73333 CITIES AT A CROSSROADS: Unlocking the Potential for Green Urban Transport This volume is a product of the staff of the World Bank and Asian Development The material of this publication is copyrighted. Copying and/or transmitting por- Bank. The findings, interpretations, and conclusions expressed in this work do tions or all of this work without permission may be a violation of applicable law. not necessarily reflect the views of the World Bank or its Board of Executive The World Bank and Asian Development Bank encourage dissemination of its work Directors or the governments they represent; the Asian Development Bank or its and will normally grant permission to reproduce portions of the work promptly. Board of Governors or the governments they represent. The World Bank and the Asian Development Bank do not guarantee the accuracy of the data included in For permission to photocopy or reprint any part of this work, please send a re- this work. 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The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank or the Asian Development Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Cities at a Crossroads: Unlocking the Potential for Green Urban Transport Summary: Urban transport determines the shape of a city and its ecologi- Development Bank paper was developed for discussion at the G20 Leaders cal footprint. Many cities in low- and middle-income countries are at a Summit in Los Cabos on June 18-19, 2012. It lays out six aspects, which crossroads. Policy decisions taken now, while car use is still relatively low are most difficult to align, yet, are critical to ensure the sustainability of and cities retain a relatively transit friendly, compact urban form, will affect urban transport systems—visionary leadership, integrated strategy for land how people will live in their cities for many decades into the future. A new use and urban transport, coordination among agencies, domestic capac- paradigm of urban transport can be part of the solution to reversing the ity, adequate cost recovery, and private participation in the operation and deteriorating situation in some cities of developing countries, and sup- construction of urban transport systems. The paper proposes a set of new porting others to embark on a sustainable, low-carbon, green growth path: initiatives for G20 Leaders’ consideration, including the development of developing a city for people rather than cars, and including public/mass an umbrella toolkit to guide policy-makers in charge of urban planning to transport as a major component of the modal structure. Implementing such make transport decisions best suited to their local contexts. a new paradigm can be truly transformational. This joint World Bank/Asian 1 ACKNOWLEDGEMENTS This paper was developed as a joint effort by the World Bank and the Asian Development Bank at the request of the G20 Mexican Presidency for the Leaders’ Summit in Los Cabos on June 18-19, 2012. It features in the Declaration of the G20 Leaders (under the title “Urban mass transport infrastructure in medium and large cities in developing countries). The team was led by Nancy Vandycke (World Bank) and Lloyd Wright (Asian Development Bank), and composed of Marc Juhel, Om Prakash Agarwal, Eva Kolker, Adam Diehl, and Jacqueline Dubow (World Bank), and Ko Sakamoto, Arlene Chavez and Joanna Abaño (Asian Development Bank), under the supervision of Jose Luis Irigoyen (World Bank) and Gil-Hong Kim (Asian Development Bank). Special gratitude is due to staff from the World Bank Transport Sector Board, the Asian Development Bank Urban Transport Practice, and the World Bank Regions who generously provided the team with valuable recommendations and guidance, including Kavita Sethi, Supee Teravaninthorn, Gilles Alfandari, Thierry Desclos, Patricia Veevers- Carter, Shige Sakaki, Binyan Reja, Reindert Westra, Ajay Kumar, Shomik Mehndiratta, Arturo Ardila-Gomez, Holly Krambeck, N. Vijay Jagannathan, Marianne Fay, Zhi Liu, Roger Gorham, Olivier Le Ber, Zaid Nakat, and Georges Bianco Darido. We would like to acknowledge the contributions of other Multilateral Development Banks to this effort, including German Sturzenegger, Camilo Deza, Nestor Roa and Natalia Sanz (IADB); Ralph Olaye and Lise Weidner (AfDB); Dan Green, Witek Szpak and Sofia Keenan (EBRD); Farid Ahmed Khan (IsDB); and Corinne Him (EIB). The support and guidance provided by the G20 Mexican Presidency and the G20 Development Working Group was instrumental to the delivery of this paper and is gratefully acknowledged, with special recognition given to Luis Madrazo, Sergio Guerrero Gomez, Alfonso Ruiz Camargo and Sara Hyunhee Park. 2 TABLE OF CONTENTS Context 5 Vision 9 Conceptual Framework 13 Challenges in Implementation 17 Lack of Visionary Leadership and Political Will 17 Lack of an Integrated Strategy for Land Use and Urban Transport 18 Fragmented Governance 18 Limited Local Capacity 19 Inadequate Cost-Recovery to Cover Long-Run Variable Costs 19 Lack of Private Participation in the Operation and Construction of Urban Transport Systems 20 Recommendations for Global Action 21 Annex 1: World Bank Projects–Lessons Learned 23 Annex 2: Asian Development Bank Projects–Lessons Learned 30 Annex 3: Umbrella Toolkit for Policy-Makers in Charge of Urban Planning 33 3 4 CONTEXT Rapid urbanization is the biggest structural transformation of the 21st Worldwide, the number of mega-cities, with over 10 million people, is century. In developing countries—particularly those transitioning from expected to reach 37 by 2025, over twice as many as in 2000, serving low- to middle-income status—the next few decades will see a dramatic as home to over 600 million residents. The number of large cities (5-10 increase in the share of people living in cities. The world’s urban popula- million people) will have doubled as well, approaching 60, while medium- tion will increase by 2.8 billion between 2010 and 2050.1 Of this, 96 sized cities with a population between one and 5 million will be nearly percent will be located in low- and middle-income countries. This will 600, again twice that of 2000. In the People’s Republic of China2 alone, at bring the world’s urban population to 4 billion. While urbanization began least 220 cities will have over a million residents. By 2025 over 2.1 billion as a developed market phenomenon, it has switched to developing na- people worldwide are expected to call cities of over a million home.3 tions as they rapidly develop. Figure 1: Urbanization Trends in G20 Countries, 1950-2010 100 350 300 80 % increase over 60 years 250 Percent Urbanized 60 200 150 40 100 20 50 0 0 m y lia ly es da a a e n n a o il y a a ia a an e in ric nc tio pa di ic bi re in az do Ita es at rk na ra nt In ex ra Ch Ko rm a Ja Br ra Af ng St on Tu st Ca Fr ge iA M de Ge Au of Ki d h d Ar In ut ud ite Fe ic d So Sa ite Un bl n ia pu Un ss Re Ru 1950 1970 1990 2010 Percent increase 5 Box 1: Africa is the most rapidly urbanizing continent In 1980, residents of cities and towns accounted for 25 per- Figure 2: Africa, Urban Population, 1950-2050 (projected) cent of the population in Africa. By 2040, the urban popula- tion is forecasted to reach one billion—equivalent to the total 60 population in 2009. Urban growth rates, currently 3.4 percent, 50 make Africa the fastest urbanizing continent. Urbanization, if 40 done right, can help development in Africa more than in other 30 regions. However, rapid urbanization can also contribute to so- 20 cial problems. Africa is home to nearly two-thirds of the world’s 10 slum population and over 70% of the urban population suffers 0 from inadequate housing, water supply or sanitation.6 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 Figure 3: Large African Cities and their Contribution to GDP Gross Cell Product in 2005 (1995 US$, billions) Sources: Integrating Urban Planning and Water Management in Sub-Saharan Africa, World Bank, 2012; UN-Habitat 2010, World Development Report 2009, World Bank. 6 The market forces of agglomeration, migration and specialization are Multilateral Development Banks (MDBs) have long been supporting urban driving this urbanization trend. China’s cities continue to absorb about transport. At its peak in 2011, MDB commitments for urban transport 13 million rural residents every year.4 In Sub-Saharan Africa, small and amounted to US$4.3 billion (or 20 percent of total MDB commitments medium-sized towns and villages become incorporated into cities as ex- in transport). Over the past few years, the World Bank Group has been panding urban areas push outward into the peri-urban and rural periph- the largest financier in urban transport, followed by the Inter-American ery. Drawn by the economic lifestyle and social opportunities of urban Development Bank and Asian Development Bank (Figure 4). Regionally, dwelling, the world’s population is migrating from rural areas to cities. urban transport lending has been concentrated in Asia and the Pacific region, and Latin America and the Caribbean region. Cities have become the engine of economic development and global growth. The process of urbanization is integral to evolving towards a higher level of development: no country has become middle-income Figure 4: MDBs Urban Transport Commitments11 without industrializing and urbanizing, and no city has grown to a high- income level without vibrant cities. This explains evidence of a correlation 5,000 between urbanization rates and economic growth.5 For example, Greater Cairo produces 50 percent of Egypt’s GDP. In Brazil, the south-central 4,000 states of Sao Paulo, Rio de Janeiro, and Minas Gerais account for more than 52 percent of the country’s GDP. While the growth potential of urban 3,000 development was initially led by developed countries, is has now become a phenomenon largely driven by low- and middle-income countries. 2,000 Urban development is at the heart of the transition towards a green global 1,000 economy. Cities and towns provide firms and families the benefits of proximity and concentration, but the compactness of activity can also 0 produce social tensions, congestion, and road accidents, which under- 2008 2009 2010 2011 2012 PROJECTED mine the quality of life and economic efficiency. For example, chronic EIB EBRD IsDB IaDB AsDB AfDB WBG traffic congestion is estimated to cost the equivalent of 3 percent of GDP in cities in the Republic of Korea.7 Cities are exerting pressure on fresh water supplies, sewage, the living environment, and public health. Source: MDB Counterparts, by fiscal year Finally, cities are a major contributor to pollution, carbon emissions and energy demand. The green growth paradigm posits that it is possible to This policy paper, prepared by the World Bank with the Asian spatially develop countries and cities to sustain growth while minimizing Development Bank (ADB) at the request of the G20 Mexican Presidency, pollution and environmental impacts.8 outlines key issues and challenges faced by low-income and middle- income countries as they urbanize and proposes a set of global actions Designing efficient urban transport systems is an important factor to support to unlock the green growth agenda. The intended audience is the G20 this transition. Transport enables access to jobs, education, healthcare, and Finance Ministers and Central Bank Governors at the G20 Summit in other social activities. With mobility comes a range of associated economic Los Cabos on June 18-19, 2012. A central theme of the G20 Mexican costs, such as slow average traffic speeds in downtown areas and long com- Presidency is Green Growth. Building on the G20 Summit in Cannes, muting times. In Mexico City, for example, 20 percent of workers spend more and the recommendations of the High-Level Panel on Infrastructure than three hours travelling to and from work each day. It also generates pollu- Investment, the paper lays out the issues associated with urbanization in tion and environmental costs. For example, transport is a major contributor to the broader context of economic development, with access as the crucial CO2 emissions; it is also one of the fastest growing sources of emissions.9 Thus, variable to ensure that urbanization triggers all its productivity-enhancing transport becomes a critical element to embark on a green growth path.10 agglomeration benefits. In this context, urban transport in general, and 7 public/mass transport in particular, if done right, can be truly transforma- This policy paper proposes a set of new initiatives for G20 Leaders’ con- tional: it will determine the shape of a city and its ecological footprint.12 sideration, based on the framework endorsed by the High Level Panel on Infrastructure Investment at the G20 Summit in Cannes. They include: i) The G20, as a thought leader with a global audience, can highlight the im- support for the development of an umbrella toolkit to guide policy-makers portance urban transport at the highest levels of decision making. Concerted in designing and implementing urban transport systems best suited to efforts from some governments and MDBs are already under way to advocate local contexts; ii) creation of a global capacity development facility and a for the vital importance of transportation in the urbanization process and in new leadership program for decision-makers; iii) creation of a global, city- the quest for green growth.13 The paper posits that there is no one-size-fits- level database; and iv) creation of a grant-based financing facility to sup- all approach in urban transport. It lays out critical obstacles to overcome port urban transport project preparation. If endorsed at the global level, for sustainability of urban transport systems, illustrates them with examples these recommendations have the potential to impact sustainable develop- from low- and middle-income countries, and proposes a set of new initiatives ment at scale. However, their implementation will be highly dependent on for global impact. This paper complements the paper commissioned by the the availability of funding support. G20 Mexican Presidency, entitled “Incorporating green growth and sustain- able development policies into structural reform agendas.