Transport & Digital Development Snapshots Urban Mass Transit: A Lifeline for the World’s Growing Cities Authors: Georges Bianco Darido, Joanna Charlotte Moody As developing countries continue to urbanize, cities are What have we done so far? increasingly important engines of economic development. The WBG’s experience with urban mass transit projects The challenge for many developing cities is to achieve eco- goes back to the 1970s with the rehabilitation or extension nomic growth that is also equitable, inclusive, and sustain- of existing systems, the procurement of rolling stock (trains able. Achieving this vision for prosperous and livable cit- and buses) and equipment, and support for studies and re- ies will require transport policies and systems that deliver forms. In the past decade alone, the WBG’s has advised or sustainable mobility for all through accessibility, efficiency, financed more than 30 new mass transit projects (rail-based safety and appropriate environmental considerations. and bus-based) in more than 20 countries in all regions of the world, including the following: Urban mobility enables cities and their residents to flourish by providing universal accessibility to jobs, services, mar- kets, and other opportunities that enhance quality of life. • Bus Rapid Transit projects of varying capacities and de- As cities grow, densify, and become congested, high-quality signs in Argentina, Bangladesh, Brazil, Colombia, China, public transport is essential for achieving sustainable mo- India, Kenya, Lebanon, Mexico, Nigeria, Pakistan, Peru, bility and supporting economic development for all resi- Philippines, Senegal, Tanzania, and Vietnam. dents. Lower-income urban residents rely disproportionally on public transport and non-motorized transport (walking Key facts and biking) for their daily travel needs. Without fast, secure, 30 + and affordable public transport, many people are forced new in more than 20 to spend more time and limited income on commuting, mass transit countries in all re- or greatly limit their job options and other opportunities. projects gions of the world Moreover, urban roads are often over-used by private au- tomobiles and motorized two-wheelers to the detriment of public transport and non-motorized modes, resulting in ex- • Urban Rail projects in Latin America (Bogotá, Colombia; cessive congestion, road injuries and fatalities, air and noise Quito, Ecuador; Lima, Peru; Santiago, Chile; and Rio de pollution, global emissions, and other negative externalities. Janeiro, São Paulo, and Salvador, Brazil), India (Mumbai), and China (Nanchang, Kunming, and Zhengzhou). The Therefore, dense urban areas and high-demand corridors International Bank for Reconstruction and Development often require rapid transit or mass transit solutions—such (IBRD) support has included advisory and financing for as urban rail (metro, commuter rail), light rail transit (LRT), studies, civil works, equipment, and rolling stock. Addi- or bus rapid transit (BRT)—to provide high-capacity trans- tionally, the International Finance Corporation (IFC) has port on exclusive rights-of way in a safe, clean, and afford- helped to structure, finance and mobilize private sector able manner. As cities and regions continue to grow and financing for projects in Turkey (Izmir and Istanbul), In- densify, increasing travel demand often necessitates the dia (Chennai), and the Philippines (Manila). The Multi- development of projects in cities and regions with little or lateral Investment Guarantee Agency (MIGA) also pro- no experience in this area. vided Non-Honoring of Sovereign Financial Obligations guarantees for Panama City Metro’s Line 1 and urban rail projects in Izmir and Istanbul. Figure: Snapshot of World Bank Group’s Experience in 4. The project design process should also include sufficient Urban Rail Projects, 2007-2017 flexibility to ensure solutions that are acceptable in the Panama City, Panama: local context, implementable, and operationally sustain- • Credit Improvement Guarantee (US$ 320 M) (MIGA) PANAMA able in the long-term; Panama City Bogotá, Colombia: • Financing for studies �(US$ 25 M) • Advisory support on procurement models COLOMBIA Bogotá Salvador (Bahia), Brazil: • Financing infrastructure and consulting services (US$ 118 M) 5. Rapid transit projects are not only about building in- Quito with new sources of financing, institutional structures, and value engineering ECUADOR frastructure and operating vehicles—they should be Quito, Ecuador: PERU BRAZIL planned and designed as opportunities to support ex- • Financing for civil works �(US$ 205 M) • Alternative source of funding Lima Salvador isting and future socio-economic activities in the