The role of multilateral development banks in improving road safety and road transport efficiency
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The role of multilateral development banks in improving road safety and road transport efficiency. Road Transport Professional Training May 8 th , 2012 Amman, Jordan. Dr. Walid Abdelwahab Director, Infrastructure Islamic Development Bank. Outline. Introduction: MDBs and road transport

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The role of multilateral development banks in improving road safety and road transport efficiency

The role of multilateral development banks in improving road safety and road transport efficiency

Road Transport Professional Training

May 8th , 2012

Amman, Jordan

Dr. WalidAbdelwahab

Director, Infrastructure

Islamic Development Bank


Outline

Outline

Introduction: MDBs and road transport

Importance of road safety and road transport efficiency

MDB Shared approach to Road Safety: the Decade of Action

Selected initiatives for efficient and safe road transport

Conclusions


Outline1

Outline

Introduction: MDBs and road transport

Importance of road safety and road transport efficiency

MDB Shared approach to Road Safety: the Decade of Action

Selected initiatives for efficient and safe road transport

Conclusions


Introduction

Introduction

Cumulative project financing 1975-2010

Islamic Development Bank

  • Transport is a priority for most MDBs

  • Road transport still attracts the lion share of MDB financing

  • But change of paradigm, road transport is not just about road construction and rehabilitation:

    • Road maintenance

    • Road safetyNew priorities for better aid

    • Transport facilitationeffectiveness

    • Systems and Technology


Outline2

Outline

Introduction: MDBs and road transport

Importance of road safety and road transport efficiency

MDB Shared approach to Road Safety: the Decade of Action

Selected initiatives for efficient and safe road transport

Conclusions


Importance of road safety and road efficiency

Importance of road safety and road efficiency

…from bad to worse !!

Source: Chartsbin

Road traffic Death rates per 100,000 population

Source: WHO

Road safety

Road traffic fatalities forecast to rise from nearly 1.3 million deaths each year to more than 1.9 million by 2020

Developing countries most affected : account for > 90% of casualties from road deaths!


Importance of road safety and road efficiency1

Importance of road safety and road efficiency

…from bad to worse !!

Source: International Energy Agency

Environmental efficiency

With the fast-pace development of LDCs and MICs, CO2 emissions will soar to unsustainable levels

Developing countries will become primary contributor by 2030

Road transport is the most inefficient land transport mode (vs. rail and inland water transport)

Source: Texas transportation institute


Importance of road safety and road efficiency2

Importance of road safety and road efficiency

…far behind!

OECD countries > 100,000 miles

USD cents / Tkm

Operational efficiency

Trucking is very inefficient in LDCs as compared to OECD because of physical and non-physical barriers to trade

High vehicle operating costs because of poor road condition

High transport prices because of market inefficiencies in some regions

Source: World Bank


Importance of road safety and road efficiency3

Importance of road safety and road efficiency

…far behind!

Source: CSIR, South Africa, 2010

Logistics efficiency

Total logistics costs as a percentage of GDP reaches 20% in developing countries which impacts the their competitiveness.


Outline3

Outline

Introduction: MDBs and road transport

Importance of road safety and road transport efficiency

MDB Shared approach to Road Safety: the Decade of Action

Selected initiatives for efficient and safe road transport

Conclusions


Mdb shared approach to road safety the decade of action

MDB Shared approach to Road Safety: the Decade of Action

Global initiative launched on 11 May 2011,

19 April 2012, UN resolution to improve global road safety.

National and local launches of the Decade of Action for Road Safety 2011-2020 encouraged in all member countries

  • Joint Statement by the MDBs as international development partners in managing road safety

  • Scaling up and mainstreaming road safety in MDB activities

  • Collaborative effort in managing road safety

  • Establishment of a global Road Safety Incentive Fund to leverage MDB support

Joint effort of Multilateral development Banks


Decade of action 2011 2020

Decade of Action 2011-2020

Reasons to Act:


Shared approach to road safety the decade of action

Shared approach to Road Safety: the Decade of Action

  • Establishment of a global Road Safety Incentive Fund to be managed jointly by the MDBs

  • Outline - May 2012

  • Proposal- Sept 2012

  • Launch- 2013


Mdb shared approach to road safety

MDB Shared Approach to Road Safety

Indicators/criteria


Other examples of mdb interventions in road safety

Other examples of MDB interventions in Road safety

Road Safety Action Plan – approved in January 2012, it serves as a guide in mainstreaming road safety in ADB’s transport operations

Revised EIB Transport Lending Policy - “….all road projects are to be subject to Road Safety Audits in line with the principles of the EU Directive …”.

