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Europe and Central Asia

First-ever Global Conference on Sustainable Transport: What is at stake?

Nancy Vandycke's picture

On November 26, 2016, UN Secretary-General Ban-Ki Moon will convene the first-ever Global Conference on Sustainable Transport, in Ashgabat, Turkmenistan. What is at stake in this capstone two-day event? What fresh developments might it yield, and how might it change the dynamics for transport?
 
The new transport agenda. A number of earlier high-level events—including the UN Climate Action Summit, the OECD/International Transport Forum, and the Habitat III Conference—helped give a long-needed boost to the visibility of transport in the international arena in 2016. The events also helped position transport within the current set of global commitments that include the Sustainable Development Goals, the Paris climate agreement, the Decade of Action on Road Safety, and the Habitat III New Urban Agenda. The forthcoming Ashgabat event will put front and center one simple notion: for the next 15 years, the transport agenda will be framed by that set of global commitments. The commitments define the space within which governments, international organizations, the private sector, and civil society will have to act on transport. And they will dictate the future size and direction of transport funding.
 
This is a paradigm shift. Previously, the transport agenda was defined by the goal of providing access to transport infrastructure. Under the new framework, the international community has committed itself to much more. First, the issue is no longer simply access but equitable access for all. Second, other, equally important objectives have been added, including the efficiency and reliability of mobility services, transport safety, and decarbonization. In sum, the internationally accepted transport agenda concerns more than economic and social development; it is also about being part of the climate change solution.

What can we learn from public-private partnerships in the transport sector in Europe and Central Asia?

Vickram Cuttaree's picture
Private sector investment in Europe and Central Asia (ECA) is quite small, even accounting for the size of the individual countries’ economies. Despite integration within the European Union (EU), ECA countries have not attracted much private sector investment in the transport sector compared to other regions, such as Latin America or South Asia (four times more during 2009-13).
 
Mid-day traffic in Istanbul, Turkey
Mid-day traffic in Istanbul, Turkey

While public-private partnership (PPP) transport investment has been initially driven by countries (such as Poland, Croatia and Hungary) that implemented reforms to join the EU, most of them have not been able to close on transport PPP transactions in the past five years. Now Russia and Turkey are the leaders in the region, as explained below.

What can explain this situation?
A focus on off-balance sheet accounting of PPP projects has dominated transport PPP in EU-member ECA countries in recent years. Off-balance sheet accounting means PPP projects are structured in a way that only annual government payments are accounted for, instead of the total commitment (the assets and liabilities associated with the project). This means that PPP projects end up being large and greenfield (multi-billion dollar investment, typically in new highways), and tend to follow a separate path than for budget-financed projects, based on the assumption that the associated liabilities won’t be accounted for.

Risk allocation between the public and private sectors is driven by accounting treatment. This also results in limited support from governments and very rigid negotiations. It also means that projects are often not able to close or, as a former Minister of Transport said, “We do PPP to build off-balance sheet assets but, in order to reach financial close, assets has to be on our books.”

Getting ready for ICT’s potential to make transport safer and more efficient

Julie Babinard's picture

How relevant is ICT for transport? The emergence of low-cost open-source mapping tools; widespread cellular network coverage in developing countries; declining costs of mobile phone hardware; and increasing Internet use by public agencies have resulted in unprecedented opportunities to support transport planning and management in developing countries.

The problem with rural transport is that it is rural, the solution is in branding

A major constraint with developing and maintaining rural roads is the fact that they are, unfortunately, rural. The areas where they are needed are often difficult to access, logistics become complicated, local contracting capability is limited, engineers are few and far between, and younger engineers especially, are not keen to leave the urban environment.

Air Transportation – Quo Vadis?

Charles E. Schlumberger's picture

For several years, the World Bank, the International Civil Aviation Organization (ICAO), and the air transport industry met annually at a conference discussing issues concerning the air transport sector. The conclusions of these conferences are important as they guide the Bank’s aviation development agenda.

Reliable Supply Chains: An Answer to Competitiveness and Growth Challenges

Monica Alina Mustra's picture

In today’s interconnected world economy, efficient, reliable and cost-effective supply chains have become necessities in global trade. Trading in a timely manner with minimal transaction costs allows a country to expand to overseas markets and improve its overall economic competitiveness. For many countries, however, identifying bottlenecks along a supply chain and then determining which logistics procedures and infrastructure to upgrade can be a challenging feat.

New findings on social and physical mobility bring transport into the spotlight again

Julie Babinard's picture

For those of us anxiously awaiting the new edition of the World Bank’s leading publication, the World Development Report (WDR) each year, this year’s edition does not disappoint.  Credit should be given to the team of the ‘WDR2012: Gender Equality and Development’ team for successfully moving their analysis from skepticism to the elaboration of a sensible analytical framework focused on aspects of gender equa

A road crash changed my life. Join me now to save lives...

Casey Marenge's picture

On the 26th of September 2003 my best friend Jonathan was killed in a car crash in Nairobi, Kenya in East Africa. Jonathan was only 19 years old and had just joined University three weeks prior to the road crash to pursue a degree in information technology. A speeding drunk driver rammed into the vehicle Jonathan was in; causing the car to spin out of control severally. Jonathan along with another friend, were killed on the spot.

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