region, to build internal capacity, and improvement of local op- Lima, Peru: • Financing for civil works (US$ 300 M) • Advisory support on land value capture, CHILE São Paulo Rio de Janeiro erators. managing procurement, and integration Rio de Janeiro, Brazil: with other modes • Financing of rolling stock (US$ 811 M) Santiago • Advisory support for land value capture, intermodal integration, and operations contract monitoring and regulation Santiago, Chile: IBRD 43471 | FEBRUARY 2018 This map was produced by the • Evaluation of alternative project delivery models São Paulo, Brazil: • Financing of civil works and equipment (US$ 1,696 M) Where can we go from here? Urban rapid or mass transit projects are a public good, cap- Cartography Unit of the World Bank Group. The boundaries, • Financing of public contribution to PPP (Line 4) colors, denominations and any other information shown on this • Advisory support for evaluation of private initiatives and map do not imply, on the part of the World Bank Group, any project definition for Lines 6 and 18 and inter-city train ital-intensive and long-lived. Therefore, it is important to judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. plan, implement, and operate these systems with a good Zhengzhou, China: • Financing for civil works (US$ 250 M) understanding of the risks and returns over the life of the Istanbul, Turkey: • Municipal financing for civil and electro- mechanical works for metro lines M4 • Advisory support on land value capture, multimodal integration, and institutional investment, especially from a socio-economic perspective. (€ 50 M) and M7 (€ 65 M) (IFC) capacity-building If not well planned or implemented, these projects can Nanchang, China: Istanbul • Financing for civil works (US$ 250 M) • Advisory support on land value capture, become a financial burden (subsidies), or can lead to unin- multimodal integration, institutional Izmir TURKEY Zhengzhou CHINA capacity building tended consequences or opportunity costs. Nanchang Kumning, China: Izmir, Turkey: • Financing for civil works (US$ 300 M) • Municipal financing for civil works and Kunming Based on its extensive sector experience, independence • Advisory support on project studies, equipment for two tramway lines and social and environmental impacts, and rolling stock for light rail network INDIA institutional capacity (US$ 225 M) (IFC) • Advisory assistance with stakeholder consultation Mumbai from commercial interests, and unbiased view of different Manila Chennai PHILIPPINES Manila, Philippines: • Advisory support on PPP modes and technologies, the WBG can serve as a finan- Mumbai, India: cier, trusted advisor, or honest broker in any phase of the • Financing for civil works and equipment structuring (IFC) (US$ 670 M in two phases) • Advisory support on inter-institutional coordination project development process. The WBG has worked with IBRD 43470 | FEBRUARY 2018 Chennai, India: • Advisory support on PPP structuring (IFC) numerous clients and Non-Governmental Organizations to develop guidance on mass transit development and asso- This map was produced by the Cartography Unit of the World Bank Group. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of the World Bank Group, any ciated reforms. Latest in a line of experiential learning, is judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. the 2018 Urban Rail Development Handbook (Pulido, Dari- Mass transit projects are usually megaprojects by their size, do, Munoz-Raskin and Moody) which shares good practices complexity and importance. The knowledge gained from and recommendations for decision-makers to improve the the WBG experience suggest the following main lessons for planning, design, implementation and operations. While developing urban rapid or mass transit projects: several chapters are applicable to the planning or design of any urban mass transit project, other chapters are focused 1. Successful implementation requires strong political and on specific aspects and characteristics of urban rail projects. technical champions, as well as stakeholder engagement and comprehensive communications strategies. 2. Metropolitan transport governance and coordination, Experts especially on planning, funding, and fare policies, are key to ensuring the availability, accessibility, affordabil- ity, and acceptability of services; 3. The projects cannot be developed in isolation and must be part of a broader urban mobility and land use Georges Bianco Arturo Ardila Leonardo Canon strategy, institutional or sector reform process, and a Darido Gomez Rubiano multi-modal, hierarchically integrated transit system; For more information, please visit Internal WBG Link http://urbanmobility/