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Carolina on my mind: North Carolina’s Innovative Road PPP Financing Mechanism

Cledan Mandri-Perrott's picture
A rendering of the south section of I-77 near
Oaklawn Avenue in Charlotte.
Credit: NCDOT communications

“In my mind, I’m goin’ to Carolina,” sang North Carolina native James Taylor – but he probably wasn’t traveling there on a road funded through a public-private partnership (PPP). That’s because PPPs in the United States are not as prevalent as in other regions of the world. The reasons are varied, but it’s in large part because each state is responsible for setting its own transportation strategy and financing plan. Furthermore, U.S. state and subnational entities have traditionally benefited from an active municipal bond market that has allowed them to access monies from the capital market.

But a recent project in a commuter corridor in North Carolina might change the way people travel around the state.  Based in Charlotte, the largest city, the I-77 is the region’s first transportation PPP. This innovative US$650 million brownfield project combines private sector know-how with an efficient use of public funding structures, and could be a model for other U.S.-based transportation projects. In fact, some of the lessons from this project could also offer a way for other countries to develop public support mechanisms.

Campaign Art: Every day, 500 kids don't make it. But you can save them.

Roxanne Bauer's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

According to World Health Organization figures, 500 children are killed each day in road crashes globally.  In fact, road traffic injury ranks among the top four causes of death for all children over the age of five years.  To raise awareness of this deadly reality, Jean Todt, President of the Fédération Internationale de l’Automobile (FIA), the international motoring federation, and Special Envoy of the UN Secretary General for Road Safety, turned to world renowned film director Luc Besson to deliver a potent message: children face incredible danger when crossing the road!

‘Save Kids Lives’, shows children in the townships of South Africa and in central Paris, France walking to and from school to show that the risks children face are almost universally shared, whether they are due to a lack of safe infrastructure or as a result of heavy traffic. The film is shocking, and may contain images some people find disturbing. But that’s exactly the point, according to Todt, who believes that it will help focus attention on making roads safe for children everywhere.

The film was launched the first week in October to coincide with International Walk to School Day and to support #SaveKidsLives, a UN initiative that calls for action to stop the growing number of road deaths worldwide and for decision makers to prioritize children’s safety.
 
VIDEO: Save Kids Lives

​Lagos’ Bus Rapid Transit System: Decongesting and Depolluting Mega-Cities

Nicolas Peltier-Thiberge's picture
Photo:  Lagos Metropolitan Area Transport Authority (LAMATA)

As Beijing is issuing its first-ever red alert due to record levels of air pollution, it is time for us to reflect on how we can propose cleaner urban transport solutions to large cities in the developing world.
 
The transport sector accounts for 23 percent of energy-related global CO2 emissions, second behind electricity and heat generation. Moreover, transport-related emissions are set to rise from 23 percent to up to 33 percent by 2050.

In Beijing, banning half of the car off the streets (except electric and hybrid vehicles) is one of the most radical measures that the authorities have taken to fight what some observers have called airpocalypse. To compensate, 200 additional buses have been added to the cities’ public transport system. Schools have also been closed and outdoor construction works have been forced to stop. The social and economic costs of airpocalypse are enormous. With particulates levels more than 10 times the recommended levels, there are serious health consequences for Beijing’s 20 million inhabitants.
 
As urbanization continues all over the world, many mega-cities are desperately looking for credible solutions to improve urban transport systems and reduce traffic congestion. Sophisticated but expensive systems like underground subways are economically out-of-reach for many large cities in the developing world. The good news is that there are some excellent alternatives that the World Bank Group and other international partners have been promoting.
 
One of these alternatives is the so-called Bus Rapid Transit (BRT) system. Invented in Latin America and since then spread all over the world, BRTs have a particular relevance for fiscally-constrained, developing nations because of their relatively modest cost but also their dramatic benefits in terms of urban mobility and air pollution reduction. 

How roads support development

Claudia Berg's picture
Rural road. Photo: Curt Carnemark / World Bank

Roads are the arteries through which the economy pulses. By linking producers to markets, workers to jobs, students to school, and the sick to hospitals, roads are vital to any development agenda.  Since 2002, the World Bank has constructed or rehabilitated more than 260,000 km of roads. It lends more for roads than for education, health, and social services combined.  However, while roads bring economic and social benefits, they can also come with social costs such as pollution or deforestation.  The Amazon rainforest is crisscrossed by almost 100,000 km of roads—enough to circle the Earth two and a half times. And the transport sector accounts for about 23 percent of global energy-related carbon dioxide emissions and a significant share of local particle pollution. Such tradeoffs need to be weighed when planning any intervention.