� 8 VISION There are genuine opportunities for national and city leaders to reduce pollu- Figure 5: Road Sector Energy Consumption by GDP Per Capita tion and carbon emissions, enhance ecosystems, and minimize environmen- tal risks. Efficiently planned and managed urban areas can yield significant 2.0 improvements in the environmental impact of human activity for city dwellers Road sector energy consumption per captia (Ktoe) relative to their rural counterparts. Urban infrastructure, including streets, US railways, and water and sewage systems, comes at a considerably lower cost per unit as urban density rises. Integrated design strategies and innovative 1.5 technologies and policies are available for the construction of buildings and Canada the development of urban energy, water and waste water, facilitating urban Saudi Arabia transport in minimizing pollution and environmental impacts. The problem of congestion and its associated economic costs can be addressed and offset by 1.0 developing efficient public transport systems. UK Japan Iran Transportation is the most difficult area of environmental sustainability 0.5 Singapore due to an ever increasing demand for transport services and its reliance Russia on fossil fuels. As countries have developed, vehicle ownership and trans- portation demand have increased dramatically.14 This has often translated Hong Kong SAR, China Gabon into a positive correlation between energy use in transport and per capita 0.0 incomes. A key driver of this increase has been the expansion of roads.15 0 10,000 20,000 30,000 40,000 50,000 Transportation produces roughly 23 percent of global CO2 emissions from GDP per captia (US $ 2000) fuel combustion. More alarmingly, it is the fastest growing consumer of fossil fuels and the fastest growing source of CO2 emissions.16 With 1 bil- Source: World Bank World Development Indicators lion cars already on the road, road transport accounts for about two-thirds of total transport emissions. and the demand for mobility go hand in hand, energy use in transport gen- With rapid urbanization, energy consumption and carbon emissions from trans- erally increases with per capita income. Evidence shows that the demand port have increased significantly. Cities contribute to 70 percent of energy- for car ownership increases dramatically at annual household income of related carbon emissions. A recent World Bank study of 17 cities in China US$6,000-US$8,000. If historical correlations of economic growth and indicates that energy use and greenhouse gas emissions from urban transport motorization rates continue, an additional 2.3 billion cars will be added by have grown between 4 and 6 percent a year in major cities such as Beijing, 2050, mostly in developing countries. But high levels of economic develop- Shanghai, Guangzhou, and Xian.17 The transportation system is thus at the ment are possible with very large differences in transport energy consump- heart of the transition towards a low-carbon, green growth development path. tion. The high-income Asian countries are a case in point: these countries have reached high levels of per capita income, but maintained very low However, some countries (and cities) have managed to keep energy con- emissions per head. Some European countries also have low energy per sumption and related greenhouse gases (GHG) in road transport low, while capita consumption in road transport relative to their income levels. achieving high levels of economic development.18 Because development 9 These differences among countries/cities can be explained in part by Once cities grow and define their spatial footprint, it is extremely costly strategic vision and supporting policies. Developing countries, which still to reverse their development path. There is built-in inertia in infrastruc- face a large transport infrastructure gap, have the opportunity to choose ture. For example, bridges are expected to last 100 years and more. their transport development path: low-emission transport or car-dependent Urban transport infrastructure also has a long lifetime. This means that, transport. Typically, the smaller the role of the road sector, the lower the once built, urban transport infrastructure is difficult and costly to modify. intensity of GHG emissions. If public transport is included as a major part Specifically, the costs of shifting transport services to low-carbon modes of the modal structure in urban transport, there is no conflict between a are much higher than reducing emissions within the carbon-intensive low emission transport sector and rapid growth or high income. An urban modes. As a result, infrastructure policies to change the existing modal strategy that promotes rail over road and the use of urban mass transit over structure among roads, rail, aviation, and waterways are not easily imple- individual car use can lower the carbon intensity of a city. For example, mented, unless a combination of factors are aligned (see part 4). Hong Kong SAR, China is a prime example of a metropolis that has main- tained high mobility by refocusing on multimodality rather than concentrat- To add to the complexity, transport infrastructure must be made resilient to ing only on the road sector. The integration of road building, mass transit, climate change and natural disasters. The effects of climate change are largely and demand management halved vehicle ownership by 1985, with taxis unpredictable at the local level, though the incidence of extreme events is making up 10 percent of passenger cars, drastically reducing travel times expected to increase. Responding to such uncertainty will require a sequence without making the city less attractive for business.19 Avoiding the conges- of measures, such as improved infrastructure operations, increased resources tion that plagues other mega-cities allows for agglomeration economies in available for maintenance, and enhanced design standards for new infrastruc- an environment of sustained accessibility and mobility. ture construction. Such a response requires more than just additional funding; it requires precautionary policies informed by new decision making tools. 10 Box 2: Republic of Korea – a comprehensive action plan for greening transportation In July 2009, the Republic of Korea adopted a National Strategy for • Promote public transit use by expanding bus rapid transit (BRT) lanes, Green Growth. The Strategy includes specific actions targeting urban expanding the metropolitan-wide railway and completing the second areas, such as the development of eco-cities, green building projects and bullet train line green infrastructure. A set of policy papers were developed to help local • Promote transit-oriented development and green transportation through authorities implement the Strategy, including the following Action Plan for the construction of a Multi-Modal Transfer Center, which entails: Greening Transportation: – Concentrating transport facilities such as railway stations and bus • Implement compact city planning principles through transit-oriented terminals in each multi-modal transfer centre to reduce transferring development, the development of intermodal transit centers in major time/distance by 50% and improve convenience for travelers; railway stations, and the efficient management of densely populated – Connecting public transport services lines within the multi-modal urban centers through cutting-edge technological initiatives, such as transfer centers; the Ubiquitous City or Smart City projects – Developing multi-modal transit centers as multi-functional areas by • Prioritize low carbon infrastructure investments by increasing the share of installing various neighborhood living facilities such as commercial national spending on railway and restricting road investments by 2020 services, cultural facilities and offices; and • Control traffic demand through the expansion of congestion charges – Promoting non-motorized transport (walking and cycling) around multi- in major cities, more efficient road uses (via the Intelligent Transport modal transfer centers by reinforcing regulations including designating Systems) and the introduction of a “Green Traffic Priority Region� to public transport exclusive zones or pedestrian exclusive zones. manage areas of heavy traffic volume • Expand pedestrian and bicycle infrastructure through the development of pedestrian priority districts and the construction of 3,114 km of bicycle lanes by 2018 Sources: Korea Research Institute of Transportation Industries; Kamal-Chaoui, L., et al. (2011), The Implementation of the Korean Green Growth Strategy in Urban Areas, OECD Regional Development Working Papers 2011/02, OECD Publishing; Toward an Integrated Green Transportation System in Korea, Convergence of Technologies and Policies, Korea Transport Institute (2010) 11 12 CONCEPTUAL FRAMEWORK A broader focus in urban transport is needed to improve access. In urban public transport. Such steps can help a city attract trip takers to these transport, building facilities that allow people to move from one point to modes and lower carbon emissions per trip. Cities can also establish another is not enough. It is necessary to think about how conveniently, other forms of incentives to encourage shifts to low-carbon options. safely and affordably people can access jobs, education, healthcare, These incentives include both non-price controls on vehicle ownership recreation, and a host of other needs. However, gaining access is often and use (for example, restrictions on parking or the days vehicles with accompanied by negative externalities, such as emissions, accidents, and certain plate numbers may be utilized), and price controls, such as congestion. The policy objective, then, is to determine how to improve fuel taxes, higher parking fees, and congestion pricing. access while minimizing these externalities. This could happen, for example, if people travelled in shared modes like public transport instead • Improving vehicle use and fuel technology. A city can take a range of of personal vehicles or if people used non-motorized modes rather than measures that directly influence the types of fuels and vehicles being motorized modes of transport.20 used. Transport systems may also be “improved� through the use of Intelligent Transportation Systems (ITS), which provide users with There are several options for a city to minimize negative externalities while information that can lead to more efficient travel. Fuel and propulsion improving access. International experience suggests that there is no easy system strategies may include such technology options as electric and solution to reduce these costs: a comprehensive approach for land use and hybrid vehicles, natural gas vehicles, and biofuel and flex-fuel ve- urban transport is needed. Such an approach will combine three elements:21 hicles. Fuel economy standards are also another form of an “improve� strategy that can lead to significant emission reductions. • Avoiding or reducing the number of journeys taken. This can be achieved by influencing the distribution of activities. For example, This framework captures the important idea of spill-over effects. For better land-use planning and compact city development can lead to example, one agency’s decision to expand a road to improve traffic flow fewer and shorter motorized trips and a larger share of public trans- may thwart another agency’s decision to shift the reliance from personal port use for motorized trips. motor vehicles. Unless such actions are coordinated in a balanced urban development program that includes public transport provision, demand • Shifting to/maintaining more environmentally efficient forms of management, and supporting land-use policies, agencies may make transport. A city can influence the way transport activity is realized decisions that contradict each other. In practice, piecemeal investments through choice of modes. It can improve the quality of relatively low supported by separate agencies have led to an inefficient use of resources emissions modes, such as walking, cycling, and various forms of and unsustainable development patterns. 