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Want successful urban transport mega-projects? Here are seven things you should keep in mind

Bianca Bianchi Alves's picture


In 2002, Sao Paulo’s embarked in one of the most transformative transport projects of the decade: the construction of Metro Line 4. The new line had big ambitions: it was meant to significantly improve the commuting experience, better connect the south and western regions of the Sao Paulo Metropolitan Region (SPMR) to the center, change the metro system from a radial to a flexible network, and interconnect all transport modes, including buses, suburban trains (CPTM), bicycles, as well as existing and future metro lines.

Line 4 was also the first metro project in Brazil to be designed as a Public-Private Partnership, whereby operation and maintenance (O&M) was concessioned to a private company for 30 years. The project was segmented into 2 construction phases, both of which were technically and financially supported by the World Bank from 2002.

When finished, Metro Line 4 will feature a total of 11 stations along a 14.4-km alignment, 29 trains in operation, four integrated bus terminals, and one dedicated train yard. It will carry nearly 1 million passengers per day. Since the opening of the first segment in 2010, the line has experienced high passenger traffic and allowed for a significant reduction in journey times. In 2012, Line 4 even featured among the 100 most innovative infrastructure projects in the world.

A new station was inaugurated just a few weeks ago, and the line is now just one station away from completion. Once the whole project is operational by 2020, aha resident of Vila Sonia in the western part of the city will need only 20 minutes to reach Luz station at the opposite side of the city, compared to one hour in 2002.Today they can already reach it in 32 minutes!

Now that the Line 4 odyssey has almost concluded, it can teach us a number of valuable lessons about what it takes to implement such complex infrastructure projects in a dense urban area like Sao Paulo.

Transport and climate change: Putting Argentina’s resilience to the test

Verónica Raffo's picture
Also available in: Spanish


Would you imagine having to evacuate your village by boat because the only road that takes you to your school and brings the goods is flooded?

In February 2018, the fiction became reality for some residents in the province of Salta, northern Argentina, after heavy rains caused the Bermejo and Pilcomayo river to overflow. The flooding resulted in one fatality, required the evacuation of hundreds of residents, and washed a segment of Provincial Route 54, leaving the village of Santa Victoria del Este completely stranded.

Similarly, a segment of National Route 5 in one of the main corridors of Mercosur has been impassable for more than a year because the level of the Picassa lagoon keeps rising due to extreme rainfall and lack of coordination among provinces on how to deal with excess water flows. The expansion of the lagoon is forcing 4,000 vehicles a day to make a 165-km detour, and adds one transit day for the 1,560 freight trains running every year between Buenos Aires and Mendoza. The flooding is dragging the economy behind and inflating already high logistics costs.

As a matter of fact, a recent World Bank study put the cost of damages and disruptions like these at an estimated 0.34% of GDP a year for riverine flooding, plus 0.32% of the GDP for urban flooding.

To address these risks, Argentina’s Ministry of Transport started a dialogue with the World Bank to explore ways of reducing the vulnerability of the network.

Addressing the risks from climate change in performance-based contracts

Chris Bennett's picture


Output and performance based road contracts (OPRC) is a contracting modality that is increasingly being used to help manage roads. Unlike traditional contracts, where the owners define what is to be done, and oftentimes how to do it, OPRC contracts define the outcome that the owners want to achieve, and the contractor is responsible to meet those outcomes. Performance is measured against a series of key performance indicators (KPIs) or service levels.
 
Critical to the success of any OPRC contract is the assignment of risk between parties. Climate change has major implications for OPRC contracts because it affects the risk exposure of both parties. With funding from the Public Private Infrastructure Advisory Facility (PPIAF), a new analysis considered how to incorporate climate change risks into OPRC contracts.
 
What’s Happening Right Now?
 
Without clear expectations around climate risk, neither the asset owner nor the companies bidding for performance contracts will adequately address the risks. Bidders cannot be held accountable for risks that are not specifically cited or linked with performance criteria.
 
At present, climate change risks are generally carried by the asset owner through the Force Majeure provisions of the contract, and treated as ‘unforeseen’ events, with repair costs reimbursed to the contractor. This impacts the overall cost of the OPRC, and where extreme weather events are becoming common-place, reduces the efficacy of OPRC as a contracting modality. The most pressing issues challenging stakeholders during each phase of development are summarized in this chart.

Three ways governments can create the conditions for successful PPPs

Lincoln Flor's picture
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A healthy Public-Private Partnership (PPP) has several defining features: strong competition, bankability with low financial costs, lower risk of renegotiations, secure value for money, and efficiency gains.

What does it take for countries to develop PPPs that can fit this description? Why is it that some countries such as India, Colombia, Turkey, and Egypt have been able to develop strong and successful PPP programs while others have not been able to award any projects under special-purpose PPP legislations? 

Our experience with infrastructure PPPs across the globe suggests that three institutional pillars are needed to increase the probability of PPP success.

Thank goodness, we had an extra bridge in stock!

