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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.

One small step for international air transport, one giant leap for Tuvalu

Nora Weisskopf's picture
Funafuti International Airport (FUN), Tuvalu. Photo: Deviyani Laxmi Dixit/World bank


It’s not often that Bank staff members help make history – but we did by assisting Tuvalu in becoming the 192nd member of the International Civil Aviation Organization (ICAO).

Created in 1944, the ICAO is a UN organization that sets standards and regulations for civil aviation. ICAO membership is important for Tuvalu, as it is a key prerequisite for the development of international air services.

How can we enhance competition in bus passenger urban transport?

Shomik Mehndiratta's picture
Photo: EMBARQ Brasil/Flickr

Também disponível em português.

While bus services are often planned and coordinated by public authorities, many cities delegate day-to-day operations to private companies under a concession contract. Local government agencies usually set fares and routes; private operators, on the other hand, are responsible for hiring drivers, running services, maintaining the bus fleet, etc. Within this general framework, the specific terms and scope of the contract vary widely depending on the local context.

Bus concessions are multimillion-dollar contracts that directly affect the lives of countless passengers every day. When done right, they can foster vigorous competition between bidders, improve services, lower costs, and generate a consistent cash flow. However, too often the concessions do not deliver on their promise and there is a perception across much of Latin America that authorities have been unable to manage these processes to maximize public benefits.

As several Latin American cities are getting ready to renew their bus concessions—including major urban centers like Bogotá, Santiago de Chile, and São Paulo—now is a good time to look back on what has worked, what has not, and think about ways to improve these arrangements going forward.

Improving Agricultural Systems and Raising Prosperity in Rural Bhutan

Izabela Leao's picture
Tara Nidhi, farmer and beneficiary of the Remote Rural Communities Development Project
Tara Nidhi, farmer and beneficiary
of the Remote Rural Communities
Development Project (RRCDP) in Bhutan.
Photo Credit: Izabela Leao/World Bank

“I never thought I would see a road passing by my house in this lifetime,” says Tara Nidhi, a 70-year old farmer who lives in a remote community of Samtse Dzongkhag in Southwest Bhutan. A beneficiary of the Remote Rural Communities Development Project (RRCDP), he and his family have benefitted from the construction of a new farm road and protection from landslides through RRCDP support – a project that promotes the increasing of agricultural productivity and development of communities’ access to markets, irrigation, agricultural technologies, and community infrastructure in 26 Gewogs (village groups) under six Dzongkhags (districts) in Bhutan: Chhukha, Dagana, Haa, Samtse, Trongsa, and Wanduephodrang.

Driving Prosperity through Access to Rural Roads

Coming to completion in May 2018, RRCDP has improved road access to markets to at least 11 project Chiwogs (hamlets) in Samtse and Trongsa Dzongkhags – building 22.9 kilometers of farm roads and benefitting about 299 households. With the construction of new farm roads, the most commonly marketed agricultural and livestock products amongst farmers in project areas have been cardamom, vegetables, butter, cheese, and citrus, and to a lesser extent, rice, potatoes, and eggs. Additionally, beneficiaries have also reported a significant reduction in the time of travel between their households and markets – up to 8 hours in some cases! The majority of the Bhutanese population live in remote rural areas – hours, sometimes days of walking from the nearest road. They walk their children through dense forests and rivers to reach schools and health clinics; they carry their agricultural and livestock products to nearby markets on their backs – an average load of 30kg. A horse carrying a 50kg load costs approximately Nu.5 per kilogram.

Now, with road accessibility, farmers use pick-up trucks at the cost of Nu.2 per kilogram. After a RRCDP farm road construction in Samtse, for example, four households bought pick-up trucks and ten individuals bought motorcycles – mainly benefitting the transport of cardamom. Better road accessibility through RRCDP have also fostered the construction of concrete flush toilets outside households and the construction of new concrete-built homes, as well as the expansion of irrigation schemes. Finally, road accessibility has also impacted social dynamics in rural areas benefitted by the project. While in the past mostly men would go to the nearest town markets on their own, today, all family members, including women and children can go to the market in the morning and return to their homes in the evening. Some women have even reported that they are learning to drive.[1]

The project has also supported beneficiaries in 88 Chiwogs with access to community and marketing infrastructure, such as power tiller tracks, power tiller machinery, and food bridges – with a total of 3,597 households benefitted. In Norgaygang Gewog, for example, with support from the project, the construction of 4 kilometers of power tiller track in 2016, has brought multiple benefits to the community, such as easier access to schools and healthcare in case of emergency.

Strategies that work: New South Wales leads infrastructure development in Australia

Mar Beltran's picture


Photo: Dylan's World / Flickr Creative Commons

A decade before the financial crisis, Australia was a bastion of infrastructure successes. The country’s four major airports (Melbourne, Perth, Brisbane and Sydney) were privatized. Numerous greenfield projects were also launched, for example, extensive highway construction, and new projects were continually added to the pipeline.
 
Some of these new projects, however, faced significant difficulties: some were constructed without robust performance data, leading to overambitious forecasting and overaggressive financial structures. In part, this led Australia to suffer multiple high-profile defaults and brought the country’s infrastructure project pipeline to a halt.
 
But, today, Australia is displaying signs of promise once again. And one state, in particular, is among the developed world’s GDP growth outliers: New South Wales (NSW). The state’s economic growth has reached 3.5%, outstripping the country’s average rate of 2.8%, and even the G20 average (which stands at 3%). As such, NSW’s infrastructure model has likely had a multiplier effect on economic activity—and has been identified as a potential playbook for other jurisdictions.

