WHY DO CITIES ESTABLISH DEVELOPMENT FUNDS?
Urban development cannot rely solely on annual budgets or short term financing. Major infrastructure projects that address essential urban needs including roads, public transportation, housing, energy, water supply, and green infrastructure require long term and sustainable sources of financing.
For this reason, cities establish development funds to ensure the continuous implementation of development policies and strategic projects, diversify financing sources, and increase the participation of the private sector and investors.
Development funds play an important role in:
Providing stable, long term financing for strategic urban projects
Reducing dependence on annual budgets and diversifying financing sources
Attracting domestic and international investment into urban development
Utilizing bonds and other capital market instruments
Reinvesting returns from investments into future projects and infrastructure development
Expanding financing for green and sustainable development projects
As UNCCD COP17 is being hosted in Ulaanbaatar, greater emphasis is being placed on translating objectives related to land restoration, sustainable water resource management, nature based solutions, and green infrastructure into tangible projects and investment opportunities.
In this context, development funds can play a significant role in mobilizing investment and expanding sustainable financing for long-term projects such as green housing, renewable energy, sustainable water management, and environmentally friendly infrastructure.
UBIM serves as the entrusted manager of the Capital City Development Fund and works to attract investment into projects and programs aligned with the Capital City’s development policies, diversify financing sources, and mobilize long term sustainable financing through capital market opportunities.
Connecting urban development priorities with tangible investment and transforming today’s financing into a foundation for sustainable development in the future represents the core value of a Development Fund.
