446, 1156, 1471], "category": "Footnote", "text": "²⁹ Resilience planning will aim to reduce disaster risks related to flooding, temper urban heat effects and improve soil and air quality."}, {"bbox": [72, 1470, 1156, 1519], "category": "Footnote", "text": "³⁰ Such reforms will ultimately improve the functioning of the national PFM systems that will facilitate the implementation of local development strategies in cities including public investments and will also facilitate local economic development."}, {"bbox": [72, 1518, 783, 1543], "category": "Footnote", "text": "³¹ e.g. water supply and sanitation, waste management, local markets, urban drainage."}, {"bbox": [72, 1542, 1156, 1617], "category": "Footnote", "text": "³² A list of possible PPPs has been prepared with financing from the World Bank in all major cities, including Mwanza and Tanga. As regards value-chain promotion, support will be provided to some of them in areas relevant to each city (e.g. fisheries, energy in Mwanza, tourism, energy, sisal, plastic in Tanga)."}, {"bbox": [72, 1616, 1156, 1661], "category": "Footnote", "text": "³³ e.g. Dutch entrepreneurial development bank (FMO) is expected to sign a NASIRA guarantee with NMB, the biggest bank in Tanzania, which has branches in selected cities."}, {"bbox": [1041, 1664, 1157, 1687], "category": "Page-footer", "text": "Page 16 of 30"}]