Progress Report (2012-2013) of the MDB Working Group on Sustainable Transport

8/13/2019 Progress Report (2012-2013) of the MDB Working Group on Sustainable Transport

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Progress Report (20122013) of theMDB Working Group on SustainableTransport

December 2013


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This is a joint document authored by staff at the African Development Bank (AfDB), Asian Development Bank (ADB),CAF Development Bank of Latin America (CAF), European Bank for Reconstruction and Development (EBRD),European Investment Bank (EIB), Inter-American Development Bank (IADB), Islamic Development Bank (ISDB) andthe World Bank (WB). The views expressed herein do not necessarily represent the views of these institutions, theirBoard of Directors, Management, or staff, and may be preliminary in nature. In making any designation of orreference to a particular country, territory or geographic area in this document, these institutions do not intend tomake any judgments as to the legal or other status of any territory or area.


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Contents

Executive Summary ................................................................................................................................... 4

1 Background and Introduction ........................................................................................................... 5

1.1 Why are we focusing on sustainability in the transport sector?.......................................... 5

1.2 What did we commit to at Rio+20, and why?......................................................................... 7

1.3 What has happened since Rio+20? ........................................................................................ 7

1.4 What is this report about? ......................................................................................................... 9

2 Our approach to measuring progress on sustainable transport................................................ 10

2.1 What is our common approach to measure progress?...................................................... 10

2.2 What is being assessed? ........................................................................................................ 10

2.3 How do we rate the sustainability of our projects?.............................................................. 10

2.4 How do we assure quality of our assessments?................................................................. 11

3 Assessment of our work on sustainable transport in 2012........................................................ 12

3.1 Overall assessment ................................................................................................................. 12

3.2 African Development Bank ..................................................................................................... 15

3.3 Asian Development Bank ........................................................................................................ 17

3.4 CAFDevelopment Bank of Latin America ........................................................................ 19

3.5 European Bank for Reconstruction and Development....................................................... 20

3.6 European Investment Bank .................................................................................................... 23

3.7 Inter-American Development Bank........................................................................................ 25

3.8 Islamic Development Bank ..................................................................................................... 27

3.9 World Bank ................................................................................................................................ 29

4 Conclusion and next steps .............................................................................................................. 31

Annex 1: Initial Framework for the Assessment of the Sustainability of MDB-supported

Transport Sector Operations .................................................................................................................. 32

Background ........................................................................................................................................... 32

Assessment Framework and Standards........................................................................................... 33

Action Plan on Sustainable Transport Assessment........................................................................ 35

Annex 2: Lists of projects approved in 2012 by each MDB............................................................... 37

African Development Bank ................................................................................................................. 37

Asian Development Bank .................................................................................................................... 38

CAFDevelopment Bank of Latin America .................................................................................... 39

European Bank for Reconstruction and Development................................................................... 40

European Investment Bank ................................................................................................................ 41

Inter-American Development Bank.................................................................................................... 42

Islamic Development Bank ................................................................................................................. 43

World Bank ............................................................................................................................................ 44


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Executive Summary

In June 2012, at the Rio+20 United NationsConference on Sustainable Development(hereafter Rio+20), our eight institutions

delivered the joint statement Commitmentto Sustainable Transport (hereafter theRio+20 Commitment). In the Rio+20Commitment, it was announced that weexpect to provide more than $175 billion ofloans and grants for transport in developingcountries over the coming decade, and thatthis support will be increasingly orientedtowards sustainable transport. Recognizingthe need for a results-based approach tosupporting sustainable transport, we alsocommitted ourselves to introducing annual

reporting on our sustainable transport-related lending and to developing commonarrangements for this purpose.

Since Rio+20, our multilateral developmentbanks (MDBs) have taken several majorsteps to operationalize the Rio+20Commitment. The first year of ourCommitment focused primarily on:

Concretizing the workingarrangements,

Developing a common framework for

monitoring and reporting, and Initiating work to monitor the

sustainability of our transportoperations.

This report provides only a quick snapshotof our activities in 2012 the first year ofour 10 year Commitment. This is the firsttime that our eight MDBs are reportingcollectively on our work in the transportsector. As such, the assessment of ourtransport operations contained in this report

is very much a work in progress, and shouldbe considered as such.

The above notwithstanding, we find that weare generally on track to meeting ourRio+20 Commitment. In terms of volume,we approved collectively more than $20

billion in financing in 2012. 1 Beyondfinancing, our MDBs are working toleverage change through capacity building,knowledge sharing and policy dialogue.

While preliminary in nature, we have

completed the development of a commonmonitoring and reporting framework fortransport projects, and this has been pilot-tested by several of our MDBs. These testsshow that the framework is readilyapplicable to the projects supported by mostof our MDBs, and provides a useful tool tounderstand the relative strengths andweaknesses of different projects withregards to their sustainability.

In the years ahead, we will build further on

these initial achievements to implement ourRio+20 Commitment.

1Calculated on the basis of approvals in 2012,except for the Islamic Development Bank whichreports on approvals in the lunar Hijrah Year (H)covering the period between November 2011 toNovember 2012, and the World Bank whichreports on its Fiscal Year 2013, or the periodbetween July 1 2012 and 30 June 2013.

In the first year of our Rio+20

Commitment, we have concretized our

working arrangements, developed a

common framework for monitoring and

reporting, and initiated work to monitor

the sustainability of our transport

operations


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1 Background and

Introduction

1.1 Why are we focusing on

sustainability in the transport

sector?

1. Transportthe movement of peopleand goods from one place to another is abasic requirement for the functioning ofhuman society, and is intrinsic to theproduction and use of goods and services.The transport sector directly contributes5%10% of gross domestic product (GDP)in most countries, and indirectly enables theother sectors to contribute to social and

economic development. By helping toexpand economic opportunities andservices, and providing people with accessand mobility, transport contributes topoverty reduction and inclusive growth. Yettransport also consumes resources andoften has negative side effects, includingcongestion, air pollution, and road crashes.

Transport is already responsible for nearly aquarter of energy-related CO2.

2. On balance, the contribution oftransport to sustainable developmentdepends on how accessible and affordable

it is for people to use, what resources itconsumes, and what negative side effects ithas. It is therefore necessary to select thetypes and mix of transport that will fullyrealize its positive contribution and minimizenegative effects.

3. Based on these considerations, ourinstitutions have been adjusting our supportfor the sector to focus on sustainabletransport transport that is accessible,affordable, efficient, financially sustainable,

environment friendly, and safe. These arereflected in the policies, strategies andinitiatives of our institutions, as summarizedin the table overleaf.

We have been adjusting our support for the

transport sector to focus on sustainable

transport transport that is accessible,

affordable, efficient, financially sustainable,

environment friendly, and safe


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Table 1: Key policies, strategies and initiatives of our organizations in support of moresustainable transport

Institution Policies, strategies and initiatives Characteristics

AfricanDevelopmentBank

Urban Development Strategy

Transport Policy

Provides a new focus on urban transport

Expected to elevate the current operational focus on

sustainable transport to a policy level

AsianDevelopmentBank

Sustainable Transport InitiativeOperational Plan (201020)

Focuses ADBs future transport operations onsustainable transport

CAFDevelopmentBank of LatinAmerica

Observatory of Urban Mobility in LatinAmerica

Supports development of a comprehensive strategyfor urban mobility and road safety

European BankforReconstructionandDevelopment

Transport Strategy & Municipal andEnvironmental Infrastructure Strategy

Sustainable Energy Initiative

Support safe, secure and sustainable transportsystems which embody market principles (TheTransport Strategy covers the approach tointerurban transport whilst urban transport iscovered under the Municipal & EnvironmentalInfrastructure Strategy)

Promotes energy efficiency, including in thetransport sector

EuropeanInvestmentBank

Transport Lending Policy Emphasizes sustainable transport in line with theEuropean Union (EU) transport policy

Inter-AmericanDevelopmentBank

Climate Change Strategy

Infrastructure Strategy

Transport strategic areas: Road Safety Regional Environmentally

Sustainable Transport Logistics Intelligent Transport systems Transport Mega Projects

Sustainable Emerging Cities Initiative

Mainstreaming of Mitigation and Adaptation

Support member countries in infrastructure planning,construction, and operation in order to provide highquality infrastructure that supports sustainable andequitable economic growth, increasescompetitiveness and promotes innovation.

