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institutional reform

Efficient public transport starts with strong institutions

Sofía Guerrero Gámez's picture
Also available in: Español
Photo: Max Souffriau/Flickr
Over 10 million people now live in the Lima Metropolitan Area, equivalent to about 1/3 of Peru’s total population. As the number of residents and private vehicles continues to rise, getting around this sprawling metropolis is proving increasingly difficult.
 
In fact, Lima’s commuters waste an average 20 days a year due to congestion. Traffic also takes a serious toll on quality of life and the environment. Most importantly, the yearly rate of road fatalities has reached 14 per 100,000 people across Peru, with most instances concentrated in urban areas.
 
The city’s transport woes have been exacerbated by the lack of efficient public transport, which drastically undermines access to jobs and essential services like health or education—especially for the poor—and eats away more than 1.5% of the local GDP.
 
So how can we tackle this and keep Lima moving? As mentioned in one of our previous articles, cities that are striving to build adequate and reliable public transport systems must consider multiple factors simultaneously.  
 
Today, let’s take a closer look at the role of institutions—perhaps one of the most critical pieces of the urban transport puzzle.

Our infrastructure projects can help build many things—including stronger institutions

Pratap Tvgssshrk's picture
Photo: Frederick Noronha/Flickr
Working to finance major infrastructure projects, World Bank teams have seen time and again that the sustainability of investments depends ultimately on the efficiency and capacity of the agencies that manage them. 
 
For that reason, our interventions often have a dual goal: supporting high quality infrastructure, and, at the same time, supporting institutions’ efforts to modernize and become more efficient. That institutional development sometimes comes in the form of stand-alone project components that focus on modernizing processes, governance, and skills. But in other cases, infrastructure investment projects can also provide opportunities to initiate important institutional changes.
 
This is often the case with civil works contracts, and the Tamil Nadu State Road Sector project in India is illustrative of how contracting strategies implemented with Bank support helped a highway agency enhance its implementation capacity, the efficiency of its expenditure, quality of infrastructure, and system sustainability through significantly improved asset management.