**Annex 8: Scope of Work-Government of Japan Supported Study**

# **Introduction**

With funds from the Government of Japan, the World Bank (LCR-FPSI) intends to develop city performance indicators that would provide cities with a clear indication of service delivery standards and local quality of life, or ‘livability’ as well as economic vitality and business climate. The indicators would also provide other benefits, such as measuring the impact of public sector or international finance interventions. The following terms of reference outline the methodology of city indicators and the tasks to be undertaken by a consulting firm to develop and implement these city indicators.

# **Objectives**

The first phase of this study would review existing city indicators, what they measure, how they are produced, frequency, and quality and relevance of information provided. The result of this first phase would be presented in a Discussion Document and reviewed at a venue(s) such as the World Bank’s Urban Forum. After comments from cities and other municipal practitioners are received, the document would be finalized in a manner that facilitates regular updating. This phase will receive considerable assistance through a paper that the World Bank is now preparing for presentation at the World Urban Forum in Vancouver June 2006.

The second phase of the study would propose a draft set of city indicators that meets the overall concept defined above (livable and competitive cities) as well as the needs of pilot cities identified in Colombia, and Brazil, and is consistent with the indicators being developed in Part 1 cities, e.g. by Toronto, Vancouver and the Government of Canada. The World Bank is keen to use these indicators as a critical component in performance benchmarking of Bank supported Urban Projects.

# **1. Compilation of Existing City Indicators and Annual Report Information**

Building on the comprehensive Habitat data base of city indicators, compile and analyze existing city indicators and city ‘report cards’ in both Part 1 and Part 2 countries. Produce a 'Discussion Document' that would be structured to solicit input from all practitioners in this sector. After a four month review period the consultant would compile all comments and produce a final document by February 15, 2007 that would include the development of a website to ensure that the report becomes a 'living document'' and is regularly updated:

- review, compile and evaluate existing city rating systems

- review, compile and evaluate existing city ‘annual plans’ and where available, how city ratings are presented in the context of the overall annual plan

- estimate costs for data collection as presented in best examples and estimate overall accuracy of data and its ability to represent city service standards and ‘quality of life’

- pay particular attention to cities in developing countries, but also include activities in at least Japan, Canada, Australia, New Zealand, Britain and Netherlands (list cities that have ISO 9000 and/or 14000 certification)

- review global indicator programs such as Transparency International, World Bank’s ‘Doing Business’ program, UN-HABITAT, Economist, and US Central Intelligence Agency

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