Supports the inclusion of road safety, sustainabletransport, logistics and ITS in transport projects in itsmember countries

Aims at supporting sustainability in medium sizedcities considering sustainable growth, land use,transport and climate change

IslamicDevelopment

Bank

IDB Group InfrastructureStrategic Plan 1431H-1433H

Alleviating poverty and accelerating thedevelopment of member countries through the

financing of efficient, safe and sustainable transportnetworks is a strategic priority

World Bank Transport business strategy for 200812:Safe, Clean, and Affordable Transportfor Development

Emphasizes sustainability and the role of transportin achieving the Millennium Development Goals


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1.2 What did we commit to at

Rio+20, and why?

4. In June 2012, at the Rio+20 UnitedNations (UN) Conference on Sustainable

Development (hereafter Rio+20), our eightinstitutions delivered the joint statementCommitment to Sustainable Transport(hereafter the Rio+20 Commitment)2. Thiswas with the aim to:

(i) Draw attention to the essentialrole that sustainable transportplays in sustainabledevelopment,

(ii) Indicate our commitment toprovide increased support for

sustainable transport indeveloping countries in future,and

(iii) Call upon the internationalcommunity to embracesustainable transport as a keysectoral focus of the new globalagenda for sustainabledevelopment.

5. Building on our history of support fortransport, it was announced that we expect

to provide more than $175 billion of loansand grants for transport in developingcountries over the coming decade, and thatthis support will be increasingly orientedtowards sustainable transport.

6. We also recognized the need for aresults-based approach to supportingsustainable transport. We committedourselves to introducing annual reporting onour sustainable transport-related lendingand to developing common arrangements

2 The Rio+20 Commitment was also registered with

the United Nations as a Voluntary Commitment ina shortened format as specified by the organizersof the Rio+20 Conference. This is available at:http://www.uncsd2012.org/voluntarycommitments.html. The main point of reference for the Rio+20Commitment continues to be the full jointstatement, available at:http://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdf

for this purpose. This would be inpartnership with the Partnership onSustainable Low Carbon Transport(SLoCaT), a multi-stakeholder partnershipof over 80 organizations representing UNorganizations, multilateral and bilateral

development organizations, non-governmental organizations (NGOs),foundations, academia and the businesssector.

1.3 What has happened since

Rio+20?

7. Since Rio+20, we have takenseveral major steps to operationalize the

Rio+20 Commitment. The first year of ourCommitment focused primarily on: Concretizing the working

arrangements Developing a common framework for

monitoring and reporting Initiating work to monitor the

sustainability of our transportoperations

Concretizing working arrangements

8. In October 2012, on the occasion ofthe World Bank (WB) InternationalMonetary Fund (IMF) meeting in Tokyo, theHeads of Asian Development Bank (ADB),

African Development Bank (AfDB),European Bank for Reconstruction andDevelopment (EBRD), EuropeanInvestment Bank (EIB), Inter-AmericanDevelopment Bank (IADB), and WB met,and unanimously endorsed a proposal by

ADBs president, to set up a working groupto jointly monitor and report on progress

toward fulfilling our Rio+20 Commitment.While CAF Development Bank of Latin

America (CAF) and Islamic DevelopmentBank (ISDB) were not part of this meeting,their integral role in the Rio+20 commitmentand the importance of their membership tothe working group were fully recognized.
http://www.uncsd2012.org/voluntarycommitments.htmlhttp://www.uncsd2012.org/voluntarycommitments.htmlhttp://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdfhttp://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdfhttp://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdfhttp://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdfhttp://www.adb.org/sites/default/files/news/statement-commitment-sustainable-transport.pdfhttp://www.uncsd2012.org/voluntarycommitments.htmlhttp://www.uncsd2012.org/voluntarycommitments.html


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Initiating work to monitor the

sustainability of our transport operations

12. Based on the adopted framework,each of our MDBs has initiated work toassess the sustainability of their transportoperations. Some MDBs have applied themonitoring to their entire transport approvals

for 2012, whereas other MDBs have doneso for a select number of projects. As agroup, our eight institutions are currentlytesting various approaches, the results ofwhich will allow for further enhancements tothe process from 2014 onwards.

Figure 4: Selected priorities of MDBs transport work in various regions of the world(non-exhaustive)

1.4 What is this report about?

13. This report presents the level ofprogress made by our eight MDBs in thefirst year of implementing the Rio+20Commitment. Our work is ongoing. As such,the report provides a snapshot ofdevelopments to date, and serves as abaseline for future reports to be developedon an annual basis. Our institutions will

continue to enhance aspects of monitoringand reporting in the coming years, drawingupon the lessons from this report.

14. The work by our eight MDBs is wide-ranging and diverse (Figure 4). As such, thereport makes no attempt to fully capture all

activities conducted by our MDBs in supportof the Rio+20 Commitment.

15. This is the first time for our eightMDBs to report collectively on our work inthe transport sector. The report has beendeveloped as a collective effort throughinputs by staff of all eight MDBs to theWGST and TWG. The report also benefitedfrom inputs from Cornie Huizenga and

Michael Replogle representing the SLoCaTpartnership.

This is the first time that our eight MDBs

are reporting collectively on our work in

the transport sector


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2 Our approach to measuring

progress on sustainable

transport

2.1 What is our common

approach to measure progress?

16. The framework we have developedsets out a common set of principles that aresufficient to enable common reporting, aswell as good practices that facilitate theaggregation of results and improve thequality and usefulness of information foroperational purposes. The key principlesunderpinning the framework are describedbelow.

2.2 What is being assessed?

17. Our assessment is project based,and is primarily concerned with thesustainability of the projects that we finance.For this first progress report, we havegenerally based the assessments onprojects approved in 2012.5

18. We recognize that the impacts of ourwork go beyond simply the projects that wefinance. Through or efforts in awarenessraising, capacity building, policy dialogueetc., we are providing the catalytic impactneeded to mainstream sustainability in thetransport sector of our client countries.Information on such activities is alsoincluded in this report.

2.3 How do we rate the

sustainability of our projects?

19. The MDB joint statement providesthe following definition of sustainabletransport: transport that is accessible,affordable, efficient, financially sustainable,

5 The report also draws upon examples of recently

completed projects, which were approved before2012.

environment-friendly, and safe. Whilenoting that many definitions of sustainabletransport and of sustainability itself exist, wefind that all definitions implicitly refer tothree pillars of sustainability, i.e. economic,social, and environmental sustainability.

These dimensions provide the basis for ourframework. We also note that the threeaforementioned pillars can becomplemented by a fourth, representing therisk to the sustainability of the projects,linked to the soundness of the project andthe capacity of the local institutions toimplement the project and sustain itsbenefits.

20. Each dimension of sustainability hasbeen translated into a criterion for

assessment. The assessment can consider(i) the net positive or negative impactsdirectly attributable to the project, and (ii)the performance of the project whencompared to sector common practices. Thedefinitions provided below are broad toallow for individual customization accordingto each MDBs corporate objectives.

