development of urban transport infrastructure - world...

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Development of Urban Transport Infrastructure

Slobodan MitricBudapest - March 1, 2001

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Subject of this session

• Major urban roads (expressways)

• Urban public transport modes requiring separate infrastructure (e.g. metros, exclusive busways, ..)

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Preview of the policy question askedin this session:

Should the World Bank finance major extensions of urban transport network, such as expressways and metros?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

A reminder:

World Bank transport projects involve reforms in the transport sector leveraged by loans to finance investments in transport infrastructure, equipment and technical assistance

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Case 1: Roads - elements of an urban roads strategy

• Road maintenance/rehabilitation activities• Traffic/parking management activities• Traffic law enforcement activities• Road expansion projects• Road organization and administration (institutions)• Road use pricing (direct, indirect)• Road financing

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Urban road expansion – typical cases:

• The city in question is growing, so “package” investments are needed for new roads in the expansion areas

• Traffic is growing, so it may be proposed to superimpose new type of roads on an existing network (e.g. urban expressways)

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Policy question of this session:? Should cities respond to motorization by

constructing urban expressways?

? Should the World Bank finance these new urban expressways?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Strategic issues involved [1]

?Are lower-level elements of the roadstrategy in place?

?Are new roads part of a coherent (higher-level) strategy for urban transport and land development?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Further strategic issues [2]

? Is an efficient system of road use pricing, revenue allocation and expenditure planning in place?

?Should these new urban expressways be priced (tolled) separately?

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Further strategic issues [3]

? Which method of economic, financial, … evaluation has been (or should be) used for new roads?

? Does the evaluation method include the consideration of generated traffic (feedback from road construction to accelerated motorization and land use changes)?

? Is the method broad enough to include non-monetary and less-quantified factors, such as poverty, air/water quality, noise, esthetics …?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Remember the linkage

Tolled urban expressways

Possible private financing

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? Which reform initiative is important enough to be placed in tandem with Bank investment in such large-scale projects like urban expressways?

? Possible option: locally-based road use pricing (e.g. peak-hour entry fee, as in Singapore; electronic road pricing, ..)

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Case 2: Public transport - Elements of an urban public

transport strategy? regulatory framework (to encourage competition)

? other measures to reach efficiency (e.g. street priority)

? service standards

? price/subsidy policy

? financial health and internal efficiency of operators

? replacement investment program

? fleet/infrastructure expansion program

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Reminder: types of urban public transport modes

? street-based bus, trolley-bus, tramway and LRT lines

? same as above, on reserved street lanes

? semi-rapid transit (SRT) lines: same as above, on partially exclusive right-of-way

? rapid transit (RT): fully exclusive right-of-way, e.g. metros, regional rail

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Policy question of this session:

Should cities in developing countries build rapid transit or semi-rapid

transit (say: metro) projects?

Should the World Bank finance these projects?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Strategic issues involved in answering [1]

?Are lower-level elements of public transport strategy in place?

?Does it represent a technological and financial “leap” in this city?

? Is the proposed metro project a part of a coherent transport/land-use concept?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Strategic issues for metros [2]

?Which approach to evaluation (economic, financial, social impacts, environmental impacts …?

? Is the metro affordable to city and/or state (in terms of both capital and recurrent costs)?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Strategic issues for metros [3]

?Which pricing policy will apply?

?What is the financial forecast for the metro operating company (e.g. operating income, sources/utilizations of capital, balance sheet)

?Who should own/operate the new line? (P&P partnerships?)

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Strategic issues for metros [4]

?Are complementary measures in terms of public transport feeders/distributors in place

?Are complementary measures to manage urban road congestion in place?

?What will be the impact of the metro on low-income travelers?

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Strategic issues for metros [5]

? What policy reform initiative can be placed in tandem with a metro project to make it a rounded development project?

? Option: a private/public partnership (concession).

? Should the policy initiative be limited to urban public transport, or can it extend to the road sub-system (e.g. road use pricing)?

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Rondo theme: back to the beginning

Can the World Bank finance

- urban expressways?

- metros?

or should it focus on simpler projects?