Zero docks: what we learnt about dockless bike-sharing during #TTDC2018

Leonardo Canon Rubiano's picture
Dockless bikes typically sport bright colors that make them easy to identify.
Photo: Montgomery County/Flickr

How can we harness the digital economy to make mobility more sustainable? This question was the main focus of this year’s Transforming Transportation conference, which brought together some of most creative and innovative thinkers in the world of mobility. One of them was Davis Wang, CEO of Mobike, a Chinese startup that pioneered the development of dockless bike-sharing and is now present in more than 200 cities across 12 countries. In his remarks, Wang raised a number of interesting points and inspired me to continue the conversation on the future of dockless bike-share systems and their potential as a new form of urban transport.

What exactly is dockless bike-sharing (DBS)?

Introduced in Beijing just under two years ago, dockless bike-share has been spreading rapidly across the world, with Mobike and three other companies entering the Washington, D.C. market in September 2017.

As their name indicates, the main feature that distinguishes “dockless” or “free-floating” systems from traditional bike-share is that riders can pick up and drop off the bicycles anywhere on the street rather than at a fixed station.

This is made possible by a small connected device fitted on each bike that allows users to locate and unlock the nearest bike with their smartphone in a matter of seconds—yet another new derivative of the “internet of things” revolution!

Transport is not gender-neutral

Karla Gonzalez Carvajal's picture

Transport is not gender-neutral. This was the key message that came out of a high-level gender discussion co-hosted by the World Bank and the World Resources Institute during the recent Transforming Transportation 2018 conference, which was held in Washington DC between January 11-12, 2018. This was the first time in the 15-year history of this annual event that a plenary session looked specifically at the gender dimensions of transport.
 
Women represent the largest share of public transport users around the world, yet they face many barriers that limit their mobility. The numbers speak for themselves. Some 80% of women are afraid of being harassed while using public transport. In developing countries, safety concerns and limited access to transport reducing the probability of women participating in the labor market by 16.5%, with serious consequences on the economy: the global GDP could grow by an additional $5.8 trillion if the gender gap in male and female labor force participation is decreased by 25% by 2025 (International Labour Organization). Women and men have different mobility needs and patterns, yet transport policies for most countries remain unrelentingly gender-blind.
 
Female participation in the transport sector—as operators, drivers, engineers, and leaders—remains low. According to Harvard Business Review, “women make up 20% of engineering graduates, but nearly 40% of them either quit or never enter the profession.” As a result, the transport industry remains heavily male-dominated, which only makes it harder for women service users to make themselves heard, and limits incentives for the sector to become more inclusive.
 
The gender plenary at Transforming Transportation brought together five women and two men on the panel to discuss these issues and highlight practical solutions used in their work to ensure inclusive transport.

How to capture public life in public spaces?

Fen Wei's picture
Photo credit: Lois Goh/ World Bank
Urbanization and economic growth go hand in hand.  Cities are turning into centers of attraction in developing countries and their population is rising constantly. In such cities, we often see in a city a mix of old and new, slow and fast: Street vendors hawking their wares by luxury shopping malls; highways segmentizing parks and walkways; high-rise crowding out traditional neighborhoods, etc. However, we do not often see a well-balanced mix that serves all urban dwellers with a wide array of needs, economically and socially.
 
What are the ingredients of a good urban life, or rather, what does it take for a city to make the public happy? The answer to this is multifaceted. Cities need to be accessible, vibrant, and create safe public spaces to meet public needs.
 
As UN-Habitat’s Charter of Public Space states, public spaces are a key element of individual and social well-being, the places of a community’s collective life, particularly in situations of poverty and limited public resources, such as those in the developing countries. The Charter also highlights that participation of citizens and in particular of communities of residents is of crucial importance for the maintenance and management of public spaces. While there might be no objection to this statement, it is also true that it has been easily overlooked, especially in developing countries, for the sake of “economic efficiency.”

The high toll of traffic injuries in Central Asia: unacceptable and preventable

Aliya Karakulova's picture

Did you know that in Kazakhstan we live in the country with the deadliest roads? Every year, 3,000 people die on roads in Kazakhstan, and over 30,000 are injured. Imagine if an airplane crashed every month! Would you fly?

We are 11 times more likely to die in a traffic accident in Kazakhstan than in Norway. Indeed, the numbers for road deaths are high in all Central Asian countries.

The High Toll of Traffic Injuries in Central Asia
Source: WHO, 2013


Globally, road traffic injuries are the leading cause of death among people aged between 15 and 29 years. Not cancer, not heart diseases, and not wars.

Life changing injuries and deaths affect countries in terms of health care and economic costs – the annual economic loss of road deaths in Central Asian countries is estimated at around 3-4% of GDP.

But beyond this monetary value, lies a person’s life. 

Colombia: the roads more traveled

Philippe Neves's picture

Also available in Español​


Photo: Dominic Chavez / International Finance Corporation

In the early 1990s, Colombia’s road infrastructure was a maze of poorly maintained roads and bad highways. Difficult geography—the Pacific coast jungle and the Andes branching out into three chains—made it harder to improve road conditions and connect isolated communities. Conflict, corruption, and short-term political priorities contributed to the problems plaguing Colombia’s road system. But just as influential were the problems with the nation’s existing concession contracts that had wrong incentives, created opportunities for renegotiating signed contracts, and assigned unproportioned demand risk to the Government of Colombia.


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