Economic effectivenessrefers to boththe significance of the expectedeconomic impacts over the lifecycle of a

project, and the efficiency with whicheconomic resources are used to deliverthem.

Social sustainability describes theextent to which project will benefit thepoor, vulnerable and marginalized;contribute to creating safe and socially-inclusive communities; and minimizeadverse impacts, such as resettlement.

Environmental sustainabilitydescribes the net environmentaloutcomes of a project, such as reducing

transport emissions and pollution,conserving the natural and builtenvironment, minimizing waste ofnatural resources, and communitiesresilience and adaptation to climateeffects.

Risk to sustainability or projectsoundness measures the risk that


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expected project benefits may not berealized or maintained, due to e.g. weakinstitutions, lack of financing, or simplyuncertainty in the appraisal.

21. Subcriteria are also developed under

each of the four criteria above. Somesubcriteria are common to all MDBs, whileothers reflect the MDBs specific corporateobjectives. Examples of possible subcriteriaare:

Under economic effectiveness:economic viability

Under social sustainability: affordability,safety, and accessibility

Under environmental sustainability:greenhouse gas (GHG) emissions, air

pollution Under risk to sustainability or project

soundness: financial sustainability,institutional capacity (includingmaintenance), design risk anduncertainty

22. The above framework recognizesthat sustainable transport projects have netpositive economic, social and environmentalimpacts. It recognizes that projects mayhave limited and acceptable trade-offs

between the dimensions of sustainability.

23. Project impacts are evaluated withreference to a without-project case, whichcan be considered to be the most likelyfuture situation, in the absence of theproject and of any alternative investment ofsimilar nature. Qualitative ratings can beassessed for each criterion assessed, andfor projects as a whole.

24. Some of the MDBs that have been

able to conduct rating of their entire 2012approved projects have aggregated theratings to allow for an analysis at portfoliolevel. Other MDBs have provided aqualitative evaluation of their overallportfolio, in addition to or as a substitute forthe aggregate rating at this stage.

2.4 How do we assure quality of

our assessments?

25. The assessments provided in thisreport rely on a combination of self-

assessments, and assessments by internalor external experts, independent evaluationdepartments, or auditors. When determiningthe process followed, each MDB has soughtto ensure as much as possible therelevance, quality and impartiality of theassessments. To ensure coherencebetween assessments and to minimizesubjectivity, our MDBs also realize thebenefit of all assessments being reviewedby a single entity or group of people withinan MDB. As with other aspects of our work,

this is work in progress.

Box 1 : How to treat co-financed projects?

In the case of projects co-financed by morethan one of our institutions, the ratings haveto the extent possible been discussedamong the MDBs involved. Given that this isthe first year of reporting, differentinterpretations of the same project may stillbe present. We recognize this as an areafor further consideration from 2014

onwards.


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3 Assessment of our work on

sustainable transport in 2012

26. This chapter presents an overallassessment of the MDBs work in relation to

sustainable transport, as well as individualassessments of each MDB, for the first yearof our Rio+20 Commitment.

3.1 Overall assessment

Investing in sustainable transport

projects (loans and grants)

27. Across our eight MDBs, we

approved more than $20 billion for transportin 2012. Notwithstanding yearly fluctuationsin our portfolios, this shows that we aregenerally on target to meeting the $175billion of support for transport in developingcountries over the 10 year commitmentperiod. This financing will support a range oftransport modes, including roads, urbantransport, railways, air transport, watertransport and other subsectors.

28. In analyzing these investments, anumber of patterns can be observed.

There is generally a growing level ofinvestments in urban transport (e.g. busrapid transit, mass rapid transit etc.),reflecting rapid urbanization in many ofour client countries.

In the road subsector, which remains anintegral part of our MDBs transport work,more attention is being given tosustainability. This includes work tomake roads more safe (road safety),

resilient (climate adaptation) andeffective in the long run (assetmanagement).

Many of our MDBs lend support totransport networks that transcendbeyond one country, thereby supportingcross-border trade and regionalintegration.

29. We have initiated assessment of thesustainability of transport investmentssupported by our MDBs. This is seen fromthe analysis undertaken by some of ourMDBs. For example:

ADB, utilizing its STAR Framework,rated 63% of its transport projectsapproved in 2012 as moderatelysustainable or above.6 A further 29%was rated marginally sustainable. Only8% of projects were rated moderatelyunsustainable, and no projects wererated unsustainable or lower. Across allprojects, the aspects of sustainabilitythat were strongest were (i) economic,(ii) social and (iii) environmental in thatorder.

EIB, utilizing its REsults Measurement(REM) Framework, rated 30% of itstransport projects approved in 2012outside Europe as excellent in terms ofquality and soundness. The remainingprojects were rated as good. The ratingis based on various indicators, includingsocial and environmental compliance,carbon footprint and the energyefficiency of the project.

IADB noted that 24% of the totalapproved transport operations in 2012

had climate change mitigationcomponents.

6Projects assessed exclude TAs, TA loans andpolicy based loans. STAR utilizes a seven-pointscale for its scoring, ranging from highlyunsustainable, unsustainable, moderatelyunsustainable, marginally sustainable, moderatelysustainable, sustainable and highly sustainable.


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Going beyond projects: capacity

building, knowledge solutions and policy

dialogue

30. While MDBs are generally regarded

as financial institutions, the type of supportwe provide goes beyond financial resources.Given that our lending can at best onlyfinance a few percent of a countrysinvestment needs, an important aspect ofour support is to leverage enhancedapproaches in our client countries bycombining financing with capacity building,knowledge solutions and policy dialogue.

31. Capacity building has been providedby all of our MDBs. This benefits not only

government agencies, but also privatesector partners. Several notable examplesinclude:

Support for Mozambique in planning,

designing and implementing resilient

infrastructure (AfDB)

Safe driving training for employees of

the trolleybus company of Chisinau,

Moldova (EBRD)

Training programs for staff and

developing member country officials onvarious aspects of sustainable transport

(ADB)

The Leaders in Urban Transport

Planning Program that seeks to create

awareness of the comprehensive nature

of urban transport planning amongst

leaders and develop capacity to

generate sustainable urban transport

projects (WB)

Training modules on road safety

provided for both staff and client

countries (WB)

32. Knowledge is being generated andshared by our MDBs for the benefit of ourclient countries. Notable examples include:

Diagnostics of railway concessions in

Africa (AfDB)

Regional platform for sharing knowledgeand transferring new ideas andinnovation (IADB)

Guidance on how policies can beorganized to generate revenues andallow an affordable transition to low

carbon transport (WB)

33. MDBs have been engaging in policydialogue to build support and buy-in fromlocal stakeholders, on critical aspects ofsustainable transport. Notable examplesinclude:

Promoting gender equality and accessto services for all (EBRD)

Observatory of Urban Mobility informingpolicy decisions on urban transport in 15

cities in 9 countries (CAF)

Leveraging change through partnerships

34. The work of our MDBs is amplifiedby working together with key developmentpartners. These include bilateral donors,philanthropic organizations, academia andcivil society organizations. Many of ourMDBs are members of SLoCaT.

35. Our MDBs are increasingly working

together in partnership, to address transportdevelopment challenges in a harmonizedmanner. The example of the MDB RoadSafety Initiative is provided in the boxoverleaf.

In 2012, our eight MDBs approved more

than $20 billion for transport, thus

putting ourselves on target to meet the

Rio+20 Commitment


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Gearing ourselves up for sustainable

transport

36. Our MDBs are also collectivelyworking together to ensure that our skills,business processes and policies aresupportive of sustainable transport. Forexample:

Most of our MDBs are bound bysafeguard policies on indigenouspeoples, resettlement, and theenvironment.

