Building Coastal Resilience in Asuncion through Climate Smart Solutions

Project Summary:

The project aims to strengthen urban resilience in the Municipality of Asuncion, and specifically in the flood prone coastal strip known as Los Bañados, through: (i) the development of a decision support system (DSS) for flood risk management to classify and prioritize green urban interventions in the coastal area; (ii) the development of pre-feasibility studies for a US$ 60-70 million investment project in Los Bañados that will be materialized through WB financing; and (iii) the scoping of entry points for private sector participation in Distrito Ecobahia, an area adjacent to the aforementioned project which has been deemed for a mixed-housing development.  The project will build on a US$ 400,000 ASA that helped the Government of Paraguay to identify a conceptual project in the city’s coastal area. Through the development of this proposal, the government intends to go deeper developing necessary studies to turn the concept into a lending operation with a first batch of targeted interventions, and to ensure that such interventions (and overall local planning instruments for the longer-term development of Los Bañados) fully embed green growth and low carbon development principles.

List of Activities:

1. Decision Support System (DSS)
   1. Development of a DSS for flood risk management to prioritize green urban investments
2. Pre-feasibility studies for strategic projects in Los Bañados 
   1. Pre-feasibility studies for catalytic interventions in public spaces for flooding risk management
   2. Pre-feasibility studies for the construction of key green and grey infrastructure 
3. Unlocking the potential of Eco Bahia District
   1. Scoping of LVC opportunities in Eco Bahia District
   2. Climate smart designs for social housing and urban equipment in Eco Bahia District
4. Capacity Building 
   1. Promoting green growth and participatory approaches in local planning instruments

Outcomes:

Output 1:

• Decision Support System platform - DSS developed and delivered to the government 

Output 2.1:

• Pre-feasibility study for public spaces

Output 2.2:

• Pre-feasibility studies for Parque Caballero, San Miguel and Eco Bahia

Output 3.1:

• Real estate market assessment for Eco Bahia 

Output 3.2:

• Climate smart designs for social housing and urban equipment in Eco Bahia District completed

Output 4:

• Workshops, trainings, and activities 

Outcomes:

1. Improved efficiency: Through drone technology and machine learning, the project will create a DDS that will shift the way decisions are taken when planning and designing interventions along the coastal area. Institutions involved in the sustainable development of Los Bañados will have embedded key social, environmental, and economic criteria aligned with GG principles in their local planning instruments. 
2. Greater resilience: An investment project aiming to increase the resilience of Asuncion will be prepared. This project will include a strong resilient housing and slum upgrading component, aiming to improve the conditions of the urban poor living in Los Bañados; nature-based solutions and green infrastructure, which will aim to address coastal flooding recurrent in the area; and greater access to basic services, to mitigate the exposure of targeted communities to natural disasters and health-related risks. 
3. Increased competitiveness: The project is framed within the Government’s post Covid-19 economic recovery plan. By the end of the proposed project, the government will have clear estimates of direct and indirect job generation through investments in infrastructure in Los Bañados, anchored in WB financing and potentially private sector participation.

Collaboration with K-Partners and Others:

• Korea International Cooperation Agency (KOICA)
• Inter-American Development Bank (IDB)