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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
Follow the author on Twitter: @shomik_raj
 

One of the shiny new Ecovía buses
Listening to Juan Ayala rave about how they only let the most talented bus drivers operate the shiny new buses on the Ecovía Bus Rapid Transit (BRT) system, we realized how fantastic our job is. Not only do we have the privilege to help plan and implement transformational projects such as Monterrey’s first BRT line, but we actually get to see the results of our work firsthand.

One should not underestimate the importance of Ecovía, a new 30-km BRT corridor crossing Monterrey from east to west. The original goal was to create a high-speed, high-quality mass transit system that could provide rail-like performance at a fraction of the cost. If the first six weeks are any indication, Ecovía certainly has achieved that. At 30 km per hour, the average travel speed of the BRT is close to double that of regular bus lines across the city; an influential local TV host found that end-to-end travel times on the system were over an hour faster than by private car; ridership levels are higher than what government expected for this still partial roll-out (35 of the scheduled 80 vehicles are operating); and in a recent survey, 75% of the sampled riders judged the overall system to be an 8 or higher on a scale of 10.

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.
 

Bus Rapid Transit Comes to Washington, DC

Duncan Gromko's picture

Bus Rapid Transit in Delhi, IndiaA Bus Rapid Transit – BRT – system is coming to Washington, DC in the spring of 2014. The proposed corridor will connect Crystal City in Arlington with the Potomac Yard in Alexandria.
 
This is good news for DC residents, who are currently dealing with the worst traffic in the country. DC commuters lose an average of 67 hours per year because of congestion, resulting in an additional 32 gallons per year per commuter of gasoline wasted.
 
BRT systems address traffic problems by creating dedicated lanes for buses. As shown in the above photo of Delhi, cars are physically restricted from bus lanes. This allows buses to travel faster than cars, making them a more attractive transport option for commuters and reducing car usage. Basically, a BRT is an aboveground subway, except that it costs 1/10th the price.

Meet me at the back of the bus

Marc Juhel's picture

If you miss me at the back of the bus, and you can't find me nowhere
Come on up to the front of the bus, I'll be ridin' right there
I'll be ridin' right there
I'll be ridin' right there
Come on up to the front of the bus I'll be ridin' right there

Joburg's Transit Breakthrough

News story by Gail Jennings, Johannesburg

Informal ‘jitney’ associations transcend their warload past to become shareholders in South Africa’s first-ever Bus Rapid Transit (BRT) system

JOHANNESBURG – Waiting, waiting, without facilities, still waiting, crammed, hemmed in, no brakes, no license, angry club-wielding drivers fighting for the most lucrative routes.  Weaving haphazardly through traffic at often frightening speeds. .. Scrabbling for the right coins, late, confusion, music that leaves your ears ringing, fists, bullets, escape... The stories travellers tell of their minibus taxi adventures.

Bus Rapit Transit in JohannesburgThis sort of  informal, unscheduled and unregulated taxi system still exists in most of Johannesburg.

But the 25km link between the central business district and Soweto with its 1.4 million residents is now plied by sleek red buses travelling on time and on schedule. Three years ago, the government launched Rea Vaya (“we are going”), South Africa’s first bus rapid transit system (BRT).  Rea Vaya has replaced the ramshackle minibuses with modern vehicles and an entirely different, formal operating system.

“What do you people have against pedestrians and bicycles?”

Holly Krambeck's picture

It doesn’t happen very often. Thank goodness. But there are times, very rare  times, when in our work, we experience a kind of mid-life crisis, when some external event sparks the realization that we have been traveling down a decision-path for so long, we’ve lost sight of something very important – when we stop and say, how did we get here?

It happened last month -- in Weihai, China’s Shandong Province, where we are working with the municipal government on the development of the city’s first Bus Rapid Transit (BRT) lines.