Many of our MDBs are undertakingefforts to mainstream gender intransport projects.

A growing amount of attention is beingplaced on climate risk screening andGHG accounting.

Staffing is being adjusted among manyof our MDBs to ensure that sufficientskills exist in new areas of our work,including the above.

Box 2 : MDB Road Safety Initiative

Low- and middle-income countries(LMICs) are experiencing steepincreases in deaths and injuries due toroad crashes. Indeed, 90% of the worlds

road deaths are occurring in LMICs.Annual road deaths already exceedthose caused by some major diseases.

Cognizant of these challenges, ourMDBs launched the MDB Road SafetyInitiative to scale up our support for theUN Decade of Action for Road Safety,20112020and to develop a coordinatedprogram of engagement in our clientcountries.

Under this initiative, our MDBs areworking to:

Develop shared guidelines whichcan allow for a more consistentapproach to embedding roadsafety issues in our projects

Share training opportunities, bothfor our own staff as well asofficials from our client countries

Help mobilize further financialresources through the proposed

MDB Global Road SafetyIncentive Fund


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3.2 African Development Bank

Challenges

37. Achieving regional economic

integration and developing cross-bordertrading continues to be a major challengefor many African countries. Regionaltransport corridors are not only means forinterregional mobility and trade, but theyalso play a major role in developing theglobal competitiveness of Africas differentregions, and in addressing challenges offood security and poverty. In addition tolimited provision of infrastructure, thesustainability of infrastructure is a majorchallenge for the continent. Poor

maintenance, as well as inadequateconnectivity, results in high transport costs,which constrains doing business in Africancountries, and limits access to socialservices. The physical sustainability oftransport infrastructure is also threatened byvulnerability to extreme climate changeevents.

AfDB and Transport in 2012

38. In 2012, AfDB continued quantitative

and qualitative scaling up of its transportsupport to its member countries indeveloping regional transport corridors, andhelping some member countries transitiontowards greener transport systems.

Halfof the transport operationsapproved by AfDB in 2012 were for regional

transport infrastructure.

In total, AfDB approvals in the sector

amounted to UA 612.02 million,7

equivalent

to $941.31 millionin loan andgrant operations (this includes $89 million

through private-sector window).

7 The AfDB uses a Unit of Account (UA) equivalent

to the IMFs Special Drawing Rights (SDR) as itsreporting currency.

All the approvals were in the roads sub-sector.

39. Several of these projectsincorporated transport and trade facilitationmeasures that aim at complementing the

provision of physical infrastructure with softmeasures targeting the removal of non-physical barriers to trade along transportcorridors.

40. ForAfDBsleast developed membercountries, improving national connectivityand rural accessibility remains a centralchallenge required for poverty reduction andeconomic development. The constructioncost of the required transport infrastructurepresents a huge burden to the relatively

fragile economies of these countries.Therefore, through its Fragile States Facility(FSF), AfDB has embarked on supportingthese countries to develop their basicinfrastructure. In 2012, and in line with

AfDBs commitment to support its leastdeveloped member countries, two of theapproved transport sector operationsbenefited from grant allocations from theFSF. These were in Sierra Leone and Togo.

Shifts in Trends

41. Two recently approved strategiesare anticipated to have a notable impact on

AfDBssupport to the transport sector in thecoming decade: The 10 Year Strategy andthe Urban Development Strategy.Importantly, AfDBs new Transport Policyand Transport Strategy are both underpreparation. These strategies and policydocuments will play a big role in shaping aqualitative shift in AfDBs support fortransport, with increased emphasis

expected to be placed on transitioning toinclusive and green growth.


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Figure 5: AfDBs recently approved UrbanDevelopment Strategy. The strategy is hoped

to bring increased focus on urbandevelopment projects including urban

transport

42. The AfDB also expects its role as aknowledge bank to gradually increase. In2012, it commenced several economic andsector works, including a study onpromoting the domestic constructionindustry, a study on diagnostics of railway

concessions in Africa and a study onassessing the quality of AfDB-financed roadprojects.

Figure 6: Nacala Road Corridor Project, Phase-III (Mozambique). The project was approved in 2012,and will be completed in 2018. Through co-financing with other development partners (Nordic

Development Fund), it introduces new components that will focus on building the countrys abilityto plan, design and implement road infrastructure that are resilient to extreme climate change

events


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3.3 Asian Development Bank

Operational context and strategic

approach

43. Transport in Asia and the Pacific stillneeds huge investments. Over the period201020 it is estimated that transportinvestments of more than $2.5 trillion will berequired in developing Asia. At the sametime, rising incomes are doubling the motorvehicle fleet every 5 to 7 years. This trend isresulting in a number of negative impacts,including congestion, energy consumption,air pollution and traffic collisions.

Figure 7: Motorization trends in Asia and thePacific (ADB and International Energy

Agency, 2011)

44. ADBs transport sector support ischanging to meet the new challenges facingour developing member countries. Guidedby its Sustainable Transport InitiativeOperational Plan (STI-OP), ADBs work in2012 included support for:

Urban transport, including three newprojects for BRT and two for metros

Regional transport corridors throughsubregional and regional cooperationprograms 8 seeking to complement

infrastructure with cross border tradeagreements

8 Includes but not limited to Central Asia Regional

Economic Cooperation (CAREC), Greater MekongSubregion (GMS) and Bay of Bengal Initiative forMulti-Sectoral Technical and EconomicCooperation (BIMSTEC) programs.

Water transport, including an inlandwaterway project in the PeoplesRepublic of China (PRC)

Mainstreaming road asset management,road safety and climate resilience inroad projects

In numbers: ADB and sustainable

transport in 2012

Total of 26loans/grants9and 45technical assistance projects approved.

Totaling $3.9billion of investment.

Serving 23 countries.More than20%of lending for urban

transport, up from a historical 2% (between2000-2009).

More than 100 staff contributing to theTransport Community of Practice.

Continued cooperation with9memorandum of understanding (MoU)

partners.

Figure 8: ADBs Sustainable TransportInitiative-Operational Plan

9Includes all approved projects in 2012 withtransport as primary sector. Excludes multisectorprojects with transport components, private sectoroperations and Information and CommunicationTechnology projects.


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Highlights from 2012

45. Implementing sustainable urbantransport: The Lanzhou Sustainable UrbanTransport project (approved in 2009) is

ADBs first BRT project. It has been

supporting the development of a BRTcorridor which opened in December 2012and now carries more than 280,000 personsper day.10Lessons from Lanzhou are beingused to develop BRT systems in other

Asian cities including Astana, Davao, Dhaka,Jinagxi Jian, Ulaanbaatar, and Yichang.

Figure 9: Lanzhou BRT

46. Enhancing our capacity throughtraining: In 2012, ADB provided training toits staff and developing member countryofficials in various aspects of sustainable

transport, including road safety, BRT,climate change, inclusive transport, ITS,road asset management, bicycle sharingsystems and transportation demandmanagement.

47. Promoting partnerships: An untoldpart of ADBs role in transport is to fosterpartnerships to deliver sustainable transportin Asia and the Pacific. In November 2012,

ADB held its third Transport Forum, whichattracted more than 500 participants from

across the world. This provided a venue forADB staff, DMC officials and keydevelopment partners to forge new ties anddevelop new ideas in support of sustainabletransport.

10In its capacity as an ADB MOU partner, the Institutefor Transportation and Development Policy hascontributed to the design and implementation of thisproject.