13 Box 3: Cities will need to find the right mix of options to suit their particular circumstances Strategy Developed Countries Low- and Middle-Income Countries Avoid Reduce vehicle kilometers through Transport Demand Management, Avoid unnecessary generation of vehicle kilometers through land use planning, Information and Communication Technologies (ICT), land use and transport planning localized production, and shorter supply chains Shift Shift from private vehicles to non-motorized transport and public Enable conditions for the lowest-emitting moves (both freight transport, and from aviation to rail, transfer freight from road to rail and and passenger). Ensure attractive alternatives to private water transport vehicles exist Improve Improve existing vehicles. Down-scale vehicle engine size. Increase Ensure future vehicles/fuels are cleaner, encouraging small, penetration of electric vehicles, and carbon-neutral liquid fuels. Use efficient cars. Design innovations for traditional non-motor- Intelligent Transport Systems (ITS). Electrify rails (for both freight and ized transport passengers) Source: UNEP (2011), Green Economy Report, Transport, Investing in Energy and Resource Efficiency As cities develop and expand, one of their priorities should be to ensure While there is a range of public transport options, their costs and benefits that their spatial footprint is supported by a strong public transport net- should be carefully assessed in each local context. Mass rapid transit work. Providing public transport is more expensive than building roads, includes subways, suburban rail, and dedicated busways, which all have but public transport and individual transport are imperfect substitutes: a capacity and performance superior to buses operating on un-segregated in highly congested cities, public transportation becomes necessary for and congested roads. But suburban rail and subways require huge invest- economic reasons, and the environmental benefits can be reaped with no ments in fixed capital, so dedicated busways (plus their more sophisti- or little additional cost.22 Public transportation includes commuter rail, cated relation, “bus rapid transit�) have been gaining popularity. metro rail, light rail, tramway, monorail, bus rapid transit, trolley bus, bus with high level of service, standard bus service and informal mini bus ser- • Bus Rapid Transit, most common in Latin American cities, requires vice. Several large cities have public transport networks which are used rigorous physical planning. These systems generally cost in the range of extensively—the metros in Delhi, Kolkata, and Mumbai, the buses and US$5 million to US$10 million per kilometer to install. It consists of metro in Sao Paulo, among others. Singapore offers another interesting large buses using dedicated lanes and stopping periodically at roadside example of a far-reaching, multi-modal public transit network, which con- stations—rather like an above-ground subway without the rails. With high- sists of mass transit rail, light rapid transit, buses, and taxis. The transit quality precedents established in Bogota, Colombia and Curitiba, Brazil, systems have integrated operating institutions, service networks, and there are now approximately 134 systems world-wide. Electric traction fare schemes. The stations are situated in or near commercial and office also reduces air and noise pollution (for example, in Sao Paulo, Brazil) developments and are designed to facilitate efficient transfers between and can be retrofitted into road systems (for example, in Quito, Ecuador). modes. Public transit is regulated to maintain its reliability, affordability, and efficiency. These strategies serve to make public transport attractive • Light Rail Transit is a more expensive alternative, ranging in cost from even to relatively high-income users. US$30 million to US$50 million per kilometer, a modern form of tram covering short distances. It usually feeds a larger system of heavy metro rail. Some cities with light rail include Hong Kong SAR, China, Kuala Lumpur, Singapore, Sydney, and Tunis. 14 Box 4: Elements of an urban public transportation network Service Types Function Capacity Conditions Requirements Feeder or circula- Shortest trips (usually Low: small busses Lowest population density, Local streets, low costs tors (collectors and 1-3 km) within district (7-20 m in length, but with defined nodes distributors) or neighborhood 20-40 passengers) Local (bus) Medium trips (3-8 km) Intermediate sched- Medium-density nodes or Arterial roads, bus stops, and other facilities from district to city or ules: if more that 1 corridors district to district minute headways Commuter express Long trips (>20 km) Intermediate Few origins, limited Highways or arterials, bus stops, and other bus or suburban rail from regional suburbs destinations facilities to city center or district Bus rapid transit or All trips from district to Intermediate to high high population density: Exclusive lanes on major arterials; 10-20 m light rail transit city (usually 5-20 km) 5,000-10,000 persons per of right-of-way; stations and terminals; inter- km2 mediate investment, typically US$5 million to US$10 million per km for BRT, and US$30 million to US$50 million per km for LRT Grade-separated All trips from district to High Highest population density: Underground or elevated stations and termi- mass transit (elevat- city (usually 5-20 km) >15,000 persons per km2 nals; highest investment, typically US$50 ed or underground) million-US$200 million, depending on infrastructure Intercity (bus or rail) Longest trips from Medium to high Limited origins and Intermodal stations and terminals region to region destinations Source: World Bank, Eco2 Cities, Ecological Cities as Economic Cities, 2010. • A Subway System is the most costly mass rapid transit option, but of people to concentrated job centers. The benefits that come from with the largest capacity. Building costs average more than US$100 enabling such density can outweigh the additional costs. They include million per kilometer, explaining why there are fewer than 200 sys- efficiency and productivity gains—traditionally in industry, increas- tems in the world, most in industrialized countries. However, their ingly in services—but also lower energy consumption, less pollution, number is growing in countries such as China, India, and Venezuela. greater compactness, increased interaction and encouragement of Few cover their operating costs—Santiago, Singapore, Sao Paulo, non-motorized transport for short intra-city trips. Initial metro con- Hong Kong SAR, China, and Buenos Aires are exceptions. Even Busan struction can be supported by land value capture in areas around and Seoul metro systems fall short of covering their operating costs metro stations. Subsidies for metro operations are often covered by with revenue. However, when cities reach a certain size and density, earmarked funds from fuel or sales taxes. metro systems are an efficient option for moving very large numbers 15 16 CHALLENGES IN IMPLEMENTATION In practice, public transport systems can quickly become inadequate and Lack of Visionary Leadership and Political Will congested due to rapid population growth. Often, investments in regular maintenance and new investments in infrastructure, which are needed to Champions and visionary leaders are necessary to shift the paradigm on sustain density in urban areas, are not planned. This policy paper focuses urban transport planning from a piecemeal to a comprehensive approach. on six aspects that the World Bank and Asian Development Bank view as Following the legacy of inter-city transport planning, the current modus critical to ensure the sustainability of urban transport systems, as they operandi for urban transport planning works on a project-by-project basis, are often the most difficult to align (see Annex 1 and 2): lacking the comprehensive vision necessary to integrate each project into broader urban development framework. Such a paradigm shift cannot • Visionary leadership and political will be ushered in through technical specialists and city planners. Such a • An integrated strategy for land use and urban transport shift requires visionary leadership, a champion who understands the big • Local technical and administrative capacity to implement transport picture of an integrated urban ecosystem. Such a leader must be able solutions to navigate the political landscape to convince key stakeholders of the • Regional transport coordination across government levels to give prior- advantages of a holistic approach. ity to investments in metropolitan and modal integration • Cost-recovery to cover long-run variable costs • Private participation in the operation and construction of urban trans- port systems, under certain circumstances. Box 5: The complex political economy of urban transport – lessons learned Unlike many other urban challenges, urban transport is a ubiquitous that particular investment is the most cost-effective way to address the problem that virtually every urban dweller must deal with on a day-to-day particular cause of congestion that has been identified. Such an analysis basis. “Congestion� is often the fallback technical position or justifica- is possible only if the problems have been identified, and the alternatives tion for many investments. However, congestion is usually a symptom of for solving the problem have been analyzed. some other problem, which could include poor road design, poor road net- work design, poor parking management methods, uncoordinated land-use For many decision-makers, being seen as doing something to fix urban trans- control, distorted price signals for travelers, lack of transportation alterna- port problems is sometimes more important than actually fixing the problems. tives, or, in some limited cases, insufficient road space. If congestion is This can result in either investing in infrastructure before appropriate service the underlying factor justifying an investment – and it should not always characteristics are known, or more commonly, purchasing large numbers of be – then any technical analysis of that investment should show how vehicles (buses), with no plan for how to deploy them in an effective manner. Source: World Bank/Asian Development Bank 17 Lack of an Integrated Strategy for Land Use and Urban Transport such as Dhaka, Bangladesh and Lanzhou, China. By focusing development around stations, providing high-quality pedestrian and bicycle facilities, Most cities do not have a comprehensive transport strategy. As a result, and encouraging smart growth land-use, these projects are helping to offer the proposals for specific projects are often not integrated with other a new alternative to urban development in these cities. urban transport measures or with land use patterns. Yet, urban transport systems are complex. They encompass the road network, public trans- port systems, parking, other infrastructure, regulatory systems, and land Fragmented Governance management systems, among others. All these components have close linkages and need to be looked at in a comprehensive and holistic man- The governance of urban transport is highly fragmented. It is fragmented ner rather than as individual fragments. across agencies within a city and across different levels of government. It is fragmented across modes and across jurisdictions. It is also fragmented across By adopting a more holistic approach to transport, it is possible to functions – for example, licensing is often separated from enforcement. This reconcile high mobility with high quality of urban life. For example, in kind of fragmentation constrains comprehensive and holistic planning. Each Singapore, industrial, residential, and social infrastructure is placed agency is driven by its own agenda and, in the absence of a coordinating within walking distance of bus stops and mass rapid transit stations. Road networks are designed to make bus service accessible from resi- dential areas, and pedestrian walkways are covered to provide protection from rain and extreme weather. A mixed-use planning strategy puts work and home closer together, moderating the demand on transport systems. Policy makers have restrained traffic, through road pricing, and have “managed� to maintain a safe, efficient, and environmentally acceptable movement of people, not just vehicles. This implies prioritization of in- frastructure to protect movements of public transport and non-motorized transport against the unrestricted expansion of private motorized trips (as in Bogota, Colombia and Curitiba, Brazil through busway systems). The World Bank and the Asian Development Bank are assisting clients in managing their urban transport networks as ecosystems. This approach includes focusing on urban design issues, such as including appropriate infrastructure and basic services for pedestrians, cyclists, and other non- motorized transport in city planning schemes, creating a variety of housing and transportation options that would minimize motorized vehicle transport for low-income groups in accessing city jobs, and using inclusionary zon- ing, shared-equity arrangements, and tax incentives to create affordable, mixed-income communities in transit corridors. A good example includes the support for a more holistic management of the transport sector through a bus-based mass transit system in Lagos. The World Bank is also assisting cities by supporting regional planning and integration analysis and strat- egy formulation, as well as related inter-agency coordination efforts that facilitate such linkages. The Asian Development Bank is supporting an in- tegrative holistic approach to new bus-based mass transit systems in cities 18 arrangement under visionary leadership, such fragmentation can lead to invested in multiple capacity-building programs, including the PPIAF-World inconsistencies and inefficiencies. Effective management of urban transport Bank Capacity Building Program for urban transport decision-makers, the requires several diverse skills and a wide range of institutions to come together. World Bank’s Leaders in Urban Transport Planning course, and the Asian Agencies dealing with road infrastructure should work with agencies in charge Development Bank’s recent training courses on Bicycle Sharing Systems, of public transport management and operations, land allocation, planning, Bus Rapid Transit Systems, and Road Safety along with capacity-building safety, environment, urban planning, and road traffic management. events offered around ADB’s bi-annual Transport Forum. Several cities around the world have set up unified agencies to regulate A sound urban transport database is critical for informed planning and and manage urban transport. For example, the National Urban Transport decision making. The World Bank has expanded some of its flagship Policy of India requires every city with a population of more than one assessments, namely the Investment Climate Assessments and Doing million to set up a Unified Metropolitan Transport Authority. Dubai has Business Surveys, to the city level. Such data have been used to define recently set up a Land Transport Authority, with Kuwait and Saudi Arabia appropriate entry points for technical assistance and investments in im- planning similar institutions. South African cities are developing integrat- proving cities’ economic prospects, through a more systematic approach. ed urban institutions in the wake of the National Land Transport Authority Unfortunately, a global city-level database is lacking, either because Act of 2009, which devolved responsibility for urban transport entirely to data is housed in multiple agencies or because data is not systematically the cities. Setting up such institutions requires a deeper