Islamic Development Bank Group 41 st Annual Meeting Climate Friendly Transport Systems for Inclusive Growth Tyrrell Duncan, Technical Advisor (Transport) Asian Development Bank
Aspects of transport and growth Efficient transport growth Efficient + accessible + affordable + safe transport inclusive growth Efficient + accessible + affordable + safe + climate friendly transport low carbon inclusive growth Size of contribution depends on having conducive policies in other sectors
Directions of change needed for climate friendly, inclusive transport SEGMENT FROM TO WHY Long distance freight Trucks Rail, inland water transport, multimodal Win-win Reduce cost, accidents, GHG Long distance passengers Motor vehicles, buses, air transport Rail Reduce cost, accidents, GHG Urban transport Motor vehicles Mass transit, safe cycling, walking Expand access Reduce cost, time, congestion, accidents, GHG, air pollution Rural transport Limited road access Extend road network/services Expand access Reduce cost, time
Long distance transport: railways
Long distance transport: railways General rationale Lower cost per ton-km and passenger-km, with fewer accidents, lower emissions. Essential for services to run on schedule, with efficient transfers to/from other modes Elements of scope Approved ADB projects Planned ADB projects Track including doubletracking Locomotives and rolling stock Signaling and train control system Telecom Multimodal passenger hubs Institutional reform and commercialization Afghanistan, Bangladesh, Cambodia, India, PRC Azerbaijan, Bangladesh, India, PRC, Mongolia, Myanmar, Uzbekistan, Turkmenistan, Philippines; in dialogue with Pakistan
Long distance transport: multimodal freight hubs General rationale Elements of scope Enable efficient transfers between modes, making multimodal shipment competitive Design, civil works, equipment (may include PPP) Approved ADB projects Planned ADB projects Chongqing logistics project, PRC Inland customs depot proposals, South Asia
Mass transit: bus rapid transit ADB s first BRT project in Lanzhou, PRC $150m loan approved late 2009 for total project of $462m Opened in late 2012, serves 300,000 daily trips Bikeshare for 10,000 bikes along BRT corridor
Mass transit: bus rapid transit General rationale Elements of scope Approved ADB projects Planned ADB projects Cities need affordable quality transit option while still at low/middle income stage Cost effective option for secondary cities System design, including nonmotorized transport Road works, BRT station installation Low carbon buses Automated traffic management system Electronic fare collection Bus management system, bus information system Lanzhou, Yichang, Fuzhou and Ji an (all PRC); Dhaka (Bangladesh); Ulaanbaatar (Mongolia); Vientiane (Lao PDR) Karachi, Lahore and Peshawar (all Pakistan); Astana (Kazakhstan); in dialogue with Philippines
Mass transit opportunities: mass transit/metro and light rail
Mass transit: metro and light rail General rationale Elements of scope Approved ADB projects Planned ADB projects High quality high volume mass transit needed for large, densely populated cities Overall system design Advanced tunneling Track Locomotives and rolling stock Signaling and train control system Telecom Electronic fare collection Train information system for users Metros in Ha Noi, Ho Chi Minh (Viet Nam); Jaipur (India); Tblisi (Georgia) Dhaka metro (Bangladesh); Colombo suburban light rail (Sri Lanka)
India: Prime Minister s Rural Roads Program (PMGSY) 3 ADB projects/programs since 2003 ADB financing of $1.95 billion 49,000 km of engineered rural roads Average per km cost of about $80,000 Connecting 25,000 habitations Maintenance built into contracts
Progress against lending targets of ADB s Sustainable Transport Initiative
$ billion ADB transport lending pipeline, 2016-18 7 6 5 4 3 2 Other Urban Transport Rail Roads 1 0 2015 2016p 2017p 2018p
Obstacles slowing the transition to climate friendly, inclusive transport Railways Inland waterways Logistics Urban transport Rural roads Growing number of financing requests from DMCs Quality/readiness of requests varies Lending expansion requires more attention to making railways efficient, commercial, bankable Few DMC requests Lending expansion requires studies/dialogue to raise awareness and start addressing institutional, policy issues At early stage but DMC interest growing Lending will be modest but value in sharing best practice Growing financing requests but far less than potential DMCs lack specialized capacity to plan/prepare projects Limited number of urban transport experts in ADB, perceptions that projects would be complex/risky DMCs still face rural access constraints, seek financing ADB has expertise, track record, mandate to assist
5 steps for raising the contribution of MDBs to climate friendly transport 1. Donors to fund MDB grant facilities to speed up DMC transition to CF transport. For capacity development, project planning/preparation 2. Partner with centers of excellence to provide high quality, fast response support to DMCs on CF transport 3. For mass transit, initially prioritize secondary cities. Build success record before turning to complex challenges of large cities 4. Develop structured finance models to scale up railways, urban transport bonds + syndicated loans + guarantees + sovereign lending 5. Step up policy dialogue on climate friendly transport to raise awareness of DMCs, donors. MDBs to do individually and through partnerships, including Working Group on Sustainable Transport
See you in Manila for the 5 th ADB Transport Forum 13 15 September 2016 Thank you!