Assessment of the sustainability of 2012

lending

48. ADB applied the SustainableTransport Appraisal Rating (STAR)framework to assess the sustainability ofprojects approved in 2012.11

49. Most projects were assessed asmoderately sustainable or above. Urbantransport and water transport projectstended to score well compared to roadprojects. No railway projects were approvedin 2012. Across all projects, the aspects ofsustainability that were strongest were (i)economic, (ii) social and (iii) environmentalin that order.

Figure 10: Results of assessment of ADBs2012 approved transport projects using

STAR

11 Excludes TAs, TA loans and policy based loans.

0123456789

10

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Unsustainable

Unsustainable

Moderately

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3.4 CAFDevelopment Bank of

Latin America

50. Transport in Latin America requireshuge investments. Latin America is the

continent with the highest level ofurbanization, with more than 80% of peopleliving in cities. Major investments areneeded to overcome problems of low qualitylevels of public transport, heavy congestion,high levels of pollution, low efficiency in fuelconsumption and very high rates of roadaccidents. Compared to a population growthrate of 2% per year, the annual growth rateof vehicle ownership is around 4.5% for carsand 14% for motorcycles. Outside cities,large transport investments are needed to

address the challenges of long distancesand huge geographical barriers. It isestimated that for the period 2010-2020 theneed for transport investment will be above$0.7 trillion.

51. To face these challenges CAF hasdeveloped since 2007 an Observatory ofUrban Mobility (OUM) covering the 25largest cities of the region. The OUMprovides information that helps publicauthorities to improve the quality of their

decision-making processes, and allows CAFto identify priority projects in these cities.Research and analysis is being undertakenon the quality of public transport; trafficperformance and congestion; energyconsumption per type of vehicle; andindustrial production of more efficientvehicles. Through these studies, CAF ishelping to advance efforts to attain thehighest levels of sustainability.

52. The work of the OUM was filed as

one of the Voluntary Commitments underthe Rio+20 UN Conference on SustainableDevelopment.12

12Available at:http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345

Figure 11: CAFs Observatory of Urban

Mobility (OUM)

53. In-depth research is underway inrelation to the use and safety of motorcycles.This has included regional collaboration withother agencies such as the Ibero AmericanObservatory of Road Safety (OISEVI) andthe Pan American Health Organization(PAHO). CAF is a member of the UN RoadSafety Collaboration (UNRSC).

54. In terms of specific projects, CAF is

financing the implementation of new urbantransport systems in Buenos Aires, Caracas,Guadalajara, Lima and Ro de Janeiro. CAFis also supporting system extension in BeloHorizonte, Bogot, Curitiba, Len, Ciudadde Mxico, Porto Alegre, Santiago and SoPaulo.

55. Among the more ambitious publictransport investments CAF is supportingare:

Metro of Panama City, Line 1, with14 km of extension and 13 stations,partially underground

Metro of Quito, Ecuador, with 23kmunderground, for which constructionstarted in December 2012. Thissystem will be integrated with therest of the public transport networkof the city including the BRT system(the 2nd built in Latin America)
http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345http://sustainabledevelopment.un.org/index.php?page=view&type=1006&menu=1348&nr=2345


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56. During 2012, CAF launched amultisectoral program for sustainable citiesunder the name of Cities with Future. Thisprogram aims at promoting cities that aremore inclusive, competitive, efficient and

sustainable. A first phase will include thecities of Guayaquil, Fortaleza, Lima, Quitoand Panama.

57. From 2007, CAF has developed theGeoSUR program, a digitalized geographicinformation system database for Latin

America that supports and facilitates thedefinition of projects, evaluation ofenvironmental and social impacts, work onnatural disasters, etc. Currently the programis concentrating efforts at local area level to

complement the work under the OUM.

Figure 12: CAFs GeoSUR program

58. GEOPOLIS is another program

launched in 2012 to generate knowledgeand information related to reduction of risksof natural disasters. The program focuseson institutional development for adaptationprograms, reinforcement and specializedmaintenance of infrastructure, and climateresilience in road projects.

3.5 European Bank for

Reconstruction and Development

59. The EBRD supports thedevelopment of efficient, reliable and secure

transport systems in its countries ofoperations which embody market principles,balance economic, environmental andsocial needs and are responsive to theneeds of industry and the individual.Spanning all key subsectors aviation,ports, railways, roads, shipping, urbantransport and logistics over the past fiveyears EBRD has more than doubled itsannual investments.

60. Sustainability is a key investment

theme for EBRD in the transport sectorgiven that it is fundamental to economicgrowth and the creation of well-functioningmarkets in the EBRDs region. As such,sustainability is a key strategic aim of boththe Transport and Municipal SectorStrategies. This focus is underpinned byEBRDs commitment to regional andnational integration, energy efficiency, roadsafety, inclusion and stakeholderengagement.

61. In 2012, EBRD signed 31 transporttransactions for a total EBRD commitmentof $2.04 billion. New business wasgeographically diverse from an investmentstandpoint, ranging from large, strategicPublic-Private Partnership (PPP)infrastructure projects in Russia, Turkey andUkraine, to relatively small-scale butnevertheless important port and rural roadsprojects in early transition countries such asMoldova and Tajikistan, or lending forlogistics equipment to the private sector.

EBRD invested across all transport modes,with most financing (56%) directed to low-carbon modes such as railways, seatransport and public transport.


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In numbers: EBRD and sustainabletransport in 2012

31loans approved, totaling $2.04

billionof investment.

EBRDs donors provided $20.3millionto support 48technical

cooperation projects, ensuring thesuccessful delivery of projects and key

sector reform.

EBRD approved financing in the transport

sector in 16countries.

Increased focus on the private sector:

40%of the portfolio, versus 10% in 2005.

More than $700 millioninvested inthe rail sector in 2012.

$692 millioncommitted under theSustainable Energy Initiative, with estimated

carbon savings over 350 kilotonsCO2per annum.

Figure 13: EBRDs modal distribution of 2012transport approvals


62. EBRD has historically responded tothe need for modernisation of the rail sectorby embarking on rehabilitation and sectorreforms of rail systems across Eastern

Europe. This focus on the rail sector waseven bigger in 2012, when EBRD investedmore than $700 million in key projectsinvolving railway corridor rehabilitation andthe purchase of modern and energy efficientrolling stock in the countries of South EastEurope, including the Former YugoslavRepublic of Macedonia, Montenegro, Serbia,Romania and Ukraine. A good example isthe $135 million EBRD loan signed in 2012for the rehabilitation of sections of CorridorX, the main north-south route running

through Serbia.

63. Underlining the importance of privatesector participation in railways reform,EBRD also committed $120 million to assistprivate freight transportation groups in theacquisition of new rolling stock.

64. In urban transport, the largest of thesix operations signed in 2012 was theDnepropetrovsk Metro extension project,co-financed with EIB, which will see Line 1

of the metro completed, with parallelinstitutional and commercial strengtheningof the metro company. EBRD is alsoproviding financing for new low-floortrolleybuses in the City of Balti, Moldovaand alongside the EIB, agreed a secondphase of financing to the Yerevan MetroCompany. Finally, EBRD financed animportant BRT project in Burgas, Bulgaria,as a complement to EU financing.

65. In Moldova, a $12 million loan was

extended to Danube Logistics to financefacilities at Giurgiuleti Port, the countrysonly port, and a $45 million loan wasextended to the Baltic Transhipment projectin Lithuania to transform the containerterminal into a transit and transshipmenthub, improving the efficiency of containershipments in the Baltic region.

