I s l a m i c D e v e l o p m e n t B a n k

Islamic Development Bank

Experiences in Financing Road Maintenance

I s l a m i c D e v e l o p m e n t B a n k

Outline

• IDB Group

• Project Cycle and Infrastructure Operations

• Transport Division

• Road Maintenance & IDB’s Experience

• Conclusion

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IDB Group at a Glance

International Islamic Trade Finance Corporation (ITFC)

Islamic Research & Training Institute (IRTI)

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)

Islamic Corporation for the Devt. Of the Private Sector (ICD)

Serve as research and training arm of the IDB; Lead development of the Islamic Financial

Services Industry (IFSI) to support socio-economic development of MCs;

Activities: training, research, advisory, capacity building, etc.

Boost trade among OIC Member Countries; Offer Shariah-compliant export credit

insurance and re-insurance; Provide political risk insurance to encourage

investment flows.

Promote private sector development in Member Countries;

Facilitate access to Islamic capital markets; Mobilize additional financial resources for

private sector; Promote entrepreneurship, and encourage

cross- country investments.

Advance trade across the Islamic world; Encourage intra-trade across OIC Member

Countries; Help businesses to better access trade finance; Provide them with the necessary trade-related

capacity building.

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I s l a m i c D e v e l o p m e n t B a n k

56 Member Countries across 4 Continents

20. Indonesia 21. Iran 22. Iraq 23. Jordan 24. Kazakhstan 25. Kuwait 26. Kyrgyz Republic 27. Lebanon 28. Libya 29. Malaysia 30. Maldives 31. Mali 32. Mauritania 33. Morocco 34. Mozambique 35. Niger 36. Nigeria 37. Oman

Regional Office in Dakar Covers 11 Countries in West Africa

Regional Office in Rabat Covers four Countries in North Africa

Regional Office in Almaty Covers 6 Countries in Central Asia

Regional Office in KL Covers 3 Countries in Far East Asia

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Credit Rating

Project Finance

Trade Finance

Insurance

Asset / Fund Management

Capacity Development

Research

Special Assistance & Scholarships

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I s l a m i c D e v e l o p m e n t B a n k

II. Project Cycle and Infrastructure Operations

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I s l a m i c D e v e l o p m e n t B a n k

Project Cycle

Programming

• MCPS - OCx

Identification

• MCPS – CTY

Formulation & Appraisal

• Sector Departments

Implementation and Monitoring

• Sector Departments

Evaluation

• Independent Evaluation

I s l a m i c D e v e l o p m e n t B a n k

IDB Infrastructure: Geographic Distribution

Middle East and North Africa

45%

Central Asia 24%

South & South East Asia

15%

Sub Sahara Africa14%

Regional 2%

US$ 29 billion

Aggregate Infrastructure Financing Since Inception

EGYPT

MOROCCO

IRAN

PAKISTAN

TURKEY

TUNISIA

BANGLADESH

BAHRAIN

UZBEKISTAN

AZERBAIJAN

SAUDI ARABIA

SENEGAL

TURKMENIS…

OMAN

INDONESIA

GABON

0 1000 2,000 3,000

(US$ millions)

Major Recipients Since Inception

I s l a m i c D e v e l o p m e n t B a n k

* Total Approvals less Cancellations

US$ 29 billion

Aggregate Infrastructure Financing Since Inception

Significant Scale Up (2006-14)

US$ 21.5 billion

Transport 32%

Energy 36%

Industry & Mining

13%

Urban Development

14%

Other 5%

1.2

1.5

2.1

2.5

2.9 2.6 2.5

2.7

3.5

IDB Infrastructure: Sector Distribution

I s l a m i c D e v e l o p m e n t B a n k

III. Transport Division

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I s l a m i c D e v e l o p m e n t B a n k

Transport Division

Key Focus Areas • Development of International Transport Corridors

– Trans-Sahara Highway (TSH)

– CAREC Transport Corridor

• Improve Transport Infrastructure

– Roads, Railways, Airports, Seaports

• Increase Accessibility

– Rural Networks

Significant Projects

Sr. No.

Project Description IDB Participation (US$ m) Country

1. Western-Europe – Western-China Road Corridor

224 Kazakhstan

2. Padma Multi-Purpose Bridge 140 Bangladesh 3. Akieni- Okondja Road 107 Gabon 4. Marrakech - Agadir Highway 106 Morocco 5. Regional Roads Development 65 Indonesia 6. Singrobo-yamou Soukro Highway (Phase III) 61 Cote d'ivoire

I s l a m i c D e v e l o p m e n t B a n k

I s l a m i c D e v e l o p m e n t B a n k

IV. Road Maintenance

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I s l a m i c D e v e l o p m e n t B a n k

Road Maintenance

1. Routine Maintenance: small tasks with frequently

• vegetation control, repairing,

• replacing signs and other roadside equipment,

• clearing drains and culverts.

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Road Maintenance

2. Periodic Maintenance: Maintenance undertaken at intervals of several years or more;

• resealing,

• resurfacing,

• overlay,

• reconstruction.

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Road Maintenance

• 3. Urgent Maintenance: unforeseen repairs requiring immediate attention, examples are;

• collapsed culverts, landslides that block roads

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Why road maintenance is so important?

• In order to sustain the benefits of road improvement, it must be followed by a well-planned program of maintenance.

• Without proper maintenance, road infrastructure can fall into disrepair, rapidly.

• This results with preventing positive outcomes of the longer term impacts of road improvements on development.

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Why «timely» maintenance is important?

• If defects are neglected and/or delayed;

• All road may fail completely,

• This requires full reconstruction (which means more and more investment),

• And...this is much more costly

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How the economy is related with this?

• Delayed maintenance; o Increased vehicle operating costs,

o Traffic safety is put at risk,

o Efficiency is reduced,

o Reluctance by transport operators to use the roads.

• Result; o a heavy burden on the economy,

o passenger and freight services are reduced,

o loss of economic and social development opportunities.

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IDB’s Experience on Road Maintenance

Case:

Kazakhstan

Aktobe-Makar Road Improvement Project

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Current poor road conditions

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Project Scope

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Project Scope

Civil Works

Reconstruction and maintenance - 156 km Road.

ESMP Implementation Road Safety Components

Consultancy Services

Construction supervision (ESIA) and E&S Management Plan

(ESMP) supervision Road Safety Audit

Institutional Support

Project Management Consultant

Capacity Building for EA

Financial Audit

Financial audit of all project components.

I s l a m i c D e v e l o p m e n t B a n k

Project Components

1. Civil Works

2. Consultancy Services

3. Road Maintenance Equipment: including the Axle Load Control equipment for ensuring sustainability of the project.

3. Land Acquisition ( by GoK)

• Total Cost USD 273m

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Outputs

• 156 km national road (4 lanes from km 11- 100, and 2 lanes from km 100 - 160) by 2021. Carriageway width is 7.5 m shoulder width is 1.5-3.75 m.

• 50% reductions in accidents

• 30% decrease in vehicle operating costs

• Average speed from 40 km/hr to 80km/hr

• Better, faster and safer transport

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THANK YOU