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Transport

India’s Tryst with PPPs: The High, The Low… and The Revival?

Sri Kumar Tadimalla's picture
For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors.


In several economic infrastructure sectors, India enjoyed a strong track record of harnessing Public-Private Partnerships (PPPs). Private sector investments in infrastructure more than tripled from the 10th Plan Period (2002-07; INR 2 trillion) to the 11th Plan (2007-12; INR 7.3 trillion). Between these plan periods, private sector share in infra investments increased from 22% to 38%. For a considerable period of time, on the score of mobilizing infrastructure investments through private participation among developing countries, India ranked 1st in Energy and Transport sectors and 2nd in Telecom (behind Brazil).
 
This erstwhile success of India’s PPP program is attributable to well-crafted reform efforts by the government, and ably executed by the private sector, banks and other financial intermediaries. Following the economic liberalization initiated in the early 1990s, the government has created an enabling environment for private participation through several sector-specific and cross-sectoral initiatives, e.g., relaxing entry norms, tax concessions, independent regulation in telecom and power, mobilization of additional revenues through tolls and cess on fuel, establishment of a viability gap fund mechanism and India Infrastructure Financing Company Limited, etc.  The financial intermediaries, too, quickly moved up on a steep learning curve to cater to this new and challenging mode of delivering infrastructure services. Private sector responded enthusiastically and seized these opportunities to develop their own capabilities and progressively build larger and complex projects. Today, private sector operators are serving more than 90% of the mobile phone users, owning ~40% of the power generation capacity, built and operating a substantive portion of arterial network of national highways, besides world-class airports in four metros and container handling facilities at many ports.

How can green growth benefit Africa?

Eun Joo Allison Yi's picture
Photo: Sarah Farhat/World Bank Group


What exactly do we mean by green growth? For us, it’s not just about riding bikes and planting trees. The Korea Green Growth Trust Fund (KGGTF) defines green growth as adopting an innovative approach toward reaching nations’ goals for sustainable development and addressing climate change. It is a framework for decision-making and a proven process for turning people’s hopes into reality.

Real-time data as an early warning signal

Fida Rana's picture

The risks inherent in public-private partnerships (PPPs) are real. These long-term projects require substantial investment: typically, PPP project funding structures constitute 70 to 80 percent debt, with the remaining coming from equity sources. Because of the nature of these projects, their loan repayment profile demands a longer tenor. In a practical sense, once lenders start disbursing funds to a PPP, the loans could remain on their balance sheet for around 20 years. This is a typical scenario.

For such prolonged engagement in PPP projects, lenders’ ability to monitor the project during the construction and operation phase becomes critical. The approach to monitoring we’ve been offered so far serves its purpose up to a point, but promising developments in real-time data monitoring have the potential to serve as effective early warning signals—assuring the success of a PPP in ways that could revolutionize certain sectors.

Transported back in time

Elisa Liberatori Prati's picture
Panel members, left to right: Denis Robitaille, Slobodan Mitric, Maryvonne Plessis-Fraissard,
Christine Kessides, and Georges Bianco Darido. © Elisa Liberatori Prati/World Bank


How do you think the challenges faced by the World Bank’s urban transport teams have changed since the sector emerged in the 1970s? Did they become more or less complex? And what factors influenced the sector’s evolution? Recent research by Slobodan Mitric on the early years of the Bank’s urban transport sector gave Bank staff a unique opportunity to glimpse into the past, find some answers to these questions, and uncover the knowledge hidden in the historical records of the World Bank Group Archives.

Mitric, who has spent his entire professional life working on the subject of transport in cities and retired from the Bank in 2003 as a lead urban transport specialist, presented the findings of his research in the Archives at a panel discussion on the “World Bank’s Engagement with Transport in Cities: The Early Years 1972-1982” last month. The panel was organized by the World Bank Group Archives jointly with the History, Urban & Water, and Transportation Thematic Groups of the 1818 Society.