39%

8%2%4%0%

35%

12% Roads

Airport

Shipping

Ports

Logistics

RailUrbanTransport


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66. In the road sector, the signingsranged from landmark PPP transactions torelieve traffic congestion in Istanbul (thenew tunnel under the Bosphorus Strait) andSt Petersburg (the Western High-SpeedDiameter) bringing significant environmental

benefits to these cities, to smaller roadtransactions which will bring regionalcorridors and rural roads to modernstandards in Albania, Armenia, Bosnia andHerzegovina, Moldova and Tajikistan.

Alongside the increasing focus on roadsafety as a key component of theinvestments in the road sector, EBRDparticipated in a number of road safetyinitiatives, which included hosting theannual meeting of the Commission forGlobal Road Safety at the EBRDs

Headquarters in November 2012 and thedelivery of a workshop on safe drivingamong employees of the trolleybuscompany of Chisinau, Moldova.

67. Safety was also a key theme ofEBRDs activities in the aviation sector,including a 41 million loan tothe UkrainianState Air Traffic Service Enterprise to bringits air navigation systems up to Europeanstandards.

68. In 2012 EBRD also introduced pilotinitiatives in the transport sector to ensuregender equality and access to services forall. As a result of these efforts, for example,the number of women employed in the

recently privatized IDO ferry company inIstanbul, Turkey tripled.

69. Technical cooperation (TC) fundsfrom donors are fundamental tounderpinning the promotion of sustainability

strategies. In 2012 EBRD activated its firstprogram for the promotion of sustainabletransport strategies among its clients ($2million) and approved additional TC funds tosupport the introduction of sustainablepolicies in Albania and new energymanagement systems in the rail sector inWestern Balkans.

Assessment of the sustainability of 2012

lending

70. The EBRD has traditionallyassessed the energy efficiency componentof the portfolio in the context of itsSustainable Energy Initiative (in 2012transport contributed around $700 million tothis Initiative). However, sustainability in thetransport sector encompasses a broaderrange of impacts, including environmental,social and economic issues. For this reason,EBRD has agreed on the key principles fora common evaluation framework with theother MDBs and going forward it willintroduce further reporting mechanisms tobetter reflect its contribution to thedevelopment of sustainable transportsystems.


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3.6 European Investment Bank


approach

71. The EIB engages in investmentprojects in support of EU external policiesfor development and cooperation in some160 non-EU countries throughout the world.One of EIBs lending priorities is climateaction. More than 25% of EIBs yearlyfinancing goes to investments that mitigategreenhouse gas emissions and improveadaptation to climate change, such asinvestments in sustainable transport modes.

72. Total EIB investments outside theEU to the transport sector in 2012 equaled

1.6 billion ($2 billion). Public transportmade up 63% of this volume. Wheninvestments in developing countries insidethe EU are included, then the total volumeof EIB investments in the transport sectortotals 4.2 billion ($5.4 billion), and thepublic transport share was 45%.

73. The EIB strives for the most efficient,economic and sustainable way of satisfying

transport demand. This requires a mix oftransport solutions, covering all modes. Inthis context and in line with EU policy, EIBprioritises investments in railways, inlandwaterways and maritime projects as theseare most promising in terms of reducinggreenhouse gas emissions per transportunit. The same applies to urban transportand inter-modal transport hubs.

In numbers: EIB investments in

transport in developing countries13

Total of 41loans approved.

4.2billion ($5.4 billion) of investment.

45%of lending to public transport, ofwhich 33%to urban transport and

12%to rail.

Figure 14: Paper on EIB lending in thetransport sector

14

13 Total EIB lending to transport in 2012 was 14.6billion ($18.8 billion). The above figure is the shareof EIB lending towards developing countries,following IMF definition of developing countries(2012), which includes the following member statesof the EU: Latvia, Lithuania, Poland, Hungary,Romania, and Bulgaria.


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3.7 Inter-American Development

Bank

Sustainable Development Challenges in

Latin America: Strategies and Initiativesof the IADB

79. Latin America and the Caribbean(LAC) face several social and economicdevelopment challenges as incomes riseand urbanization rapidly increases.Transport-related services for themovement of people and goods have beenincreasing rapidly, and with that the need tomake further investments in transportinfrastructure. According to a report by the

Economic Commission for Latin Americaand the Caribbean, during the last twodecades, Latin America has reduced itslevel of transport investment (as percentageof GDP) to one third of that in the mid-1980s.This, among other factors has contributed toa widening of the infrastructure gap in theregion, and will most likely result inincreased future demand for the funding ofinfrastructure projects in urban, interurbanand rural settings.

80. The IADBs mission is to supportLAC countries to develop in a sustainableand equitable manner. Against this goal, theIADBs 9th General Capital Increase (GCI-9) includes a series of commitments tailoredto pursuing its mission in the region:prioritizing work in several sectors, includingimplementation of policies for improvingequity and productivity, supportingcompetitive regional and internationalintegration and the protection of theenvironment, including the need to respond

to climate change issues.

81. Based on the GCI-9 priorities, theIADB has created and is currentlyimplementing a Climate Change Strategyfocused on developing knowledge andinstruments to mainstream climate changein IADB-funded operations. Furthermore,the IADB is supporting sustainable

development through its InfrastructureStrategy and the Emerging and SustainableCities Initiative (ESCI).

82. The overarching objective of IADBsInfrastructure Strategy is to guide future

IADB support to member countries ininfrastructure planning, construction, andoperation. The specific objectives are toprovide high quality infrastructure thatpromotes adequate services to supportsustainable and equitable economic growth,increase competitiveness and promoteinnovation. The ESCI is a technicalassistance program that helps intermediatecities in LAC to identify, prioritize andstructure projects to improve environmental,urban and fiscal sustainability; with

consideration of land-use, transportation,and climate change issues. The long termobjective of the ESCI is to partner with asmany as 50 emerging cities.

The IADBsTransport Strategic Areas

83. The transport sector plays animportant role in each of the strategies andinitiatives and performs a key part in theirsuccess as well as in achieving the goalsset by the GCI-9. The transport division is

contributing to IADBs efforts through itswork in five main transport strategic areas: i)the Regional Environmentally SustainableTransport (REST); ii) Road Safety; iii)Intelligent Transportation Systems (ITS); iv)Transport Logistics, and; v) Transport MegaProjects.

The Regional EnvironmentallySustainable Transport (REST) strategicarea has established a framework togenerate, share and disseminate best

practices related to sustainable transportthrough knowledge generation,strengthening IADBs competence to assistmember countries, and incorporating bothclimate change adaptation and mitigationcomponents in its transport projects.

84. The Road Safety strategic areasobjectives are to (i) strengthen institutional


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capacity and technical know-how inministries of transport, health and education,among others, (ii) foster public responsibilitytowards traffic safety throughcommunication campaigns, and (iii)contribute to the mobilization of resources to

reduce road injuries and deaths.

Figure 16: Mitigation Strategies andAccounting Methods for Greenhouse GasEmissions from Transportation (left) and

Road Safety Strategy (right)

85. The Intelligent TransportationSystems (ITS) strategic areas overarchingobjective is to create knowledge on planningand implementation of ITS projects astechnology solutions that contribute toimproving the efficiency and sustainability oftransport systems in LAC.

86. The Transport Logistics strategicarea strives to improve national andregional competitiveness throughimplementing national logistics plans andinvestment policy, providing know-how oneffective coordination between stakeholders,and providing national and regional dataplatforms on logistics indicators.

87. The Transport Mega Projectsstrategic area provides knowledge andexpertise to country members on large-

scale projects with high social andenvironmental impact and potential highrisks. Some of these include airports, portsand metro projects. It not only providestechnical and financial expertise but alsomanages and advises on potential financialand political impacts of the development orinvestment.