understanding of collected. This makes planning uninformed. Often, high cost projects are specific policies and regulations that are already in place. It also requires taken up based on assessments using incorrect or “convenient� data. It understanding the governance structure, functions, and inter-agency rela- is not surprising, therefore, that several high cost public transit systems tions of the relevant local or national institutions and interest groups. do not get the kind of ridership that was projected. Such a database should be established, first at the city level, then at the national and global levels. Harmonized indicators and methodologies would be neces- Limited Local Capacity sary to enable compatibility, establishing a globally accepted structure and collection protocol. The Asian Development Bank has established a Project experience from the World Bank and the Asian Development Bank framework under the Global Transport Intelligence initiative for local and shows that urban transport requires a high degree of skills and special- national data collection and the effective dissemination of this informa- ized expertise. Urban transport projects are often planned and imple- tion to policy-makers in the Asia and Pacific region. mented out of a unit within the conventional civil service. But the issues facing the successful development and implementation of an urban transport project (not to mention several simultaneously, as is frequently Inadequate Cost Recovery to Cover Long-Run Variable Costs needed) are complex and technical. They require specialized expertise that can only be supported with compensation at levels competitive with Pricing and financing issues are at the heart of public transport systems. The the private sector. All too often, governments want to develop and manage financing needs for urban transport are daunting. On the basis of international complex urban transport projects without the local capacity to deliver. comparisons of cities in developing countries, the funding of a city’s transport requires between 1 percent and 2 percent of GDP to cover spending on urban Capacity building has to focus on building manpower skills among those road investments, public transport investments, and operating needs. For who are responsible for urban transport planning as well as those who will example, the Master Plan for Transport in Greater Cairo puts forward a public be in charge in the future. This means a focus on training programs as well transport investment of 1.7 percent of GDP for the period between 2002 and as educational programs. There is a need to develop legal, institutional, 2022. Most countries lack resources of this magnitude within their public and policy frameworks for this in several developing cities where the old budgets. Funds are not just needed for one time capital investments, but also inter-city legal and policy frameworks still prevail. A good example of for annual operations and maintenance costs. Therefore, mechanisms that find capacity building includes India’s Centers of Excellence. MDBs have also other sources to help cover operating costs need to be put in place. 19 Lessons learned from World Bank and Asian Development Bank projects • Carbon financing, involving the sale of greenhouse gas emission cred- shows that decisions are often made on the basis of upfront capital costs, its to finance capital or operating costs (e.g., CDM used in Bogota’s rather than full, lifecycle costs. Often, decisions do not take into account Transmilenio). future annual maintenance and operating expenses in making capital invest- ment decisions. As an example, over the 30-year life of an investment in a rail facility, the initial capital investment corresponds to roughly 30 percent Lack of Private Participation in the Operation and of the overall lifetime cost of that service. The remaining 70 percent comes Construction of Urban Transport Systems from operating expenditures associated with running the service, and mainte- nance expenditures associated with upkeep of the facility. Policies and investments in urban transport, including public transport, At the same time, efficient urban transport systems require affordable are a public choice; they are rightfully addressed by the public sector, prices. Affordability refers not just to consumer prices but also to the time following an effective stakeholder consultation and participatory process. losses due to congestion, the consequences of accidents, the health costs Once those policy and investment decisions have been taken, it may be of local pollution, and the damage that more severe climate events inflict appropriate to engage the private sector to implement those decisions. on the population. Transport decisions, particularly those for infrastructure investments, will determine these costs for decades to come, offering op- Public-private partnerships (PPP) require an appropriate allocation portunities to countries whose transport systems are less mature. of risks. These partnerships are not always the lowest cost option; therefore, an appropriate allocation of risks (for example, construc- General fare controls should be determined as part of a comprehensive city tion, economic, and traffic risks) and accurate estimations of value are transport financing plan, and their effect on the expected quality and quan- important. Examples include public transportation terminals financed by tity of service should be carefully considered. Fares are a public policy issue the private sector, such as cases in Brazil and Japan. Supply costs can and depend on income levels and sensitivity to negative externalities, among also be reduced through competition between private sector suppliers. others factors. Public policy considerations may require fares to be below It is important to note that it is not privatization or deregulation per se cost recovery levels. In these cases, fare reductions or exemptions should that improves public transport, but rather the introduction of carefully be financed on the budget of the relevant line agency responsible for the managed competition in which the role of the public sector as regulator categories (health, social sector, education) of the affected person. Modally complements that of the private sector as service supplier. integrated fare schemes should be assessed for their impacts on poor people. Among the good examples of PPPs in public transport is the involvement There is a menu of financing options from which cities could chose from. of private operators in city bus services. Typically, a public agency deter- Mechanisms that help recover operating costs from sources other than mines the route network, the level of service on each route and the fare fares should be put in place: structure. Thereafter, it contracts bus services, through a bidding process, from private operators. Bids are invited on the basis of a positive or nega- • Road tolls and congestion charging tive subsidy that the private operator may seek. London offers one of best • Advertising and merchandizing examples of this form of PPP, but several other cities in Latin America • Parking levies and Asia are moving towards this kind of a structure. Most bus rapid tran- • Fuel taxes and removal of fuel subsidies sit (BRT) systems employ a form of PPP structuring through the use of • Capturing of energy security benefits of sustainable transport private sector funds to supply the vehicle fleets. PPPs allow a sharing of • Capturing of health benefits of sustainable transport risks, with the public entity taking the demand risk and the private entity • Land development and value capture cover techniques whereby the public taking the operating risk. Basic infrastructure is provided by the public entity sells surplus land to developers or develops land around transportation entity, with the private operator investing in the rolling stock. investments (e.g., public transportation system in Hong Kong SAR, China) 20 RECOMMENDATIONS FOR GLOBAL ACTION Last year’s G20 Summit in Cannes endorsed the MDB Infrastructure well as other regional development banks and international organizations, Action Plan, which built on the recommendations of the High Level Panel have long been engaged in urban transport projects. Out of this engage- on Infrastructure Investment. This paper builds on last year’s work and ment, it is possible to create a toolkit outlining the menu of options proposes several new initiatives related to urban transport that could available for addressing critical policy issues in a variety of contexts. unlock the green growth agenda in the context of rapid urbanization in While there have already been previous attempts at doing so, the World developing countries. These joint recommendations from the World Bank Bank and the Asian Development Bank’s development of such an um- and the Asian Development Bank are being proposed for consideration by brella toolkit would go a long way in helping policy-makers to crystallize the G20 Leaders at the Summit in Los Cabos. However, their implemen- the issues, their complexity, and the trade-offs involved in considering tation by relevant MDBs will be highly dependent on the availability of various options. Such a toolkit is all the more important given that there international funding support. is no one-size-fits-all approach, and policy-makers will have to find the right mix of options to suit their particular circumstances. The proposed The World Bank and the Asian Development Bank will use their extensive toolkit will contain 8 modules (See Annex 3), and build on many sources, operational experience to develop an umbrella toolkit for policy-makers including the Sourcebook on Sustainable Urban Transport developed by in charge of urban planning by the end of FY12. The two institutions, as the German Agency for International Cooperation (GIZ). 21 Box 6: Recommendations for global action G20 Summit – Cannes, 2011 G20 Summit – Los Cabos, 2012 HLP recommendations on infrastructure Policy analysis in the urban transport paper Recommendations for global action Centrality of infrastructure for growth and job Urban transport is critical for low-carbon/green Advocate for transport as a key part of sustain- creation in developing countries growth able development Focus on exemplary/transformational projects Transformational opportunities exist in getting Support the development of an umbrella toolkit, urban transport right, but trade-offs exist, and based upon existing sustainable transport careful cost-benefit analysis is required toolkits, to present a menu of options for critical policy issues Enhanced support for capacity building (local Visionary leadership should be combined with Create a global capacity development facility expertise development, coordination) local capacity building Develop a new leadership program on urban transport for decision-makers Global infrastructure data benchmarking Lack of core urban transport data and informa- Create a global, city-level database to quantify tion results in poor investment decision-making externality impacts and assist in better decision making on urban transport investments Lack of funding for project preparation. Scope Lack of grant support for pre-feasibility and Establish a grant-based financing facility to sup- for assessing/rationalizing existing project prepa- feasibility analysis limits the market potential port preparation of urban transport projects ration facilities for enhanced effectiveness, if for scaling-up successful sustainable transport necessary interventions Increased role for private sector financing Policies and investments in urban transport are Consider the benefits to carefully-managed a public choice. A PPP is not always the lowest competition between public sector (regulator) cost option; appropriate allocation of risks is and private sector (service supplier); Adopt PPP required approach under certain circumstances Source: World Bank, Eco2 Cities, Ecological Cities as Economic Cities, 2010. 22 ANNEX 1 8. An array of supporting investments, some in roads and public trans- World Bank Projects – Lessons Learned port infrastructure and equipment, and others involving capacity building, selected so as to make coherent wholes with the above-listed Between 1999 and 2011, the World Bank supported more than 80 urban policy and institutional initiatives. transport projects involving commitments totaling US$10.5 billion. The ob- jective of this support has been to increase the competitiveness and use of The World Bank has a comparative advantage in its global reach and ex- inclusive and “clean� modes, such as public transport services, including perience, fostering regional expertise within a global framework, allowing mass transit, walking, and biking relative to individually owned and used for the cross-fertilization of knowledge, ideas and good practice across re- motor vehicles. The underlying, higher-level objectives of this support have gional boundaries. The World Bank’s global presence allows it to analyze included a mix of growth, poverty, energy and environmental concerns. and compare conditions across regions, tailoring interventions to specific local needs and regional contexts. The approach features a combination of interventions in policy, institu- tions, and investments, as follows: Latin America and the Caribbean 1. Allocation of street space in favor of public transport and non-mo- torized modes, both for the existing urban road systems as well as in Issues – Public transport modes still dominate urban transport in the re- expansion projects gion, carrying 60-70% of motorized trips, despite increasing motorization 2. Pricing policies for parked and moving vehicles, to ration scarce road rates. Public transport also has a socio-economic dimension, as a large space and reflect the true cost of private motorized vehicle use proportion of travelers are low-income. In most cities, public transport 3. Public private partnerships in the regulation and provision of public is limited to street-based bus services, largely in private ownership, with transport services: regulated competition with privately provided op- fragmented regulatory authority. In cities with commuter rail and metro, erations and a strong public role to protect public interest in both the there are only weak links to bus networks. transport and environmental spheres 4. Objective and viable fare and subsidy policies in public transport Strategy – Public transport systems have dominated the Bank’s transport pro- services, stressing targets and links to the social assistance system for gram in Latin America and the Caribbean. The World Bank has pursued public- those in need private partnerships, supported the creation of public transport regulatory 5. Creation of feedback loops from transport demand to resource mobiliza- agencies, and pioneered the use of small-scale grants to act as seeds for larger tion (fuel taxation, congestion charges) and other funding mechanisms BRT projects and policy reforms. In Brazil and Argentina, the Bank has fo- 6. Creation and empowerment of a range of city-based institutions, from cused on suburban railways and metros, often through long-term PPP conces- traffic management departments and public transport regulatory bodies sions, as well as the integration of rail and bus services and fares. In Columbia, to mechanisms or institutions with area-wide, cross-modal responsibilities Chile, and Peru, the Bank’s engagement has centered on BRT within a PPP 7. Development of tools and processes for management and planning of framework to improve transport services and air quality. In Mexico, the Bank urban transport systems. has worked with the government at a national level on sustainable urban trans- port finance, as well as on ‘greening’ Mexico’s urban transport network (such as through the Urban Transportation Transformation Project). 