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Maximizing finance for sustainable urban mobility

Daniel Pulido's picture
Photo: ITDP Africa/Flickr

The World Bank Group (WBG) is currently implementing a new approach to development finance that will help better support our poverty reduction and shared prosperity goals. This crucial effort, dubbed Maximizing Finance for Development (MFD), seeks to leverage the private sector and optimize the use of scarce public resources to finance development projects in a way that is fiscally, environmentally, and socially sustainable.
 
There are several reasons why cities and transport planners should pay close attention to the MFD approach. First, while the need for sustainable urban mobility is greater than ever before, the available financing is nowhere near sufficient—and the financing gap only grows wider when you consider the need for climate change adaptation and mitigation. At the same time, worldwide investment commitments in transport projects with private participation have fallen in the last three years and currently stand near a 10-year low. When private investment does go to transport, it tends to be largely concentrated in higher income countries and specific subsectors like ports, airports, and roads. Finally, there is a lot of private money earning low yields and waiting to be invested in good projects. The aspiration is to try to get some of that money invested in sustainable urban mobility.

Africa is paving the way to a climate-resilient future

Tara Shirvani's picture



Let me answer it this way: If you are a youth, you are damned if you farm, and you will be equally damned if you don’t. Farming as an option is very key to enabling the continuous production of food to meet our consumption demand. We are in an era where we have to attract the young people to join food production, since majority of them think it is dirty work. Interacting with young farmers has only left me understanding that, besides the lack of mechanisation, we lack the best farming practices that would otherwise increase our earnings.

Can Dar es Salaam become the next global model on transit-oriented development?

Chyi-Yun Huang's picture
Photo: World Bank
Public exhibition at Gerezani BRT Station in Dar es Salaam, Tanzania on October 12, 2017.
(Photo: World Bank)

Many urban planners may know the success stories of Curitiba, Singapore or London realizing transit-oriented development (TOD). However, TOD is still very new in Sub-Saharan Africa. Although this concept of leveraging on major transit infrastructure to affect integrated land-use development for greater benefits may be gaining more recognition, there are few examples of successful TOD in Sub-Saharan Africa beyond a couple of South African cities, such as Cape Town and Johannesburg.

Dar es Salaam, Tanzania now has the perfect opportunity to become a pioneer on transit-oriented development.

Dar es Salaam, the largest city in Tanzania with a population of 4.6 million, is expected to become a mega city by 2030 with a population over 10 million. However, its growth has been largely shaped by informality, coupled with a lack of hierarchy in roads and transit modes. It is increasingly difficult to get around the city without being stuck in traffic for hours. The complex and fragmented institutional structure of Dar es Salaam compounds the challenges, making management of the city complicated and less effective.

Urban transport: Lagos shows Africa the way forward (again)

Roger Gorham's picture
Photo: Ben Eijbergen
With a metropolitan population approaching 23 million, Lagos is the economic engine of Nigeria and one of the largest cities on the African continent. Rapid growth, unfortunately, has come with a myriad of urban transport challenges. To get around, most residents rely on the thousands of yellow mini-buses that ply the streets—the infamous "Danfos"—and on a growing supply of three-wheelers. These limited options, combined with endemic congestion, make commuting in Lagos a slow, unreliable, and expensive endeavor.
 
But this entrepreneurial city cannot afford to be stuck in traffic. Things started moving in 2008, when Lagos introduced Africa's first Bus Rapid Transit (BRT) corridor with technical support from the World Bank under the Lagos Urban Transport Project. The corridor was referred to as BRT-lite, a local adaptation that did not apply all the "classical" features of a BRT (level loading, fancy stations) but was well integrated with the local environment and became immediately successful. In fact, the operator was able to recoup its capital investment in the bus fleet in 18 months even without banning competitor services. The BRT services demonstrated that improving the erstwhile chaotic system was indeed possible.
 
Building on this success, Lagos has taken steps to improve and expand the reach of the BRT. The Second Lagos Urban Transport Project (LUTP2), supported jointly by the World Bank and the French Development Agency, provided about $325 million in 2009 toward building a 13-km extension of the BRT corridor between Mile 12 and the satellite town of Ikorodu. In addition to the BRT infrastructure, the project financed the rehabilitation and widening of the road from four to six lanes, the construction of pedestrian overpasses, a bus depot, terminals, a road bridge, measures to enhance flood resilience, as well as improved interchange and transfer facilities.

Will the Asian Infrastructure Investment Bank become the new musketeer?

Arturo Ardila's picture
On Monday, China officially launched the Asian Infrastructure Investment Bank (AIIB) in a ceremony with representatives from the bank's 57 founding-member countries. AIIB will have a capital base of US$100 billion, three-quarters of which come from within Asia.
 
Infrastructure is a growing need for Asia,
and collaboration is critical to filling
gaps. Photo: World Bank

At the inaugural ceremony in the Great Hall of the People, Chinese President Xi Jinping reaffirmed the new institution's mission, saying that "Our motivation [for setting up the bank] was mainly to meet the need for infrastructure development in Asia and also satisfy the wishes of all countries to deepen their co-operation."

Indeed, the AIIB is a major piece of China's regional infrastructure plan, which aims to address the huge needs for expanding rail, road and maritime transport links between China, central Asia, the Middle East and Europe. But the AIIB should also represent a huge opportunity for cooperation not only between countries in the region but also with other multilateral development banks.