Sustainable transport components inIADB Operations

88. This year, as part of the RESTstrategic area, an analysis was performed tobetter understand the climate change and

general sustainability components in everyIADB transport operation. Covering theperiod between 2006 and 2013, 15 296operations representing $15.7 billion inloans and technical cooperation funds wereanalyzed. From the total amount, 15%contained climate change mitigationcomponents. In terms of the number ofoperations, 26% contained climate changemitigation components. In 2012 alone, 24%of the total approved operations had climatechange mitigation components.

89. Climate change adaptationcomponents started to appear in IADB loansin 2010. By 2012, the lending containingadaptation components amounted to $59.4million, and 1.5% of the loan amounts willbe spent to reduce the vulnerability ofinfrastructure against climate change.

IADB sustainable transport investments

in 2012

90. The pattern of IADB transportinvestments has been changing in supportof member country needs. In 2012:

16 loans with a total investment of morethan $1.5 billionapproved.16

11technical cooperation projectsapproved, supporting 15different

countries.

15Includes projects approved up to May 2013 andoperations in the pipeline for 2013.

16These investments do not include some othertransport-related projects framed under ESCI orprojects carried out by the Climate Change andSustainability Division.


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3.8 Islamic Development Bank


approach

91. In line with the latest IsDB GroupInfrastructure Strategic Plan (2009-2011),interventions of the IsDB in thetransportation sector in 2012 werepredominantly in least developed membercountries in Sub-Saharan Africa (SSA) andCentral Asia. Regional transport corridorscontinued to receive priority attention aswell as integrated transport projects withimportant social impacts, especially in ruralareas.

92. The transport portfolio in 2012 alsodemonstrates a great diversity in terms ofmodes with operations in the rail, road, portand rural transport sub-sectors.

Rail: A large operation in Turkey, theAnkara-Konya High Speed Railway Linewas approved. This is the first high-speed railway operation for IsDB.

Road: In addition to two road projectscontributing to the development ofregional road transport corridors in

Central Asia and Africa (the Trans-Saharan highway and the Central AsiaRegional Economic Cooperationcorridor 3), three road operations of highnational importance where approved inMauritania, Lebanon and Sierra Leone.

Ports: The Jorf El Asfar Coal QuayProject was approved in Morocco toupgrade an industrial port of criticalimportance for power generation in thecountry. The Durres fishing port projectin Albania was also supplemented by a

new financing phase. Rural transport: Rural transport

components were included in threeintegrated rural development projects inLebanon, Sierra Leone and Uganda.

In numbers: IsDB and sustainable

transport in 1433H17

Totaling $472million of investment.

Serving

9countries across Africa, Asia,

Europe and the Arab regions.

A diversified portfolio with47%offinancing for rail transport, 32%for ports

and 16% for roads.

Figure 17: 2012 MENA PPP forum in Beirut

New instruments to scale-up financing

93. The IsDB is scaling up its financingfor infrastructure in member countriesthrough new instruments. In addition tousing its ordinary capital resources forsovereign guaranteed projects, the IsDBhas set up new facilities and funds including(i) public-private partnership facilities; (ii) the

Arab Financing Facility for Infrastructureand the related Arab InfrastructureInvestment Vehicle, jointly set up with theInternational Finance Corporation (IFC) andother development partners; (iii) a new

Mudaraba Infrastructure Investment Facility;(iv) an Islamic Infrastructure Fund jointly setup with the ADB; and (v) the IsDBInfrastructure Funds 1 and 2.

17The IsDBs financial year is the lunar Hijrah Year(H). 1433H covers the period between November2011 to November 2012.


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94. A landmark project in high-speedrailway: The IsDB is supporting Turkey inmodernizing its railway transport sector. In2012, the IsDB approved the Development

of the Ankara-Konya High Speed RailwayLine with a contribution of $227.8 million.This project will reduce the rail travel timefrom Ankara to Konya from 10 hours to 1hour and 15 minutes by providing a highspeed direct railway link of 304 km. This isthe third IsDB support to the railway sectorin Turkey following the Upgrading ofRailway Tracks Project and the ElectricLocomotives Project.

Figure 18: High speed railway in Turkey

95. The joint IsDB-AULT-IRU project:In partnership with the International RoadTransport Union (IRU), IsDB has launched aTA project to help the Arab Union of LandTransport (AULT) increase professionalcompetence for fleet managers and driversin the Arab region, improve road safetythrough scientific research and identify themain causes of truck accidents across theregion. The flagship 18-month projectacross seven Arab countries is one of the

major initiatives in 2012 of the IsDB topromote the strategic transport sectorobjectives of promoting land transportefficiency, facilitating trade and transportand improving road safety.

96. The promotion of womenentrepreneurship in the transport sector:Mrs. Seyedah Moghimi, the founder and the

managing director of Sadidbar, aninternational shipping company in Iran, wasawarded the IsDB 1433H prize forpromoting womens role in finance andeconomy. Mrs. Moghimi has pioneeredwomen entrepreneurial activities in the

transport sector in Iran and therebysupported the national, as well as regionaleconomic development of the country andregion.

Initiating the sustainable transport

agenda

97. IsDB is one of the 8 MDBs that havejointly committed to the sustainabletransport agenda at Rio+20 in June 2012.

Voluntary steps were taken to (i) develop anew methodology to assess thesustainability of the transport sector portfolioand (ii) promote the systematicconsideration of sustainability issues at thepreparation and implementation stage fornew transport sector operations. With thesupport of the joint MDB Working Group onSustainable Transport, IsDB has madesignificant progress in 2012 towards thesetwo objectives and a pilot assessment of thesustainability of transport operations using a

revised version of the ADB STARframework is being performed.

Figure 19: Approved IsDB financing in 2012in $ million

20.78

150.37

76.87

222.75

rural ports roads rail

rural ports roads rail


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3.9 World Bank


approach

98. Through its Transport StrategySafe,Clean and Affordable - Transport forDevelopment adopted in 2008, 18 WBemphasizes integrated transport solutions. Ittakes account of the wider benefits oftransport in providing access to socialservices, generating trade opportunities andshaping the economic geography ofcountries and regions. It commits WBtransport operations to account for socialcosts in terms of environmental costs andtransport safety risks.

99. To address the specific challengesand needs of its clients, WB offers a rangeof instruments. Investment lending anddevelopment policy lending support theprovision of essential capacity andinstitutional strengthening related totransport infrastructure. Transportknowledge products then scale up lessonslearnt and offer sectoral guidance.

In numbers: WB investments in transport

in fiscal year 2013

19

100. In fiscal year (FY) 2013, the WB:

Approved 36new operational activities.Amounting to $4.3 billionin

commitments.

Serving 30countries.

101. The Africa region registered thehighest commitment both in terms of value

and number of projects: eleven projects witha commitment of $1.5 billion. East Asia hadeight projects, with a total engagement of

18Available at: http://go.worldbank.org/RSESS3TIJ0

19 As approved by the Transport Sector Board, dataas of December 13, 2013. The WBs fiscal year(FY) starts on 1 July and ends on 30 June. FY 2013covers the period between July 1 2012 and 30 June2013.

$0.5 billion. With the exception of the MiddleEast and Northern Africa (MNA) region, allthe regions had five projects approved. Interms of commitments, they were asfollows: South Asia region $0.6 billion,Europe and Central Asia region $0.9 billion,

and Latin America region $0.6 billion. MNAregistered one project with a commitment of$40 million.

Priority areas

102. Urban transport: WB has beenincreasingly involved in urban transportprojects to improve the integration acrossurban services and to increase the accessof the urban poor to employmentopportunities and health and education

facilities. Across WB, the share of urbantransport related investments rose from10% ($893 million) in FY 2011 to 19% in FY2013 ($1billion), with four new urbantransport projects approved.