23 Project Good practice and lessons learned Colombia: Bogota Urban This project financed the TransMileno BRT system, a bus-based, rapidly implemented mass public transport Transport Project (1996-2001) system that has redefined the landscape for public transport globally and had a material role in inspiring the con- struction of over 100 BRT systems across the world. Colombia: Integrated Mass This series of projects has financed planning and implementation of BRT projects in 6 of Colombia’s cities. Good Transport Systems (3 loans practice in the transformation of medium-sized cities enhancing accessibility and quality-of-life using investments 2004-2012) and Support for in BRT as an anchor, and on the restructuring of bus operations from competition-in-the-street to a structured, National Urban Transport Program competitively-tendered competition for the market. Lessons learned: there is a need to (i) balance fiscal disci- (2011-present) pline concerns associated with a city spending national funds, with exigencies of constructing in an unpredictable urban environment (with unexpected costs related to delay, utility relocation etc.); (ii) ensure consistent follow- through by cities on agreed reforms; (iii) build capacity and institutional support at the city level. Argentina: Buenos Aires Urban Good practice in (i) rehabilitation of a subway line including stations, rolling stock, and systems (Line A) while Transport Project (2 loans the line is still under operation - transformation of the old rolling stock into a cultural heritage landmark that has 1997-2011) become integral element of the city’s identity; (ii) development of a multi-modal transport station (Moreno) and a revitalized urban area by complementing investments in the transport transfer station with investments in public services (such as parks) and zoning changes; (iii) access to suburban rail stations with investments in sidewalks and related public facilities; (iv) systematic capacity building supporting a 18 month program of academic sup- port for 30 young professionals who now form the backbone of the Ministry’s planning capacity. Argentina: Metropolitan Areas Good practice in supporting the implementation of SUBE, a multi-modal contactless farecard system. Urban Transport Project (2011-) Brazil: São Paulo Metropolitan Good practice in decentralization of suburban rail systems from national to state governments accompanied by Transport Decentralization major upgrades in service capacity and standards, and institutional reforms of the operating and management Project (1992-1998) and companies. Rio Metropolitan Transport Decentralization Project Brazil: São Paulo Integrated Good Practice for urban rail PPP: privately operated rail line within integrated transport system. Line 4 is one of Center- Urban Transport Project the first successful urban rail PPPs in the world. State-of-the-art in terms of: (i) urban rail technology (driverless (2001-2007) system, platform doors, modern rail cars), (ii) innovative PPP arrangement including a 30-year operating con- cession and built using a turnkey construction contract, and (iii) integration with several rail lines and multiple CBDs in the Metropolitan Region (Paulista, Faria Lima, Morumbi, Pinheiros, Luz). It is also generating significant mobility and accessibility benefits to lower-income areas on the periphery of the city because of efforts in the past few years to integrate fares (Bilhete Unico) and lines and modes (terminal stations with passenger connections between rail, metro, bus). Brazil: São Paulo Trains and Ongoing projects for technology and capacity upgrades (improvements to signaling, communication, electrifica- Signaling (2008-) and São Paulo tion, and alignment) of existing metro and suburban rail infrastructure to achieve higher service standards. Line 5 Line 5 (2010-) subway is also being significantly extended to integrate with the rest of the metropolitan network in the center of São Paulo. 24 Project Good practice and lessons learned Brazil: Rio State Reform and Good practice for concession of existing suburban rail system to private operators in PPP model with shared state/ Privatization Loan (1998-2004); operator investments in capital. Capital investments to enhance suburban rail to surface metro characteristics in Rio Mass transit (2 loans (2000- terms of frequency and capacity. Going from significant subsidy to subsidy-free operations combined with signifi- 2009) and Rio Mass Transit II (2 cant increases in ridership (150k/day to 500k+/day). Support for introduction of unified multi-modal fare card in loans – 2009-) Rio city. Peru: Lima Urban Transport Good practice for introduction of successful BRT mass transport system in Lima – including infrastructure and Project (2003-2011) and reorganization of previously informal bus services. Lesson learned: challenges of implementing infrastructure proj- Sustainable Transport and Air ects in urban settings are exacerbated by the possibility of disruption/negative impact on particular communities, Quality Project even if overall net welfare gains are significant. Developing and implementing a continuous consultation process to understand and address community concerns remains a critical challenge. Chile: Santiago Urban Transport Transantiago called for a complete transformation of the public transport system from a generally informal service Programmatic Development Policy provision to an integrated city and system wide network. Lessons learned: initial big-bang approach caused seri- Loan (2005-2006); Technical ous start-up difficulties and adverse public reaction; over time as those have been addressed, system has emerged Assistance Loan (2005-2011) as model for integrated, high-quality, environmentally-friendly modern public transport system city-wide. Bicycle an GEF-financed Sustainable trips increased by 45% between 2004 and 2007; and modal shift from cars between 3.4% and 6.8% depending Transport and Air Quality Project on the day and season. A series of innovative studies regarding sustainable transport were conducted under the (2004-2009) GEF and TAL projects (e.g. on road pricing, school mobility, bus scrapping, bus depot and terminal management, street vendors and public transport). Mexico: Urban transport Good practice in the creation of a National Urban Transport Program through which the federal government sup- Transformation Program (2008) ports a large scale investment program in mass transit and public transport reform in several Mexican cities. The program facilitates private sector participation, introduction of clean technologies, incorporation of top social and environmental standards, and support for projects that are consistent with sustainable urban transport plans. East Asia and the Pacific Strategy – The World Bank is helping clients in the region shift from accommodating motorization towards promoting a greener modal split. Issues – While East Asia was traditionally dominated by bicycle traffic, Projects have focused on better planning and management of urban an unprecedented rise in incomes in the 1990s led to an acceleration transport networks. For example, the World Bank is working with client of motorization. The early response from cities was to build more roads, countries to integrate non-motorized transport into the transport modeling however urban road networks are under increasing pressure from traffic process, such as through the China Urban Transport Partnership Program. growth. Existing municipal public transport companies mostly operate The Bank is helping cities build integrated urban road and public street-bus networks, though there have been trials with private sector transport corridors, such as the Haiphong Urban Transport Development operators, and there are plans to invest in urban rail. Project in Viet Nam.23 The Bank is also leveraging its cross-sectoral expertise in ICT, working with cities to improve transport planning and management through GPS systems, Hackathons and open-source data- bases, such as in the Manila ICT Capacity Building Program. 25 Project Good practice and lessons learned China: Changzhi sustainable This project is the result of a strategic planning study for the sustainable development of urban transport in Urban Transport Project Changzhi, funded by a GEF grant. Currently, public transport and non-motorized transport represent nearly 80 percent of trips in Changzhi, and the city wants to preserve a high share for these modes in the future. The project will support an integrated demonstration corridor improvement including measures to develop public transport, bicycle facilities, and pedestrian needs, and will seek to address off street-parking challenges. China: Wuhan Urban Transport The Phase I project includes city-wide comprehensive improvements, including construction of primary and sec- Project - Phase I and Phase II ondary roads, bus dispatching center, bus depots, procurement of new buses, area traffic controlling systems, and implementation of road safety 3 “e� measures (engineering, enforcement, and education). The Phase II project is focused on integrated improvements in public transport and road safety on selected main transport corridors of the city, and traffic demand management measures. China: Urumqi Urban Transport The project financed a bus dispatch system, among other components. The dispatch system helps the bus opera- Project tor improve operating efficiency and safety. China: GEF Urban Transport Technical assistance program to promote a paradigm shift to public transport for 14 cities and one province. The Partnership Program studies led to the preparation of a new generation of urban transport projects focused on sustainable and inte- grated options. China: Anhui Medium Cities The project focuses on integrated corridor improvement to improve the efficiency of bus services and the safety of Urban Transport Project pedestrians and non-motorized transport. Haiphong Urban Transport Urban road and public transport demonstration corridor. This project provides a package of new busses, GPS vis- Development Project ibility and control, street-scape redesign for safe pedestrian access to the public transport, and new signaling to provide safe crossing, and public transport priority. Kunming Urban Transport Project Metro financing and multi-modal integration support. A clear breakthrough was achieved in securing leadership commitment to rail and bus as well as land use integration to achieve compact city design. Cebu BRT BRT development and TA to develop new institutional forms to manage public transport and provide support to actually set up new Public Transport Authority. Philippines: Manila - EAP ICT Improving transport management and planning through establishment of an open source public transit database, Capacity Building Program which links transit service information across different modes and includes an intuitive web-based interface for easy data updates by multiple agencies. Reliance on open data protocols will enable a multitude of developers to engage and provide public transport users with service information and trip planning tools, as well as to provide service planning tools to government agencies. Cebu Urban Transport Crowd Leveraging low cost ICT solutions to improve transport data collection. GPS units are installed on fleets of vehicles Source ICT Demonstration such as taxis for more effective transport planning and management decision-making. 