Viet Nam Sustainable Urban Transport Program Side event - CTF Trust Fund Committee Meeting May 2015
Viet Nam Context & Challenges
Viet Nam Context & Challenges Ha Noi and Ho Chi Minh City (HCMC) comprise 14 million people - almost 6 million are employed and generate 20 million passenger trips per day, of which over 90% are by private vehicles (ADB 2012). 2-wheelers dominate: 60-65% of trips in Ha Noi & HCMC 4-wheeler population doubled from 2001 to 2006 & still growing! Cultural: public transport is not cool, upgrading to a car & then upgrading to a better car is the objective need to change public behavior Passenger traffic has grown 5.8% annually from 1999 to 2008 and is expected to more than triple from 2008 to 2030 (JICA 2010)
Viet Nam Context & Challenges Rapidly increasing private vehicle ownership and traffic volumes have resulted in over 10,000 annual fatalities in recent years. More than half of traffic fatalities involve persons who are less than 30 years of age. Traffic accidents disproportionately affect the poor and vulnerable users such as pedestrians and motorcyclists. Poorly managed urban transit in Viet Nam s major cities eventually contributes to the decline in the urban environment and social conditions of city dwellers.
Policy Framework Socio-Economic Development Plan 2011-2015: transport sector development is a key to sustaining Viet Nam s socioeconomic growth over the next decade Ha Noi and HCMC Urban Transport Master Plans: to increase public transport usage by 45% 50% by 2020 and reducing dependency on private vehicles
Viet Nam CTF Country Investment Plan (IP) Vietnam CTF IP first endorsed in 2009 and revised in 2013 to reallocate CTF $50 million as additional funding to the Sustainable Urban Transport (SUT) Program SUT program impact: efficient, integrated and sustainable MRT systems within selected districts of Ha Noi and HCMC Source: www.railway-technology.com Sustainable Urban Transport Program - CTF investment USD 150 Million HCMC SUT MRT Line 2 (USD 50 M) Ha Noi SUT Program Metro Line 3 (USD 100 M)
Viet Nam Urban Transport Problem Tree
Sustainable Urban Transport Program Context Improved MRT accessibility (Park &ride, etc.) Feeder bus routes & bus/brt/mrt interchanges Integrated bus & rail ticketing MRT and BRT lines Lower fares Congestion pricing Reduced size of private vehicle fleet Restricted Parking CTF co-financing addresses key problems: Investment increased and leveraged: CTF co-financing for Hanoi leveraged at ~ 16:1; cofinancing for HCMC leveraged at 28:1. Overall: CTF$150 M / total $3+ Billion Improved efficiency of and access to mobility services Expanded capacity development for planning and implementation Raised priority of mobility services and need for modal shift in urban planning
Financing Plan for HCMC SUT ($million) Source Project 1 a Project 2 a Project 3 Total Asian Development Bank 40 500 10 550 KfW 36.4 276.6 0 313 European Investment Bank 0 195 0 195 Clean Technology Fund 0 0 49 b 49 Government 27.9 298.6 6 332.5 Total 104.3 1,270.2 65 1,439.5 Source: ADB project documents Notes: a Project 1 and 2 were approved subsequent to approval of the multi-tranche financing facility. b A project preparation grant of $1 million has been deducted from the overall allocation of $50 million. A loan administration fee of $50,000 is applied for a net effective CTF loan of $48.95 million.
Financing Plan for Ha Noi SUT ($million) Source Metro Rail System (Project 1) Original Financing Additional Financing SUT (Project 2) Amount Asian Development Bank 293.00 0.00 4.20 297.20 Clean Technology Fund - 50.00 48.95 98.95 a Agence Française de Développment 143.00 0.00-143.00 Direction Générale du Trésor 325.00 0.00-325.00 European Investment Bank 95.00 0.00-95.00 Government 221.20 352.6 5.80 579.60 Total 1,077.20 402.6 58.95 1,538.75 Source: ADB project documents Notes: a A project preparation grant of $1 million has been deducted from the overall allocation. A loan administration fee of $50,000 is applied for a net effective CTF loan of $98.95 million.
Viet Nam Preliminary Lessons Learned Making urban transport sustainable is a major challenge changing public behavior is key to long-term success as part of avoid-shift-improve paradigm Integration and connectivity of multiple modes of transport required: rail, bus/brt, 4-wheelers, 2-wheelers, nonmotorized transport Public safety and security are very important Urban rail starts at $1 Billion and goes up: brute force approach to GHG reductions HCMC & Ha Noi SUT program provide retail transport services opportunity for effective gender mainstreaming and indirectly for poverty reduction
Viet Nam Preliminary Lessons Learned Project processing and approvals take time GHG accounting / modeling continues to evolve 2009 estimates were over-optimistic compared to TEEMP model which is considered robust (today at least) Market for electric vehicles is advancing rapidly, e.g., electric bikes and scooters are here, & solar charging is on the horizon.
Priority areas 1. Urban transport 2. Transport and climate change 3. Logistics and crossborder transport 4. Road safety and social sustainability
Measuring sustainability of transport projects Need to look holistically at: Overly simplified approaches such as: Economic effectiveness Social sustainability Environmental sustainability Risk to sustainability or project soundness As opposed to Roads = unsustainable Public transport = sustainable
Developing platforms of cooperation with MDB/IFI partners Monitoring and reporting on sustainability Road safety Climate finance tracking GHG accounting
Roads Railways Air & Water Urban Transport Road Safety ADB Transport Sector Group 200 members 11 Advisory Teams Cross-Border Transport & Logistics Social Sustainability Economic Analysis Governance & Institutional Issues PPPs & Innovative Financing Climate Change and Environment
Viet Nam Sustainable Urban Transport Program Thank you!