We, the people, for the global bicycle momentum

Leszek J. Sibilski's picture

“Get a bicycle. You will not regret it. If you live.” - Mark Twain
 
Have you ever wondered what happened to once commonplace items such as the abacus, the slide rule, the hourglass, or the quill; not to mention, VHS recorders, CD cassette players, and more recently, address and telephone books? They all met the same fate: they were replaced by modern technological innovations such as calculators, electronic watches, ballpoint pens, and computers. And what happened to the bicycle? It has been with us for over 200 years, and by some estimates, there are more than two billion bikes in use around the world and by 2050 this number could reach five billion. Over fifty percent of the human population can ride a bike. The bicycle is a veteran and mainstay of human mobility. Even competitive riders pay respect to the utility of bicycles outside grand tours. One of them, Ted King predicted: “Bicycles have the potential to save the world. There’s so much that a bicycle can do, from an environmental standpoint, from a health standpoint, and their social impact.” 
 
Amid the recent surge in global popularity of cycling - in sport, in leisure and in urban commuting - two presenters of Italian RAI2 radio believe that the Nobel Peace Prize should go to the bicycle. The presenters of the popular Caterpillar program describe bikes as an "instrument of peace". They say the bike "is the most democratic means of transport available to humanity". Proponents have also used the example of Italian cycling champion Gino Bartali, who during World War II ferried counterfeit documents by bike to save Jews, as an example of how the cycle has aided in "liberation and resistance". Additionally, 118 Italian Members of Parliament have also officially nominated the Afghan Cycling Federation women's team for the 2016 Nobel Peace Prize. They hail the bicycle as environmental, economic, and democratic.
 
In November 2015, the European Cyclists’ Federation (ECF), in collaboration with the World Cycling Alliance (WCA), announced their commitment to the UN Sustainable Development Goals and to the UN’s Secretary General, Ban Ki-moon, who called for voluntary commitments from civil society to tackle climate change. In “Cycling Delivers on the Global Goals” the direct impact of cycling can be demonstrated on at least 11 of the 17 Global Goals. Recent research presented in “A Global High Shift Cycling Scenario” by UC Davis firmly concludes: “The results show that a world with a dramatic increase in cycling could save society $24 trillion cumulatively between 2015 and 2050, and cut CO2 emissions from urban passenger transport by nearly 11% in 2050 compared to a ‘High Shift’ scenario without a strong cycling emphasis.”
 
The global community of cycling enthusiasts celebrates, even worships, the loyalty of the freedom machine to humanity by organizing events all over the world. However, well- intentioned or -organized, all these remain out of sync with very diversified agendas. After over two centuries of stellar service to humankind, we, the people, believe that the bicycle deserves an official annual World Bicycle Day sanctioned by the United Nations, and preceded by the International Year of Bicycle Awareness and Education of Cycling for All.

An Evaluation of Bogota’s Pro-Poor Transport Subsidies— How effective are they?

Camila Rodriguez's picture

Public transport is an important mode of transport, especially for low-income populations. Cities, however, struggle to provide public transport services for fares that are both affordable and financially sustainable. Since meeting both goals is quite difficult, transport systems either end up relying on high levels of subsidies or charging transit fares that are too expensive for the city’s poor.

To tackle this challenge, the World Bank in 2013 supported the city authorities of Bogotá, Colombia, in designing a pro-poor transport subsidy scheme that would help low-income populations have access to more affordable public transport. In Bogotá fares for its new public transit system are set higher -closer to cost-recovery levels-, than in other cities that provide greater public subsidies to their operators. Despite having more sustainable fares, Bogotá risks excluding people from its transport services—in fact, households in the poorest areas of the city spend a greater percentage of their income on transport, between 16% to 27%, compared to a maximum of 4% in areas that are relatively richer.

Picking up the Glove on Road Safety

Verónica Raffo's picture
I was part of the World Bank delegation that participated in the 2nd Global High Level Conference on Road Safety, held in Brasilia on November 18-19. 
 