26 South Asia companies. In Dhaka and Colombo, they are a mix of private and public companies, and in Kathmandu, Nepal, they are now all private. Issues – In the 2000s, the South Asia region experienced sharp economic growth accompanied by motorization both in terms of cars and 2-3 wheel- Strategy – The Mumbai Urban Transport Project (MUTP) was a symbolic ers. While the region as a whole observed a modal shift towards motorized project in the region, adopting a comprehensive approach in the field vehicles, major cities in India have also been active in the implementa- of urban transport. It supported activities to improve the suburban rail tion of rail-based urban transport systems, such as the Delhi Metro. Most system, increase road network functionality with two new east-west link of the metros in South Asia are operated or plan to be operated by public roads, upgrade the bus service with new bus fleet, and introduce an area corporations, with some exceptions of private concessionaires through traffic control system. The Bank has also worked to provide technical as- PPP schemes. City buses in India are generally operated by state-owned sistance and financing for BRT investments in multiple cities in India. Project Good practice and lessons learned Bangladesh: Clean Air & Through technical assistance, the Bank has supported the adoption of the Dhaka Transport Coordination Authority Sustainable Environment project Act, which gives the new DTCA the necessary authority to plan, coordinate, and regulate urban transport in Dhaka. The project also supports feasibility study of the BRT line on one of the key corridors of central Dhaka. India: Sustainable Urban The project provides technical assistance to the Ministry of Urban Development and supports the design and Transport Project implementation of city demonstration projects, such as developing BRT and NMT networks and deploying ITS technologies. India: Mumbai Urban Transport Following on the railway component activities of its preceding project, the Mumbai Urban Transport Project Project 2A (MUTP), the MUTP2A aims to further improve the capacity and efficiency of Mumbai’s suburban rail network, through rolling stock replenishment, power supply conversion, and maintenance facilities improvement. The proj- ect also provides technical assistance on railway operation and expansion. 27 Sub-Saharan Africa economic system. These projects invested in fleet replacement and infra- structure rehabilitation of state or city-owned public transport companies, Issues – Urban transport in Sub-Saharan Africa (SSA) is characterized helping them to maintain or increase service levels while facing com- by rapid growth, with most urban road networks under-developed and petitive pressures from rising motorization. As the transition to market under-maintained. The dominant public transport system is informal and economies has progressed, motorization has risen, and there has been an privately run, mostly based on small buses and, increasingly, on motor- increase in private sector urban transport operators. cycles. At the outskirts of many urban settings in SSA are low-density, in- formal settlements occupied by migrant workers. The roads serving such Strategy – The World Bank has responded by making sure projects informal settlements tend to be worse off than the average. The institu- balance the public and private sectors as providers of public transport tions which govern urban transport in the region tend to be fragmented, services, and by addressing motorization-induced problems through a and are often confronted with funding constraints and weak capacity. combination of road and traffic management instruments. Strategy – The World Bank’s strategy in SSA is to pilot formal public transport services using the Latin American BRT approach adapted to the Middle East and North Africa African context. There is also a strong push for creating urban transport planning and regulatory institutions, which are currently absent, and Issues – Cities in the Middle East and North Africa (MENA) generally support their capacity building. These institutional aspects are combined suffer from high urban density, limited supply of public transport, limited with attention to traffic management issues and the possibility of putting expertise in urban transport, and institutional fragmentation. The World urban transport on an environmentally-stable track. Bank’s urban transport program in MENA reflects the local contexts in the countries. The World Bank’s work on urban transport is ramping up with pub- lic transport components or stand-alone projects in Nigeria, Ghana, Strategy – In Morocco, the World Bank contributed to the development Tanzania, and Kenya. A notable project in SSA is the Lagos Urban of a national urban transport strategy and provided a Development Policy Transport Project, which served as a catalyst for the creation of the first Loan (DPL) to support government reforms in urban transport, particularly successful BRT line in Lagos metropolitan area. The project featured for improving sector governance through institutional capacity build- a four-pronged approach: (i) major package of improvements on main ing, improving the efficiency of public transport, and ensuring social urban roads; (ii) competitive public transport service licensing for routes and environmental sustainability. The Bank is also involved in providing operating on the improved network; (iii) creation of a semi-autonomous technical support on planned mass transit systems in the major Moroccan agency to regulate/manage the licensed operations; and (iv) creation of a cities. In Egypt, the World Bank provided technical support to the Cairo transport fund fed from user charges and transfers. taxi replacement program, an ambitious and effective government pro- gram to renew the obsolete and largely inefficient taxi fleet in Cairo. The Bank also provided technical assistance for the elaboration of an urban Eastern Europe and Central Asia transport strategy, and a study to assess and mitigate congestion in Cairo, which both feed into the development of an urban transport project. In Issues – In the 1990s, the urban transport program of the ECA region Lebanon, the World Bank project has supported the alleviation of physical was part of a Bank-wide, multi-sector effort to assist the former socialist bottlenecks in Beirut, the creation of a traffic management system, and countries to adapt their institutions and policies to the new political and the design and implementation of a street parking charging scheme. 28 Project Good practice and lessons learned Morocco: Urban Transport Sector As the first DPL in the urban transport sector at the national level, it was effective in supporting the establish- DPL ment and reinforcement of important institutional structures, such as the urban transport division within the Ministry of Transport and Casablanca’s Metropolitan Transport Authority. Coupling DPLs with investment projects could become effective tools in supporting the necessary policy reforms in the sector in parallel to providing nec- essary investments to build public transport systems and reinforce the capacity at local level through investments projects. Egypt: Urban Transport This project under preparation anticipates the creation of the necessary integration between the different modes Infrastructure Development of existing public transport in Cairo (Metro, and buses particularly) and the support of effective parking and traffic management solutions. Lebanon: Urban Transport The street parking charging scheme contributed to rationalizing the use of limited street space and created public Development awareness on the cost of transportation. Further efforts are required to tackle increasing congestion problems in Beirut. 29 ANNEX 2 (ii) Metro projects in Ho Chi Minh City and Hanoi (Vietnam), Tbilisi Asian Development Bank Projects (Georgia), and Baku (Azerbaijan) – Lessons Learned (iii) Light rail transit (LRT) projects in Almaty and Astana (Kazakhstan) (iv) Integrated urban transport and non-motorized initiatives in Davao City and Pasig City (Philippines), Kathmandu (Nepal), Vientiane The Asian Development Bank is working in a region experiencing accelerating (Laos PDR), Xian (China), and Yerevan (Armenia). growth in urbanization. At current pace, the Asia and Pacific region is adding the equivalent of 120,000 persons to its urban population each day, which Several of ABD’s active urban transport projects are showcased below. places stresses on the economic and social fabric of the region’s cities. To address these trends and to align its operations to a sustainable E-Tricycles in the Philippines transport future, the Asian Development Bank (ADB) has established aggressive targets to transform its transport operations towards the ADB is working with national and local officials in The Philippines and organization’s three strategic agendas of inclusive economic growth, the Clean Technology Fund to scale-up a pilot program that introduced environmentally sustainable growth, and regional integration. In order to locally-fabricated electric tricycles (E-tricycles) using lithium-ion bat- operationalize these objectives in the transport sector, ADB has created tery technology across the country. Nationwide there are an estimated its Sustainable Transport Initiative (STI). Under the STI, ADB will scale 3 million tricycles, which emit approximately 10 million-metric tons of up investments in four new focus areas: (i) urban transport; (ii) climate CO2-equivalent per year. change and energy efficiency; (iii) regional cooperation and integration; and (iv) road safety and social sustainability. The principal benefit from the E-tricycle program is its impact on urban air quality. Energy security and reduced pressure on national balance-of- ADB is currently investing US$3.5 billion annually into the transport sec- payments are other strong motivations for the E-tricycle program. In 2010, tor. Through the Sustainable Transport Initiative, the bank has set targets The Philippines spent approximately US$8.78 billion on imported oil, 39% to invest more in urban transport with public transport being the lead more than in 2009, due to both higher demand and rising prices. element of this investment. ADB has targeted that at least 30% of its transport lending portfolio will be dedicated to the urban sector by 2020. The project is being designed around a unique financing model in which This commitment compares to the average annual investment of only 1% tricycle operators can repay for the cost of the vehicles through the operat- of its portfolio into urban transport between 2000 and 2009. ing cost savings being realized. Lithium-ion battery technology has been selected due to its cost-effectiveness and overall performance. The trans- In 2011, the percentage of urban transport in ADB’s actual transport formation of existing tricycle manufacturing is another expected outcome. lending stood at 15% of the transport portfolio. Some of the most recent Due to the project’s scale, it is expected that the local tricycle manufactur- initiatives to be developed under this portfolio include: ing base will grow from its nascent position of six suppliers to a mature industry with production capacity of more than 3,000 units a month. While (i) Bus Rapid Transit systems in Dhaka (Bangladesh), Lanzhou, Jiangxi certain components of the electric vehicle will initially be imported, there Ji’an, Jiangxi Fuzhou, and Hubei-Yichang (China), and Ulaanbaatar is also an emphasis on creating incentives for local business development. (Mongolia) 30 State Bus Company. The buses will be used on 8 routes radiating from the central bus terminal in the Vientiane core area to other parts of the city. Kathmandu Sustainable Transport Project Kathmandu Valley (Nepal) is severely constrained in developing efficient urban infrastructure, notably its urban transport system. The city’s popula- tion is expected to grow significantly from 2 million to 4 million in the next 10 years. Urban sprawl and increasing motorization rates are compounding congestion, pedestrian and vehicular conflict, environmental degradation, road accidents, and poor public transport operation and services. The Kathmandu Sustainable Urban Transport Project will upgrade trans- portation through traffic management measures, the rationalization and upgrading of the public transport network, the pedestrianization of heri- Motorized Tricycle (left) and E-tricycle (right) tage routes within the city core, and air quality monitoring. The project is co-financed by the Asian Development Bank’s Special Funds, the Global Environment Facility and the Government of Nepal. Vientiane Sustainable Urban Transport Project Metro System Development in Ho Chi Minh City With increases in population and the number of vehicles, the traffic conditions in Vientiane (Lao PDR) are deteriorating. The city is starting to Motorcycles currently dominate the streetscape of Ho Chi Minh City, experience congestion and related problems of accidents and deteriorat- representing 85% of transport in the city. At the same time, growth in car ing local air quality due to the rapid growth of private motorized vehicle sales is accelerating. High private vehicle usage has resulted in severe use. The Vientiane Sustainable Urban Transport Project will support the congestion. Conditions for pedestrians are particularly difficult, especially piloting of a sustainable urban transport system in central Vientiane. at street crossings. The existing public transport system consists of a The project will focus on four components: (i) establishment and opera- poorly integrated bus network that cannot compete with private modes. tion of a pilot environmentally sustainable transport agency, conceived as an integrated urban transport organization; (ii) pilot enhancements to The Government of Vietnam (GoV) is planning major public transport pedestrian facilities and potential pedestrianization of the central area; infrastructure investments intended to induce a substantive modal shift (iii) pilot public transport services and facilities; and (iv) a demonstration from private transport to public transport modes. With financial sup- traffic management scheme including a parking plan for the city center. port from the Asian Development Bank, European Investment Bank, Kreditanstalt für Wiederaufbau and the Clean Technology Fund, the GoV The Government of Japan, through the Japan International Cooperation is developing of a line of the Ho Chi Minh City metro, which is expected Agency, continues to be an active development partner for Vientiane’s urban to be operational by 2017. Amongst the integrative features of this transport sector. Recent technical cooperation by JICA