Our experience working on transport mega-projects co-financed by several multilateral development banks (MDBs) already shows that this collaboration is much needed and critical for the success and viability of mega-projects. The most recent experience with the Quito Metro Line One Project, for example, shows that the co-financing banks – World Bank, Inter-American Development Bank, Andean Development Corporation and European Investment Bank –  brought not only their financial muscle but also their rich and diverse global knowledge and experience.  Incidentally, because of the Quito Metro project, all the MDBs involved in the project were dubbed as the  “musketeers, ” precisely due to the high degree of collaboration and team work that is making this project a success.

Exploring Value for Money analysis in Low-Income Countries

Irene Portabales González's picture
The World Bank has identified 34 countries that qualify as Low-Income Countries (LICs) for 2015. LICs have a per capita income less than US$1,045 per year, while the world average is US$14,307. These countries face important infrastructure gaps that need to be addressed in order to support economic growth and reduce extreme poverty.
 
Cover of the "Value for
Money" report

Design: Sara Tejada

Public-Private Partnerships (PPPs) have been an important option to develop infrastructure and services.

However, challenges for preparing, procuring and monitoring PPP projects in LICs are huge. Challenges include weak institutional capacity, constraints in fiscal space, shallow capital markets, and lack of access to long-term financing.

Despite these challenges, LICs have made important efforts to implement PPP policies, laws and regulations. As a result, these countries closed 377 PPP deals between 1987 and 2013. Even with this considerable effort, LICs still have important infrastructure needs. This is a good start, but hardly enough to tackle the problem.

During the project selection stage, LIC governments have to discuss whether a particular project should be implemented under a PPP scheme or through traditional procurement. There are several reasons why governments decide to implement a PPP: to accelerate public investment programs, maximize the fiscal space or to try to avoid fiscal controls, for example.

At this key decision point, various options can be considered by governments, including a Value for Money (VfM) analysis.

Want Healthy, Thriving Cities? Tackle Traffic Safety First

Jose Luis Irigoyen's picture


Every year, more than 1.2 million people die in traffic crashes worldwide, equivalent to nearly eight Boeing 747 plane crashes every day. As developing economies grow and private car ownership becomes more mainstream, the number of associated crashes and fatalities will continue to rise.
 
The challenge of traffic safety often flies under the radar in cities, where the social and economic challenges of accommodating growing populations take precedent. Without meaningful change, however, the World Health Organization (WHO) projects that traffic crashes could become the fifth leading cause of premature death worldwide by 2030. This takes a particular toll on cities, which are already home nearly half of global traffic fatalities. City leaders must prioritize traffic safety measures to ensure that their citizens have safe, healthy and economically prosperous cities to call home.
 
With Urban Growth Comes Traffic Safety Challenges
 
While there are a number of factors that contribute to traffic crashes, two of the primary challenges are rising motorization trends in cities worldwide and the issue of road equity: the most vulnerable road users, including pedestrians and cyclists, are most impacted by traffic crashes. On top of that, these users, typically lower-income, don’t always have the power or capacity to create the necessary changes.
 
The number of privately owned cars on the road hit the one billion mark for the first time in 2010. If we continue business-as-usual, that number will reach an estimated 2.5 billion cars by 2050. All of these new cars will lead to an increase in traffic congestion in cities worldwide, increasing the probability of traffic crashes and resulting fatalities.

Bogota: TransMilenio’s overcrowding problem and a professor's solution

Jean Paul Vélez's picture
Also available in: Español
 
Follow the authors on Twitter: @jpvelez78@canonleonardo and @ScorciaH
 
Why TransMilenio isn't working (Spanish)

A few weeks ago, a video entitled “Why doesn’t TransMilenio work?” created a huge buzz among the residents of Bogota. The graphically impeccable video, produced by local Colombian firm Magic Markers, proposes solutions for addressing the systematic overcrowding problem faced by the city’s Bus Rapid Transit (BRT) system known as ‘TransMilenio’. It is based on research conducted in 2012 by a university professor, Guillermo Ramirez, and his students. The video has been watched on YouTube over 700,000 times and has been discussed by important national media outlets. 

As urban transport experts and Bogotanos interested to see TransMilenio improved, we wrote a blog post in Spanish breaking down the video between the points with which we agree and the points with which we disagree, and circulated it in social media to further promote the debate. We are now sharing that blog post in English as we believe it offers some interesting discussion points about the challenges of high capacity BRT operations that are relevant in a broader context.

Ecovia in Monterrey -- How Bus Rapid Transit is Transforming Urban Mobility

Shomik Mehndiratta's picture

Effective education reform? Evidence-based policy making can light the way.At the launch of the World Bank's new Education Strategy for 2020 during the "What Works in Education” Policy Research Colloquium this spring, World Bank President Robert Zoellick urged the international development community to focus on interventions that produce learning results and emphasized the vital role that evidence must play in propelling smart investments in education. The strategy also emphasizes the Bank's role in helping countries move beyond the provision of inputs to a system-level approach for improving the quality, performance, and outcomes of education programs.

To improve learning for all, we are rolling out an innovative assessment tool to help our partners use knowledge more effectively to drive education reform.

The System Assessment and Benchmarking for Education Results (SABER) initiative is being designed to help countries systematically examine and better understand their education system's policies.  SABER's policy diagnostics are being built upon a solid evidence base and draws from research on the education policies of well performing or rapidly improving education systems. By leveraging global knowledge, SABER fills a gap in the availability of policy data and evidence on what policies matter most to improve the quality of education and achievement of better results.

The Way We Move Will Define our Future

Marc Juhel's picture
Mobility is a precondition for economic growth: mobility for access to jobs, education, health, and other services. Mobility of goods is also critical to supply world markets in our globalized economy. We could say that transport drives development.
 

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