1. 1 Human Settlements Financing Division Bert Diphoorn Director, Human Settlements Financing Division UN-HABITAT Seville, 15-16 October 2008

2. 2 HS Financing Division Human Settlements Financing Division is new Human Settlements Financing Division is new under development as a new division – coordination and consolidationunder development as a new division – coordination and consolidation Two main branches: Two main branches: Water, Sanitation and Infrastructure Branch - lead for MTSIP Focus Area 4 on InfrastructureWater, Sanitation and Infrastructure Branch - lead for MTSIP Focus Area 4 on Infrastructure Urban Finance Branch – Policy, SUF, and ERSO - lead for MTSIP Focus Area 5 on Finance SystemsUrban Finance Branch – Policy, SUF, and ERSO - lead for MTSIP Focus Area 5 on Finance Systems Main Issues: Main Issues: New staffing at D1 Chiefs level and below, coordinationNew staffing at D1 Chiefs level and below, coordination Capacity BuildingCapacity Building Integration between branches and other Focus AreasIntegration between branches and other Focus Areas Carrying forward what works best in Programme formatCarrying forward what works best in Programme format

3. 3 Water, Sanitation and infrastructure Branch -WSIB Currently implementing a five year strategic plan (2008-2012) in the areas of: Delivering sustainable services for the poor; Ensuring synergy between the built and the natural environment; Monitoring the MDGs and beyond; Integrating infrastructure and housing. Ongoing Activities include: I. Regional operational activities: Water for Asian Cities Programme (on-going) Water for African Cities Programme (on-going) Water for Latin American Cities and the Caribbean (New Initiative) II. Normative activities providing a neutral forum for policy dialogue among service providers, users, utilities and governments, including values based water, sanitation and hygiene education II. Replicable Model-Setting Initiatives: Lake Victoria Region Water and Sanitation (on-going) Mekong Region Water and Sanitation (on-going) V. Monitoring progress towards the water and sanitation related MDGs VI. Global Alliance of Water Operators Partnerships (New Initiative) VI. H2O Monitoring services to inform and Empower (new initiative with Google.org)

4. 4 Slum Upgrading Facility (SUF) Programme Management at Nairobi HQ and - Programme Management at Nairobi HQ and - 3 Year SUF Pilot Programme promoting - 3 Year SUF Pilot Programme promoting - Pioneer Local Finance Facilities: Pioneer Local Finance Facilities: Localizing upgrading/housing finance delivery mechanisms through SUF Local Finance Facilities –Localizing upgrading/housing finance delivery mechanisms through SUF Local Finance Facilities – these are multi-stakeholder Boards comprising senior level banking representatives, the slum dwellers’ organisations, professionals, and local government as problem-solving pioneers of local upgrading projects Multiple Pilot Sub-Projects demonstrating processes and long term nature of finance mechanismsMultiple Pilot Sub-Projects demonstrating processes and long term nature of finance mechanisms Developing the potential for full long term Facility Developing the potential for full long term Facility

5. 5 ERSO Progress Experimental Reimbursable Seeding Operations and other Innovative Financial Mechanisms to catalyze Investments in Pro-poor Housing, related Infrastructure and Upgrading (ERSO) Key Activities implemented April to October 2008   Follow-up on Expert Workshop held in Stockholm: Identification of project opportunities based on ideas presented by potential partners   Refinement of ERSO Operations Manual   Continued Research and Documentation on Innovative Mechanisms for Low-income Shelter Finance   Development of ERSO project briefs and Business Plans   Establishment of the ERSO Steering and Monitoring Committee (SMC) and first formal Meeting held in September 2008 The Way Forward: Activities in Q4 2008   Project selection, development of business plans and preparation of contractual agreements based on the recommendations of the SMC together with project partners within the current funding context   Continuation of research and knowledge dissemination efforts   Further partnership building and fund-raising efforts to develop further experimental operations