include (i) the 2008 initiative are improvements to pedestrian and bicycle facilities connect- Vientiane urban transport master plan, including a follow up study to improve ing to the MRT system, park-and-ride facilities for cars and motorcycles, the public bus capacity in Vientiane; and (ii) the Vientiane urban master and improved bus links and multi-modal interchanges to ease transfers plan. JICA is also financing procurement of 42 new buses for the Vientiane between modes. The project’s design and implementation is being guided 31 by adherence to gender-sensitive features and the adoption of a fully The BRT corridor features 20 kilometers of dedicated two-directional inclusive design that will permit universal access for all user groups busways that will follow international good practice and quality standards. including the physically disabled. In addition to dedicated pedestrian and non-motorized transit (NMT) vehicle lanes along the corridor, the project will lead to the enhanced Other metro lines, financed by Japan International Cooperation Agency NMT access on 155 feeder roads that integrate with the corridor. Due and the Spanish government, are expected to be operational in 2016 and to seasonal flooding issues in the Greater Dhaka area, the project also 2018, respectively. The GoV is preparing four additional lines in Ha Noi, features the construction of efficient high-capacity drainage along the with all expecting to be operating by 2020. corridor. The project will also feature technologies and components that will enhance the travel experience, including: i) clean vehicle technology; ii) traffic management controls; iii) CCTV cameras; iv) real-time informa- Greater Dhaka Sustainable Urban Transport Project tion displays; and, v) new street lighting. Another principal output from this initiative is the transformation of Dhaka Transport Coordination Board (DTCB) into Dhaka Transport Coordination Authority (DTCA), to undertake In order to improve traffic conditions and the overall urban transport sys- planning, regulation, and coordination of all mass-transit systems, follow- tem of Dhaka, the Asian Development Bank, in cooperation with the French ing joint recommendations from the development partners. Agency for Development and the Global Environment Facility, is developing a pilot Bus Rapid Transit (BRT) corridor in Dhaka. The corridor extends from the Uttara, near the international airport, to Gazipur City. 32 ANNEX 3 Umbrella Toolkit for Policy-Makers in Charge of Urban Planning Several toolkits on aspects of urban transport have been developed to date.1 Their focus has been primarily on technical solutions. The proposed new umbrella toolkit will enable urban policy-makers to better identify the policy choices that exist and guide them in selecting among options in a manner that is best suited to the local or national context. It would: • Identify the major sustainable transport intervention options available • Lay out the critical policy issues at each level of government • Present a menu of options for each policy issue • Identify the factors to consider when assessing the various options - there is no universal right answer and choices need to be made in the local context • Provide a guide to how these factors can be used in making policy choices • Illustrate the options with examples of good practices • Provide access to specific technical resources. The toolkit would follow a decision tree structure in guiding the policy maker in a step by step, scenario-based process. 1. This toolkit will draw on many sources, including, among others, the Sustainable Urban Transport Sourcebook, GTZ, 2002; the World Bank Leadership Program in Urban Transport, Planning, 2012; the GEOGRAPHY OF TRANSPORT SYSTEMS, Jean-Paul Rodrigue, Claude Comtois and Brian Slack (2009), New York: Routledge, 2009; the Ministry of Urban development, Asian Development Bank, Guidelines and Toolkit for Urban Transport Development in Medium Size Cities in India, 2008. 33 Effective institutional and governance In action… structures Nigeria - In 2002, to address congestion problems in Lagos, a law was passed to create a metropolitan transport authority (LAMATA) with broad powers, indepen- Policies need to be framed at multiple levels – national, provin- dent resources and staff of international quality. The authority’s mission is to coor- cial, regional and local. Each level has its areas of responsibil- dinate and implement the transport policies, program and actions of all transport ity. For example, national levels will be responsible for setting related agencies in Lagos. It is governed by a board of directors appointed by the fuel and vehicle standards and a framework for national level governor and reporting to him. The World Bank supported the project via a loan and financial support for investments; provincial levels would be in- technical assistance. The first achievements of LAMATA were to improve the qual- volved with taxation policies; and regional/local levels would be ity of its road network and to open Lagos first bus rapid transit (BRT) in 2008. involved with other aspects of the policy. Therefore, the toolkit would address the needs at each of these levels. India - The national government launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) as a partnership of the national, provincial and local Urban transport is complex and needs coordination across government for development of urban infrastructure. Launched in December, 2006, multiple dimensions. The local government is closest to users’ this program envisages structured and agreed grant support from the national and needs, and thus may seem the natural choice for these roles. provincial governments for infrastructure creation in cities. There is a requirement However, responsibilities often vary among agencies, depend- for a certain set of reforms, primarily aimed at ensuring the financial sustainability of ing on aspects such as technical capacity, financial strength or the assets created. An amount of US$12 Billion (approximately) was set apart for the economies of scale – cities can benefit from a common entity national government support, with an equal amount expected to be leveraged from undertaking this responsibility for them. the provincial and city governments, as well as the private sector. Political issues needs to be considered, such as higher levels of Morocco - A metropolitan transport authority has been created for the city government unwilling to delegate some of their powers to lower of Casablanca. Currently, its role remains limited to the coordination and levels. All of these issues are relevant in deciding which level of plannification of urban transport; however it is supposed to gradually assume government should deal with urban transport. more of a regulation and project execution role. Other cities in Morocco are studying similar coordination arrangements. Patterns vary across countries. Different levels are responsible for urban transport in different countries. For example, Ghana and Kenya have a department of Urban Roads that is respon- sible for the construction of roads in all urban areas, whereas in most other countries this is a local responsibility. In India, public transport is the responsibility of the provincial govern- ment whereas in several others this is a local responsibility. 34 Land use policies In action… Urban space has to serve a variety of needs - housing, work Korea – Having experienced acute congestion problems in central urban areas, the Republic of Korea has initiated a formal program to promote Transit-Oriented space, social interaction – along with mobility of persons and Development (TOD) in new cities. The plan for TOD in the new town of Unjeong goods. To create and preserve a livable urban environment, is the first of its kind in the Republic of Korea in terms of offering an alternative the requirements of these needs have to be balanced against to standard car-oriented development. The new town will be developed based each other. Land use planning serves to weigh the demands on on two regional public transport networks which will link the new town with limited urban space. Seoul. Within the new town, bus rapid transit (BRT) will be the principal public transport option, with a regional railway offering access to Seoul within 35 to 45 Mobility choices have a substantial impact on urban develop- minutes. The Unjeong TOD project is a comprehensive approach to coordinat- ment. The decisions made concerning mobility lead to inherent ing green development and green transport in newly developing areas in order tradeoffs: to reduce traffic congestion, enhance energy security, and reduce environment degradation. TOD in new towns helps achieves two core objectives, accommodat- ing rapidly increasing population growth; and reducing the negative impacts of • a compact city where people can access jobs, education and the transport sector on energy security and the environment. such other needs quickly and easily, but have smaller places to live in? Or, • a sprawling city where everyone has plenty of space to live, but must travel longer distances, costing more money and time? Different cities have used different norms. Most cities in India have a more or less uniform floor area ratio (FAR) whereas others use a diversified FAR norm that allows them to densify areas well connected with public transport. Curitiba and Singapore have done an excellent job of getting high densities close to high capacity public transit stations with a view to make such modes more at- tractive, while cities like Atlanta have a low FAR and are sprawling. In developing countries, there is an increasing awareness of the need for steering urban development in order to avoid unsus- tainable structures, but institutional capacity is typically weak. Setting priority on road network capacity extensions without a clear vision of spatial development has failed to mitigate conges- tion everywhere in the world. Without acknowledgement of the in- teractions between land use planning, urban growth and transport development, no sustainable transport system can emerge. 35 Managing the growth of transport demand For example, a corridor-based approach to urban planning, which fosters high density development along a few corridors, would be a good choice for The policy question that faces every city: to manage supply or to manage high capacity metro rail or BRT systems, whereas a more dispersed urban demand. Successful policies tend to use a mix of both. The challenge is form may find buses on a shared right of way to be a good choice. Countries to come with the right mix in the policy framework. with a high share of imported petroleum fuels may prefer electrical fuels when compared to those that have their own sources of petroleum fuels. Most cities in the developing world are focused on supply side measures that seek to enhance road capacity and public transport capacity, largely Longer term effects on poverty, city form, and the environment also must due to the rapidly growing demand and high urbanization rates. Growing be considered. In order to maintain a transit-friendly city form and ensure cities still at low levels of urbanization cannot escape significant invest- that the urban poor have access to employment, contacts and services, ments in creating new capacity. a critical factor in deciding between public transport alternatives must be the long term impact on the share of people traveling by public rather However, an early effort at demand side measures can greatly help to save than private transport. significantly in future investment needs. In fact, in cities which are growing more slowly, it may be possible to deliver adequate transport capacity by focusing attention on reducing the demand to match the available capac- ity. London has used congestion charging as a demand management tool and Singapore also uses vehicle ownership restraints as a tool for reducing personal motor vehicle use. Several other cities have instituted high parking charges. With informed demand management, developing cities have an op- portunity to leapfrog an era of car-dominated development, one which many major cities in developed countries are struggling to manage. Choosing between alternative public transport technologies Alternative technologies for public transport have their own unique char- acteristics in terms of carrying capacity, fuel used, capital and operating costs, operating capabilities, appropriateness for difference city forms, etc. These technologies range from buses that share the same road space with cars and other vehicles to underground metro rail systems. While buses on a shared right of way are the least expensive and the most flexible in terms of the route they can use, they have the lowest carrying capacity. At the opposite end, underground metro rail systems are the most expensive and least flexible but offer the highest carrying capacity. Within these extremes are a range of intermediate possibilities like trolley buses, BRT systems, trams, monorail and light rail that have their own unique features. Hence a choice of technology can often be difficult and complex. A framework of policies can help in making the choices easier. 