Malaika Becoulet's picture
Credit: Joshua Stevens/NASA Earth Observatory
On October 4, 2016, category 4 Hurricane Matthew struck the southern part of Haiti. Strong winds and rain triggered heavy flooding and landslides that resulted in 500 fatalities, along with widespread infrastructure damage and economic loss. The hurricane caused the collapse of the Ladigue Bridge, a vital asset connecting the southern peninsula of Haiti to the capital city and the rest of the country. The collapse left 1.4 million people completely isolated, making it extremely hard to deliver the aid and humanitarian assistance they needed. Overall damage and losses were equivalent to 32% of GDP, with transport accounting for almost a fifth of the total.
 
Haiti is among the countries that are most vulnerable to natural disasters including hurricanes, floods, and earthquakes—the result of a combination of factors that include high exposure to natural hazards, vulnerable infrastructure, environmental degradation, institutional fragility, and a lack of adequate investment in resilience. In Haiti, 80% of people and goods are transported by road. First aid and humanitarian resources, often concentrated in Port-au-Prince, need to transit through congested and sometimes inaccessible roads to reach affected areas. In that context, strengthening and building resilient infrastructure is key.
 
Since 2008, the World Bank has supported the reconstruction of 15 major bridges and stabilized 300 kilometers of roads to enhance the resilience of Haiti’s transport network. One of the most significant innovations that came out of this effort was the adoption of standardized emergency bridges that can be assembled within 2- 3 months from pre-designed and interchangeable components.

Maximizing finance for safe and resilient roads

Daniel Pulido's picture


Around the world, roads remain the dominant mode of transport and are among the most heavily-used types of infrastructure, accounting for about 80% of the distance travelled for individuals and 50% for goods.

Despite this intensive use, the funding available for road maintenance has been inadequate, leaving roads in many countries unsafe and unfit for purpose.

To make matters worse, roads are also very vulnerable to climate and disaster risk: when El Niño hit Peru in 2017, the related flooding damaged about 18% of the Peruvian road network in just one month.

It is no surprise then that roads are the sector that will require the most financing. In fact, the G20 estimates that roads account for more than half of the $15 trillion investment gap in infrastructure through 2040.

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.

Why sustainable mobility matters

Hartwig Schafer's picture
Photo: Mariana Gil/WRI
In the 1960s, the vision of future mobility was people with jet packs and flying cars – we believed these innovations wouldn’t be far off after the moon landing in 1969. Obviously, the reality in 2017 is somewhat different.

Today, we have congestion in cities, rural areas cut off from the rest of the world, and too many people without access to safe, efficient, and green transport. This stifles markets and hinders people from the jobs that will help them escape poverty. Without access to sustainable mobility, it will be much harder—if not impossible— to end poverty and achieve the Sustainable Development Goals (SDGs).

And perhaps the most tragic reality is this: that approximately 1.3 million people die each year in traffic-related incidents. Young people, those between the ages of 15-29, are the most affected by road crashes. This heartbreaking and preventable loss of life should be a clear signal that road safety matters.

At the same time, how we change transport is vitally important and will impact generations to come.

What El Niño has taught us about infrastructure resilience

Irene Portabales González's picture
Also available in: Español
Photo: Ministerio de Defensa del Perú/Flickr
The rains in northern Peru have been 10 times stronger than usual this year, leading to floods, landslides and a declaration of a state of emergency in 10 regions in the country. Together with the human and economic toll, these downpours have inflicted tremendous damage to transport infrastructure with added and serious consequences on people’s lives.

These heavy rains are blamed on El Niño, a natural phenomenon characterized by an unusual warming of the sea surface temperature in the central and eastern equatorial Pacific Ocean. This phenomenon occurs every two to seven years, and lasts about 18 months at a time. El Niño significantly disrupts precipitation and wind patterns, giving rise to extreme weather events around the planet.

In Peru, this translates into rising temperatures along the north coast and intense rainfall, typically shortly before Christmas. That’s also when “huaicos” appear. “Huaico,” a word that comes from the Quechua language (wayq’u), refers to the enormous masses of mud and rocks carried by torrential rains from the Andes into rivers, causing them to overflow. These mudslides result from a combination of several natural factors including heavy rains, steep slopes, scarce vegetation, to name a few. But human factors also come into play and exacerbate their impact. That includes, in particular, the construction of human settlements in flood-prone basins or the absence of a comprehensive approach to disaster risk management.

This year’s floods are said to be comparable to those caused by El Niño in 1997-1998, one of the largest natural disasters in recent history, which claimed the lives of 374 people and caused US$1.2 billion worth of damages (data provided by the Peruvian National Institute of Civil Defense).

In India, this transport engineer is racing toward the future… with German supercars

Shigeyuki Sakaki's picture
Harsh, a civil engineer from Surendranagar, the western State of Gujarat in India, proudly has a collection of supercars recently delivered from Germany. They are all brand new with sleek designs, glossy paint, and fully loaded with state-of-the-art features. One of them is a 600 horse-power monster, another is the first of its kind in India.
 
Without further ado, let's see what he has...

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