Finding employment for young people of all abilities

Matt Hobson's picture
Young women from family with members with disabilities being taught to use a sewing machine.
India. Photo: © John Isaac / World Bank

Today is the International Day of Persons with Disabilities.
 
In every society globally, unemployment rates for persons with disabilities are higher than for people without disabilities. The International Labor Organization reports that, in some Asia-Pacific countries, the unemployment rate of people living with disabilities is over 80%. 

Saint Petersburg: 3 lessons in public-private partnership implementation

Jeff Delmon's picture
St. Petersburg, Russia
Credit: https://www.flickr.com/photos/kishjar/

The enchanting city of Saint Petersburg, Russia, boasts the canals of Venice, the cathedrals of Paris, the architecture of Stockholm, and the non-stop festival atmosphere of white nights in July and August. It is Russia’s second largest city, with around 4 million people and a bustling economy.  Saint Petersburg has also learned hard-won lessons in public-private partnership (PPP) creation and implementation, including:

Lesson 1: Start with the basics
Saint Petersburg started with very big, very bold PPP projects, like a €6 billion toll road and a €1 billion tunnel, followed by a €1 billion light rail line and a €1.2 billion airport expansion. The toll road and tunnel came to bid in late 2008, mid-financial crisis—leading to Lesson 1a: Timing is everything. But rather than get discouraged, the city restructured the tunnel, flipping it around so that the concessionaire finalized the design first, thereby delaying the search for financing until the markets could recover. The toll road bid process was cancelled and the project broken up (more on this later). The light rail project was also restructured to fit with evolving ridership in the city. The airport, the last project to be launched, was the first to reach financial close, so here we simply note that hard currency revenues and an existing asset and revenue stream are convenient advantages when financial markets are lean.  Lesson 1b: Roll with the punches.

Including persons with disabilities into development: the way forward

Ede Ijjasz-Vasquez's picture
An estimated 15% of the global population, or about 1 billion people, experience some form of disability. Persons with disabilities face many barriers in access to employment, education, services, and are disproportionately affected by poverty. Making sure that everyone can reap the benefits of development, including persons with disabilities, is at the core of the World Bank's mission. On this International Day of Persons with Disabilities, Charlotte McClain-Nhlapo, the World Bank's Global Advisor on Disability, shares insights about current challenges and opportunities for disability-inclusive development, and explains how the institution has been integrating disability into its operations.

Why did the farmer cross the road? To bridge the productivity divide: Guest Post by Sam Asher

This is the sixth in our series of posts by students on the job market this year.
 The productivity of workers in agriculture is generally much lower than in other sectors of the economy (Gollin, Lagakos and Waugh, 2014). This is particularly true in low-income countries, yet these countries generally have the highest shares of the population living in rural areas and working in agriculture (McMillan et al, 2014). So why don’t workers switch jobs into higher productivity (and better paid) occupations? Development economists as far back as Lewis (1954) and Sen (1966) have studied the labor market imperfections that may keep workers in low productivity agriculture despite higher wages elsewhere.

4 concrete ways to move the Philippines’ public-private partnership programs forward

Jesse Ang's picture
Light Rail Transit in Manila, the Philippines
Credit: Ingmar Zahorsky/Flickr

The Philippines has one of the best performing Public-Private Partnership (PPP) programs in Asia. According to the Philippines PPP Center, much more will be done to further improve the country's ambitious PPP program.

Infrastructure building in most countries is driven by the government. China has been the most remarkable infrastructure builder in the world over the last 30 years, and this progress has been driven almost entirely by the government. In the case of the Philippines, government is also in the driver’s seat when it comes to infrastructure development, bringing in the private sector for expertise, capacity, and relevant experience. In most PPPs, project efficiencies increase and sustainability is strengthened with private participation. Though PPPs are not a panacea, and the transactions themselves are complex, the Philippines has chosen to incorporate private sector expertise and resources in various ways. The challenge is to balance public objectives with private need for a return on investment. There has to be appropriate sharing of risks between government and the private sector.

Road safety is an issue of equity for the poor

Bertrand Badré's picture
Street traffic in Kathmandu, Nepal. © Simone D. McCourtie/World Bank


Road safety may not be the first thing that comes to mind when thinking of ending extreme poverty. But poor road safety conditions affect the world’s poorest people the most.
 
Take the case of Africa. While every other region around the globe registered a decline in road fatality rates between 2010 and 2013, Africa’s rate rose. The continent now has the highest regional fatality rate with 27 deaths for every 100,000 people. Low-income countries’ share of global deaths increased from 12% to 16% during the same period. Yet these nations account for only 1% of total global vehicles.


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