36 Role of the public and private sector In action… In an ideal world, user fees, tolls, fuel taxes and other direct charges to beneficiaries would cover urban transport invest- Korea - Under a Public-Private Partnership, the Korean government has set up a ments and operations and maintenance costs, taking into ac- national standard and quality assurance system for smart card fare systems. In count the positive externalities of public transit. In reality, the general, the private sector in Korea has assumed the lead in system operation funding equation is much more complex. Given the multitude since publically-operated systems have not proven to be as efficient. Also, the of externalities and the difficulties in determining beneficia- private sector has the better capability of developing new markets for smart card ries, fair user charges are often hard to define. Because urban systems through convenience stores and commercial centers. The public sector’s transport governance is often fragmented and diffuse, with role has been to monitor and control fare levels and to oversee service quality investments and maintenance costs separated from operations through contractual arrangements. revenue, an overarching budget is often lacking. Thus, to ensure the sustainability and coherence of urban transport financing, some cities have partnered with the private sector to leverage its efficiencies and work together to deliver urban transport infrastructure and services. PPPs in urban transport tend to take the form of concessions, where the private sector participates both in capital investment and in operations. While such concessions can help increase efficiency and ease the strain on public budgets, risks need to be properly shared and regulation needs to be in place to ensure that private profits are balanced with social responsibili- ties. Urban transport concessions need to be carefully planned to ensure that they fit as part of the broader urban transport network. The public sector needs to ensure a strong regulatory and institutional enabling environment is in place to help plan and implement the concession. The public sector is in charge of setting the scope of the project, determining the role (if any) for the private sector, establishing the legal framework necessary (including securing contract obligations and property rights), managing an open and transparent bidding process, and estab- lishing an independent regulatory regime, among others. A mix of models has been used around the world. While the US, Russia, and China use a dominant public share in the provision of urban public transport services, UK and countries in Latin America are largely using private operators. In Africa, small private operators of buses dominate the public transport market. 37 Mode share policies In action… Mode share policies seek to maximize the share of trips by pub- Korea – Changwon City introduced its Bicycle Sharing program in conjunction with new bike lanes connecting most parts of the city. The Bicycle Sharing lic transport or by non-motorized modes, as these modes are program was initiated in 2008, and currently boasts 230 bike sharing ter- more sustainable, require less road space, consume less fuel minals and 4,630 bicycles. Participants in the Bicycle Sharing system can and emit less pollutant per passenger. The key to sustainable register at the system’s web site with a payment of US$20 per year or US$3 outcomes in the mode share is the choice of the right policies per month. These members are then permitted to use the bicycles for free if with regard to each of the above in the policy framework. In returned within a two hire period for each hire. A user survey has indicated addition, the mode share of a city has longer term effects on that over 86% of the members are quite satisfied with the system. Members poverty, city form and the environment. responded that they used the program to go to work/school (46.7%), to enjoy leisure activities (27.2%), and to make business visits or others (7.7%). The factors that influence, positively or negatively, the mode Hence, the Bicycle Sharing System plays a central role in addressing peak hour travel in Changwon. share are: Dis-incentivizing private car use must be accompanied by well-run and exten- • Land use plans sive public transport systems and, where feasible, by making non-motorized • Cost of public transport transportation attractive for short trips. Examples of the latter include the • Cost of fuel bicycle sharing systems in Changwon and Hangzhou, cycle ways and car-free • Quality of public transport days in Bogota, Cape Town, and Jakarta, and pedestrian greenways in Seoul • Safe facilities for walking and cycling, segregated from mo- and Guangzhou. tor vehicle traffic • Policies relating to fuel and vehicle technologies. Historically, many cities have implemented policies which have reduced the appeal of non-motorized transit options, encourag- ing the use of cars for even short trips. However, an increasing number of city governments in developed and developing coun- tries have reversed policy, and are actively promoting bicycling and walking as significant parts of their urban transit systems. 38 Financing - Who pays? The question is, who should pay for transport systems and who are the beneficiaries of such systems? Is it fair for the user alone to pay for public transport? Policies that permit some degree of subsidization recognize that non users are also benefi- ciaries. So the question becomes – what share should the users pay and what share should the non-users pay? The financing of urban transport involves a variety of actors, who all play varied but important roles. City administrations, national and regional governments, citizens, international orga- nizations, and the private sector can all be involved. However, the scope and the nature of the role each play varies by country, city, and context. In determining the share that users should pay, affordability is an important consideration. It was often considered in the recent past that public transport is to be used by the poorer sections of society who cannot afford a private car, and so they should not be required to pay more than what they can reason- ably afford. While this still holds true in terms of providing access to under privileged segments of the population, promot- ing public transport is now part of a broader modal shift agenda that requires it to be appealing to people using cars, who likely pay a fare closer to the real cost of the service. Differentiated and targeted subsidies or cash transfers may therefore also considered. 39 Social and environmental issues In action… Unsustainable urban development comes with a price. Impacts Mexico – The Government of Mexico (GoM) created the PROTRAM (Federal Support on the environment, health of urban residents, and loss of well- Program for Mass Transit) within FONADIN (National Infrastructure Fund) to being can all be contributed, at least partially, to cities’ failure improve the efficiency of urban transport and to steer it towards a lower-carbon de- to develop a sustainable urban transport system. The forms of velopment path. Mexico has committed to cutting its green house gas emissions by non-motorized and public transport needed to face the social 2050 to half the 2002 level. Urban transport is responsible for 18% of the national and environmental issues created by the worldwide increase in emissions total. Hence the need for a national mass transit program. PROTRAM motorization require a paradigm shift in planning, incentives finances planning studies and infrastructure investments for mass transit through and education. Policies need to be put in place to make urban grants, loans and guarantees. To be eligible, a city must have carried out a compre- transport more energy efficient without compromising residents’ hensive planning exercise, known locally as an Integral Sustainable Mobility Master needs for access and mobility. Plan (PIMUS in Spanish), to frame the overall transport policy. PROTRAM’s techni- cal unit analyses the requests to finance an urban transport project from technical, Many forms of urban transport have obvious side effects in social, environmental, and financial viewpoints to determine basic feasibility. The the form of air pollution and green house gas emissions. While final decision on funding rests with FONADIN’s Technical Committee (CT), headed policy actions in each of the areas of transport emissions can by SHCP and participation of SCT, SEMARNAT, Tourism Secretariat (SECTUR), result in benefits, coordinated action through integrated plan- BANOBRAS, three state governments and SFP. Currently, there are over 40 projects ning can result in exponentially multiplied benefits. in PROTRAM’s pipeline worth over 10 billion dollars. PROTRAM has signed financ- ing agreements with five cities. Egypt - The government of Egypt, through the ministry of Finance, has put in place a place a taxi replacement program in Cairo to replace the obsolete taxi fleet in Cairo. The program is well designed and combine a range of incentive (capital contribution, reduced taxes on vehicles, negotiated soft loans with Banks…).The program has been quite successful with estimated more than 20,000 taxis already replaced. It is estimated that the new taxi fleet will result in about 30% improvement in fuel efficiently, and associated emission reduc- tions, relative to the old fleet. The expansion of cities, and their concurrently expanding road networks, often comes at the expense of the safety of the most vulnerable road users. Road traf- fic accidents result in hundreds of thousands of deaths annually, with a dispro- portionate number (90%) in middle and low-income countries, many of which are not motor vehicle occupants at all, but pedestrians, motorcyclists, bicyclists and non-motorized vehicle occupants. While urban transport systems can be frequently overlooked in discussions of quality of life issues for city dwellers, they are dynamic, influenced by and influencing the choices member of a society can make. Ensuring greater ac- cessibility, with easier and safer transport, especially in and around low income settlements can benefit the poor, women, the elderly, and the disabled and are accompanied by greater mobility. 40 END NOTES 1. Source: United Nations Population Projections. 15. See Kamal-Chaoui, L. et al. (2011), The Implementation of the Korea 2. The “People’s Republic of China (PRC)� is recognized as the official Green Growth Strategy in Urban Areas, OECD Regional Development country name under ADB publication standards and guidelines. For the Working Papers 2011/12, OECD Publishing. remainder of this document, though, the name “China� will be taken to 16. See Sustainable Low-Carbon Cities Development in China, Axel Bauemler represent the terms “People’s Republic of China (PRC)� as per World et al., (eds), World Bank, 2012. Bank publication guidelines. 17. In 2011, leveraging a grant from AusAID, the World Bank worked with 3. See United Nations, Department of Economic and Social Affairs, three cities in South-east Asia – Cebu, Philippines; Da Nang, Vietnam; and Population Division (2012). World Urbanization Prospects: The 2011 Suabaya, Indonesia to estimate the overall energy consumption and GHG, as Revision, CD-ROM Edition. well as to identify illustrative actions that could be taken to improve city-wide 4. See Sustainable Low-Carbon Cities Development in China, Axel Bauemler efficiency of energy use. The study showed that the related GHG emissions et al., (eds), World Bank, 2012. from the transport sector account for a major share of total GHG emissions 5. See World Development Report 2009 – Reshaping Economic Geography. in each of the three cities (40% in Cebu, 46% in Da Nang, and 20% in 6. See States of the World Cities, UN-Habitat, 2010. Surabaya). While all three cities currently experience relatively low energy 7. See Toward an Integrated Green Transport System in Korea – Convergence of intensity in the transportation sector (9,000 to 11,000 MJ per capita per year Technologies and Policies, Korea Transport Institute, 2010. – about 25% the intensity of New York), energy consumption for transporta- 8. See Kamal-Chaoui, L. et al. (2011), The Implementation of the Korea tion is rapidly increasing, following motorization trends toward 2-wheel and Green Growth Strategy in Urban Areas, OECD Regional Development 4-wheel modes of private transportation -- a trend that is representative of the Working Papers 2011/12, OECD Publishing. sector across the East Asia and Pacific region. 9. See Sustainable Low-Carbon Cities Development in China, Axel Bauemler 18. See The Right Turn. Ensuring Development Through a Low-Carbon et al., (eds), World Bank, 2012. Transport Sector, world Bank, 2012. 10. Urban mobility is particularly important for the poor. The urban poor in Beijing 19. See The Right Turn. Ensuring Development through Low-carbon and Shangai spend less than 5 percent of their income on transport because Transport Sector, World Bank, 2012. they walk or cycle. If they chose to travel by bus, the costs would be 40 per- 20. See Guidelines and Toolkits for Urban Transport Development in cent of their income. Brazil’s vale de transport is an effective way to subsidize Medium-sized Cities in India, Ministry of Urban Transport and poor workers in the absence of good urban transport—financed by the central Asian Development Bank, 2008. It encourages cities to prepare government and by the employer in equal parts. “Comprehensive Mobility Plans� (CMPs) as part of long-term urban 11. Many thanks to Sturzenegger, Camilo Deza, Nestor Roa and Natalia Sanz transport strategy providing for a sustainable improvement of people’s (IADB); Ralph Olaye and Lise Weidner (AfDB); Dan Green, Witek Szpak and mobility in metropolitan regions. Sofia Keenan (EBRD); Farid Ahmed Khan (IsDB); and Corinne Him (EIB) for 21. See Shomik Mehndiratta, Urban Transport and Climate Change, In Low- their help in accounting for MDB commitments in urban transport. Carbon Cities Development in China, Axel Bauemler et al., (eds), World 12. See Transformation through Infrastructure: World Bank Group Bank, 2012. Infrastructure Strategy Update, 2012-15, World Bank Group, 2012. 22. See Inclusive Green Growth: The Pathway to Sustainable Development, 13. See statement on behalf of the Partnership on Sustainable Low-Carbon World Bank, 2012 (draft). www.worldbank.org/inclusivegreengrowth. Transport. 23. “Viet Nam� is recognized as the official country name under ADB pub- 14. See Cities – Investing in Energy and Resource Efficiency, Green Economy lication standards and guidelines. For the remainder of this document, Report, UNEP, 2011. though, the name “Vietnam� will be taken to represent the terms “Viet Nam� as per World Bank publication guidelines.