Capacity building and technical assistance

Expert Group Meeting on Financing Transport Infrastructure Projects and Road Safety in the ESCWA Region

3rd IRU-LAS-AULT Seminar on International Carriage of Dangerous Goods by Road- IRU Academy Seminar on Road Transport Professional Training

Technical Assistance Grant to the Arab Union of Land Transport


Outline4

Outline

Introduction: MDBs and road transport

Importance of road safety and road transport efficiency

MDB Shared approach to Road Safety: the Decade of Action

Selected initiatives for efficient and safe road transport

Conclusions


Selected initiatives for efficient road transport

Selected initiatives for efficient road transport

Environmental efficiency

  • Sustainable transport or sustainable mobility strategies

    ex. GIZ A-S-I approach

  • Moving freight with better trucksOECD / ITF initiative


Selected initiatives for efficient road transport1

Selected initiatives for efficient road transport

  • Reduce the amount of travel activity

    Consolidation centers and logistics platforms

    Better use of multimodal transport


Selected initiatives for efficient road transport2

Selected initiatives for efficient road transport

Operational efficiency

MDBs recognize the need to:

  • Finance maintenance activities and programs for sustainable reduction of vehicle operating costs

  • Work on transport services in addition to infrastructure

    “Transport services have been neglected for years on the assumption that reduction in VOCs would automatically lower transport prices… need to lower the price of transport so that they benefit the economy at large rather than a group of transport providers, “

    World Bank, Transport prices and costs in Africa, 2008


Selected initiatives for efficient road transport3

Selected initiatives for efficient road transport

Logistics efficiency

MDBs are working to:

  • Promote National Logistics Strategies

    Ex) National Logistics Strategy of South Africa

    Morocco Strategy for the Logistics Competitiveness

  • Reduce non-physical barriers to trade

    Trade and transport facilitation initiatives

  • Develop cross-border trade infrastructure and multimodal transport


Selected projects for efficient and safe road transport

Selected Projects for efficient and safe road transport

  • LawderMukairas Road, Yemen (طريق لودرمكيراس)

  • Partially financed by IDB through $7M Loan, 1990 -1997


Selected projects for efficient and safe transport

Selected Projects for efficient and safe transport

  • AQABA COASTAL HIGHWAY – JORDAN

  • construction of a highway consisting of two parallel roads four lane, 17 km long, to separate the traffic of heavy goods vehicles heading to and from seaport from the local and international traffic, to reduce the congestion of traffic and to improve safety.

  • IDB's Contributions USD 31.63 M , 2001 -2005


Selected projects for efficient and safe transport1

Selected Projects for efficient and safe transport

  • Taza – Oujda Highway, Morocco

    Interchange for safer traffic flow and grade separation with rail line.

  • The Taza - Oujda highway segment (197-km) will ensure the connection with the capital Rabat and the economic hub Casablanca. The project will improve safety and efficiency.

  • IDB financing US$ 135 M


Selected projects for efficient and safe transport2

Selected Projects for efficient and safe transport

  • HadathEl Hubba Road, Lebanon

  • Improve national/local roads with significant truck traffic

  • IDB financing: US$ 16 M


Selected projects for efficient and safe transport3

Selected Projects for efficient and safe transport

  • Bir El Heith – Qartabaroad, Lerbanon

  • Narrow, mountainous to be widened and re-aligned for safer operation especially by trucks (under construction).

  • IDB financing: US$ 12 M


Conclusions

Conclusions

MDBsrole in road trasportischanging: from infrastructure to widerconsideration of safety and efficiency

Transport isplaying a largerrole in economicdevelopment, but itsnegative impacts (economic, social and enviornment) are worrying

More focus on transport services, logistics and addressing non-physicalbarriers to enhanceeconomiccompetitiveness


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