Syndicate content

Transport

World Bank guarantees help Pakistan get cheaper, longer term loans from international market

Enrique Blanco Armas's picture
Dasu
Photo Credit: Pakistan's Water and Power Development Authority (WAPDA)

Compared to their investment needs, developing countries have very limited concessional financing available to them. International commercial banks are constrained in terms of the size and tenors of credits to Emerging Markets and Developing Economies. A key challenge therefore, is to channel large savings and capital into productive investments in developing countries, partly by ‘de-risking’ investments and borrowings.  Pakistan is at the forefront of these efforts, recently making use of two World Bank guarantees to access over 1 billion US dollars in two international commercial loan financings.

A $420 million IBRD Policy Based Guarantee (PBG) was approved by the World Bank Board alongside a $500 million IDA credit in June 2016. The PBG guarantee partially takes over the risk of a commercial bank’s loan to a government. The PBG and the IDA credit supported a program of reforms including the adoption of a new and more inclusive poverty line, efforts to broaden the tax base, enhanced transparency of State Owned Enterprises, improved debt management and a significant overhaul of the regulatory framework of the financial sector.  Improved access to international financing through the PBG will reduce the government’s dependence on domestic financing and free up resources for private sector investment. The guarantee also signals the World Bank’s confidence in Pakistan’s economic reforms program – a signal that is particularly important after the successful completion of the IMF program. The government used the US$420 million PBG to partly guarantee a 10-year US$700 million loan, extending tenor significantly and achieving cost savings.  

Seize the Opportunity to make Dhaka a Great, Vibrant City

Qimiao Fan's picture

The success of Dhaka, one of the megacities of the world, is critically important for the economic and social development of Bangladesh. The city's astonishing growth, from a population of 3 million in 1980 to 18 million  today, represents the promise and dreams of a better life: the hard  work and sacrifices made by all residents to seize  opportunities to lift themselves from poverty towards greater prosperity. 

 
 However, as Dhaka has grown to become one of the most densely populated cities in the world, its expansion has  been messy and uneven. Dhaka's growth has taken place without adequate planning, resulting in a city with extreme  congestion, poor liveability, and vulnerability to floods and earthquakes. Many residents, including the 3.5 million  people living in informal settlements, often lack access to basic services, infrastructure, and amenities. 
 
Unplanned and uncontrolled growth has created unprecedented congestion: the average driving speed has dropped  from 21km per hour 10 years ago to less than 7km per hour today. Continuing on current trends would result in a  further slowdown to 4km an hour — slower than the average walking speed! Congestion eats up 3.2 million working hours each day and costs the economy billions of dollars every year. Some of the most important economic benefits    from urbanisation are missed out due to this messiness, resulting in lower incomes for the city and the country.
 
These problems will not go away on their own. Dhaka's population is expected to double once again by 2035, to 35  million. Without a fundamental re-think requiring substantial planning, coordination, investments, and action, Dhaka  will never be able to deliver its full potential. Dhaka is at a crossroads in defining its future and destiny. 
 
Up to now, urban growth has mainly taken place in the northern part of Dhaka and expanded westward after the  flood of 1988, when the government built the western embankment for flood protection. This resulted in high-density  investments near the city centre, where infrastructure and social services were accessible. However, real estate investments were not coordinated with other infrastructure and transportation services. 

The road to resilience: sharing technical knowledge on transport across borders

Shanika Hettige's picture
Photo: Sinkdd/Flickr
For many countries, damages and losses related to transport are a significant proportion of the economic impacts of disasters, often more than destruction to housing and agricult+ure in value terms. For example, a fiscal disaster risk assessment in Sri Lanka highlighted that over 1/3 of all damages and losses over the past 15 years were to the transport network. In addition, climate change increases the damages and losses.
 
In the Kyrgyz Republic, where 96% of all cargo travels by road, any disaster-related disruptions to the road network would have severe repercussions on the economy. The Minister of Transport and Roads, Mr. Zhamshitbek Kalilov, is charged with protecting these systems from all kinds of natural hazards, from avalanches to floods.
 
Working to support country officials, like Mr. Kalilov, is why the World Bank Resilient Transport Community of Practice (CoP) and the Disaster Risk Management Hub of the Global Facility for Disaster Reduction and Recovery (GFDRR) organized the Technical Knowledge Exchange on Resilient Transport on May 8-12.

Held in Tokyo, the week-long exchange brought together World Bank clients and teams from 16 countries across all regions to share concepts and practices on resilient transport, including systems planning, engineering and design, asset management, and contingency programming. The exchange drew upon the experience of several countries and international experts who showcased innovative approaches and practical advice on how to address risk at every phase of the infrastructure life-cycle.

How can conflict-affected cities become better hosts to refugees? The case of Afghanistan

Ede Ijjasz-Vasquez's picture
Like many other developing countries, Afghanistan is urbanizing rapidly. Today, a quarter of the country’s over 30 million people live in urban areas, with many more moving to cities to find jobs and lead better lives.

Unlike many other places, though, cities in Afghanistan face an added, complex layer of challenge—conflict.

In Afghanistan, conflict is a major driver of migration into cities. Instability in large areas of the country is forcing refugees and internally displaced people into cities—particularly the capital city of Kabul. The thing is: Kabul doesn’t yet have adequate infrastructure and capacity to effectively host these “newcomers.”

What can be done?