I arrived with high expectations on what this event could mean in terms of re-launching international efforts to fight against this global epidemic that kills 1.25 million people, and maims another 50 million, every year.
 
For the road safety community, the Brasilia conference was a crucial moment to take stock of what has been achieved so far, and rethink the strategy towards the future so the international community can scale up action and funding to meet the UN Decade of Action  targets and the respective SDG targets on road safety.
 
In these first five years of the Decade of Action (2010-2020), the initial objective, namely stabilizing road deaths, has been achieved: global road deaths (per year) have plateaued since 2007, as shown by the WHO latest report. We  should note, however, that among the largest contributors of road deaths (China, India, Brazil, among others) there is significant potential for under-reporting.
 
In any case, we are still far away from the objective at the heart of these international commitments: reducing road deaths by half by the end of the decade.  And we should also note that 90% of these deaths continue to happen in low and middle-income countries, affecting the youngest and most vulnerable.
Streets in Bogota / Photo: Carlos Felipe Pardo, Flickr.

How Ho Chi Minh City got a facelift: sustainable development solutions are changing a city

Madhu Raghunath's picture



When I visited Vietnam for the first time three years ago, I imagined a Ho Chi Minh City out of Hollywood movies, with panoramic buildings of French architecture, tree-lined, long boulevards and the melting pot of Indochine cuisine.

After I began working in the city as an urban professional in 2012, I quickly learned to see it as much more: a vibrant, young, hip and energetic city with a vision and determination to become a leading metropolis in East Asia, not just in Vietnam, one of the fastest-growing emerging economies in the region.

And it has taken all the right steps just to do that, combining infrastructure development with social services to make sure the city is more livable and growth more sustainable. As the World Cities Day approaches, I thought it would be useful to share the city’s experience with the world. 
 

Doing development differently: what does it mean in the roads sector?

David Booth's picture



There is no sign that the revival of interest in adaptive and entrepreneurial approaches to development work is going tail off soon.

That’s why the demand is growing for indications of how the broad principles, as summarised in the Doing Development Differently Manifesto, apply to the various sectors where interested practitioners are found.
 
Fred Golooba-Mutebi and I have just published an ODI working paper that begins to fill that gap for one particular economic infrastructure sector, road construction and maintenance. The country is Uganda. The purpose of the study was to revisit a 2009 paper on the political economy of reform in the sector, which was followed by the launching of a DFID-funded programme called CrossRoads.
 

Do better roads really improve lives?

Eric Lancelot's picture
Also available in: Español | Français | العربية | Português

How can improved roads change peoples’ lives? How much do people benefit from road projects? Answering these seemingly simple questions is, in fact, much trickier than it appears.

We recently concluded an impact evaluation to measure the socio-economic impacts of World Bank-financed municipal road improvements on poor rural households in the state of Tocantins, Brazil. After 10 years of study, what were the results and lessons learned? And how did we go about conducting the evaluation?

The study followed a methodology traditionally used in impact evaluations in the social sector and was based on a precedent in Vietnam. Throughout the state, one of the least-developed and least-populated in Brazil, most municipal roads are unpaved with inadequate maintenance. The World Bank’s municipal roads project helped construct 700 concrete bridges and 2,100 culverts crossing rivers and streams, providing year-round access to remote populations that once couldn’t access municipal centers during rainy season.

The anticipated result chain of the project was as follows: improvement of physical accessibility would contribute to increase travel demand to markets, schools and health services. This would, in turn, contribute to improved education, better health and increased business opportunities. Finally, it would result in long-term household income growth.

Our study aimed at measuring these impacts through a “difference in differences with matching,” a method that compares a treatment group (population benefiting from the interventions) and a control group (population that does not), while ensuring similar socio-economic characteristics (or comparability) between groups. An “instrumental variables estimator” was then used to confirm the robustness of the results.

The results show positive socio-economic impacts to rural residents, as well as provides for several policy implications:

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