To help Afghan cities better address the “3-way challenge” of urbanization, conflict, and forced displacement, the World Bank is working on a series of projects that aim to:
  • Provide basic services to selected—mostly informal—neighborhoods in Kabul, such as roads, sanitation, water, and lighting;
  • Support Kabul to improve its municipal finance management systems;
  • Support the institutional and policy framework for urban development in Afghanistan;
  • Strengthen city planning, management and service delivery in five provincial capital cities.

In this video, you will learn more from World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Practice Manager Catalina Marulanda on how cities and communities in Afghanistan are building up their capacity and resilience to better host refugees and other displaced populations.

Ukraine: How international partnerships are contributing to the development of transportation infrastructure

Yuriy Husyev's picture


Photo: Roberto Maldeno | Flickr Creative Commons

Read this blog in Ukrainian

Infrastructure in Ukraine, Europe’s largest country, is extremely underdeveloped. Without significant investment, it cannot support the existing or future needs of our economy or population. The reasons are many: decades of mismanagement under Soviet rule, economic crisis, and more recently, the conflict in the Donbass. Given that these constraints go beyond a simple lack of funding, our government is partnering with the Global Infrastructure Facility (GIF), as well as other international partners such as the European Bank for Reconstruction and Development (EBRD) and the World Bank.

Preparing for the future of logistics - the Singapore way

Yin Yin Lam's picture
Photo: Sarah Starkweather/Flickr
The government of Singapore recently outlined its vision for the country's future, describing how different sectors could harness technology, innovation and mega-trends in order to take the city-state to the next level. This approach includes a dedicated Industry Transformation Map for the logistics sector, which accounts for 7.7% of Singapore's GDP and over 8% of jobs. Logistics is also understood as a crucial enabler for other significant parts of the economy, such as manufacturing and trade.

How is Singapore anticipating the transformation of logistics?

Singapore has been considered a major logistics hub for quite some time, and is currently ranked first in Asia according to the Word Bank’s Logistics Performance Index. The sector, however, is experiencing significant transformations such as the rise of digitally enabled logistics services, and the emergence of new delivery capabilities (autonomous vehicles, 3D printing).

The Industry Transformation Map (ITM) will help Singaporean logistics keep its competitive edge in this rapidly evolving context, and aims to achieve a value-added of S$8.3billion (US$6 billion) by 2020. In particular, the ITM intends to strengthen innovation, productivity, as well as talent development across the logistics sector—including by leveraging trends such as artificial intelligence and collaborative robotics.

Women on the march! Two decades of gender inclusion in rural roads in Peru

Ramon Munoz-Raskin's picture
Also available in: Español
 
 
Women maintaining roads? As their job? Until recently, the idea was pretty much unfathomable in many countries. But in Peru, it isn’t. Since 2001, the Peruvian government and the World Bank have been working hand in hand to ensure female workers can play an active role in the routine maintenance of rural roads. This is part of a broader effort to reduce the gender gap in rural areas, and to improve women’s access to social and economic opportunities.

Over the last two decades, a series of ambitious projects have allowed the rehabilitation 30,000 km of rural roads, and supported maintenance activities along 50,000 km. This type of large-scale road projects has created significant economic and employment opportunities for local communities, and this is why we wanted to make sure women could get their share. To make this happen, we organized trainings, developed specific programs that would improve women’s access to resources, and worked to eliminate the barriers that disadvantaged women (e.g. requirements related to literacy or previous construction experience). The result? In 2013, female participation in rural road maintenance microenterprises reached 27% during the Peru Decentralized Rural Transport Project.

Local communities combat climate change in Bangladesh

Shilpa Banerji's picture
Mahfuzul Hasan Bhuiyan/World Bank
Bangladesh is among the most vulnerable countries to flooding and climate change impacts. Photo Credit: 
Mahfuzul Hasan Bhuiyan/World Bank

How can a country vulnerable to natural disasters mitigate the effects of climate change? In Bangladesh, resilient communities have shown that by using local solutions it is possible to combat different types of climate change impacting different parts of the country.
 
Every year, flash floods and drought affect the north and north-west regions. Drinking water becomes scarce, land becomes barren and people struggle to find shelter for themselves and their livestock. In the coastal districts, excessive saline makes it impossible to farm and fish.
 
The Community Climate Change Project (CCCP) has awarded grants to around 41 NGOs to address salinity, flood and drought-prone areas. With the help from local NGOs, communities innovated simple solutions to cope up with changing climate and earn a better living benefiting at least 40,000 people in the most vulnerable districts.
 
Raising the plinths of their homes in clusters has helped more than 15,000 families escape floods, and they continued to earn their livelihoods by planting vegetables and rearing goats on raised ground. Vermicomposting has also helped to increase crop yields. In the saline affected areas, many farmers have started to cultivate salinity tolerant crabs with women raising their income level by earning an additional BDT 1500 a month from saline tolerant mud crab culture in high saline areas.
 
Watch how communities use these three solutions to tackle climate change impacts.

What is the first step for organizing Peru’s cities?

Zoe Elena Trohanis's picture

Traffic Jam in Lima Peru

My job brought me and my family to Lima, Peru 11 months ago. In case you have never visited Lima before, Lima is in many ways, a lovely city – it has fantastic views of the Pacific Ocean (you can surf right from the local beaches), great food, and vibrant neighborhoods, including a historic city center with Spanish architecture and churches. On the other hand, Lima is also know for its terrible traffic, unplanned urban growth, and informality.

As an urban development specialist, I can’t help but wonder how Lima could be better organized so residents can better enjoy all of the services and amenities the city has to offer. Is it possible?


Pages