103. A capacity building program forLeaders in Urban Transport Planning hasbeen developed to create awarenessamongst leaders about the need to plan forurban transport in a comprehensive andholistic manner rather than through

construction of high cost facilities alone. Theprogram seeks to create an understandingof the need to combine supply sidemeasures with demand side measures andalso the need for integrating urban transportplanning with several dimensions such asland use, environment, social, energy andother issues. In FY 2013 the programtrained 250 participants from 20 countries.

104. Transport and climate change:The WBs policy agenda on transport and

climate change has been published in 2013in Turning the Right Corner EnsuringDevelopment through a Low CarbonTransport Sector. This analysesrelationships between mobility, low-carbontransport and development, and shows howpolicies can be organized to generaterevenues that allow an affordable transitionto low-carbon transport.
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://documents.worldbank.org/curated/en/2013/01/17782806/turning-right-corner-ensuring-development-through-low-carbon-transport-sectorhttp://documents.worldbank.org/curated/en/2013/01/17782806/turning-right-corner-ensuring-development-through-low-carbon-transport-sectorhttp://documents.worldbank.org/curated/en/2013/01/17782806/turning-right-corner-ensuring-development-through-low-carbon-transport-sectorhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.htmlhttp://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTTRANSPORT/0,,contentMDK:20259386~menuPK:5141563~pagePK:210058~piPK:210062~theSitePK:337116,00.html


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105. WB is engaged in the reduction ofthe transport carbon footprint. The transportsector strategy encourages green transportsolutions. WB engages in innovative effortsto reduce emissions without endangering

mobility (new technologies, new supplystructures and demand management), torealize the potential of climate policies andto reduce sector vulnerability by improvinginfrastructure services and ensuring resilientnew investment.

Figure 20: Turning the Right Corner

106. Measuring the wider impacts of

transport: WB is developing acomprehensive assessment methodology toinclude the wider benefits of transport,congestion costs, health costs of local airpollution, road safety risks and GHGemissions in ex-ante planning andevaluation of projects and policies.

107. Road safety: WB acknowledges themagnitude of the road safety problem and iscommitted to working with clientgovernments to determine specific road

safety interventions and provide TA foractivities that increase their capacity toprepare, prioritize and implement cost-effective, multi-sectoral road safetyprograms. These efforts are translating intoa new generation of interventions visibleacross an increasing number of countriesand projects. FY 2013 was a record year forroad safety at WB with commitments

amounting to $191 million, and FY 2014 willvery likely be another record year.

108. Special attention is given to co-benefits with other sectors, notably to thehealth sector through, for example, the

implementation of HIV/AIDS awareness andmitigation measures. The inclusivedevelopment attributes are also illustratedby pilot interventions for womens groupsand spatial development programs forneighborhood infrastructure developmenttargeting the poorest.

Project examples

Nanchang Urban Rail project ($250million) will emphasize urban

transport integration and land useplanning while promoting inclusivedevelopment

National urban transportimprovement project in Kenya ($300million) will support theimplementation of policy andinstitutional reforms in transport,create institutional capacity toprovide oversight and regulatoryfunctions, and prepare appropriateinvestment interventions to promote

urban public mass transit systems CEMAC transport and transit

facilitation project ($125 million) willadopt road safety interventions andimplement HIV-AIDS awareness andmitigation measures in the roadssector

Nepal-India regional trade andtransport project ($69 million) willdecrease transport time and logisticscosts for bilateral trade

Rural Transport Improvement project

($302 million) in Bangladesh willimprove rural road accessibilitybenefiting approximately 22 millionpeople, including disadvantagedwomen and other vulnerable groups


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4 Conclusion and next steps

Conclusion

109. This report has provided a short

summary of the work of our MDBs in thefirst year of the Rio+20 Commitment. In justover a year from Rio+20, we haveconcretized working arrangements amongour institutions, developed a commonframework for monitoring and reporting onour progress, and initiated work to monitorthe sustainability of our transport operations.

110. We are generally on track to meetour Rio+20 Commitment. In terms ofvolume of funding, we approved collectively

more than $20 billion in financing.

111. Beyond financing, our MDBs areworking to leverage change in support ofsustainable transport thorough capacitybuilding, knowledge sharing, and policydialogue. The development of an initialframework for monitoring and reporting isnow complete, and is now at the stage ofpilot testing and refinement.

112. Building on these achievements, we

will continue with our efforts to fullyimplement our Rio+20 Commitment (seealso Annex 1, Action Plan on SustainableTransport Assessment).

Tentative plans for 2014

113. In 2014, we plan to further developour monitoring and reporting framework,and conduct a fuller sustainability analysisof our transport operations. This mayinvolve:

Further adjustments to the

framework, to allow specificities of

each MDB and their transport

projects to be better captured (e.g.

types of projects and their impacts)

Conduct of joint training workshops

Outreach/consultation with wider

stakeholders, including client

countries, experts and other

development partners

114. As 2014 is a critical year for thedesign of the post-2015 developmentagenda, we will work closely with concernedstakeholders, including agencies of the UN,to ensure that our work can contributeeffectively to this process.

Mid-term plans

115. Looking beyond 2014, we plan tocontinue with our efforts during the entire

course of the 10 year commitment period,with a view to:

By 2015, our MDBs being in aposition to monitor and report on thesustainability of all our new projectsunder the joint framework

By around 2017, undertaking a mid-term review of our Rio+20Commitment, which may include anassessment of the sustainability ofcompleted (in addition to approved)

projects.

116. In addition, further work could takeplace under the WGST and TWG toadvance our efforts on specific key issuescentral to sustainable transport, includingbut not limited to resilience (climateadaptation), carbon footprinting, road safety,and urban transport.


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Annex 1: Initial Framework for the Assessment of the Sustainability of

MDB-supported Transport Sector Operations

Background

1. Rio+20 Context. According to the

Multilateral Development Banks (MDB)

Joint Statement at the Rio+20 conference,

We recognize the need for a results-based

approach to supporting sustainable

transport. This will require reliable

arrangements for measuring, monitoring

and reporting results at country, regional

and global level. This equally applies to our

institutions and we are committed to

introducing annual reporting on our

sustainable transport related lending and to

developing common arrangements for this

purpose. Together with 66 agencies that

form the Partnership on Sustainable, Low

Carbon Transport (SLoCaT), we have

initiated work on definitions, setting targets

and choosing indicators for sustainable

transport/mobility and assistance provided

to support sustainable transport/mobility,

with a view to finalizing these within 2012.To deliver these objectives, the MDBs

established in 2013 a Working Group on

Sustainable Transport. Its Technical

Working Group prepared this paper for

consideration by the Working Group.

2. Guiding framework and

applicability. This framework is to help

define and establish common standards and

good practices for the assessment of the

sustainability of MDBs transport sectoroperations. The framework aims at enabling

a joint and common reporting. It is also

expected to help in the MDBs linkage

between their operational processes and

evaluation in the pursuit of the common

sustainable transport objective. The

framework acknowledges that MDBs

transport-sector interventions are various innature and that their corporate missions and

operational practices differ. Consistency is

necessary to permit comparability and

aggregability of results across MDBs, but

full standardization is not. Last, its higher

objective is to facilitate the delivery of more

sustainable transport projects, and hence

limit transactional costs.

3. The framework and standards

presented in this paper (i) derive from good

practices in use in MDBs or government

agencies, (ii) draw partially on the OECD-

DAC evaluation principles, e.g. of

independence, credibility, and transparency,

and (iii) are designed to be compatible with

MDBsexisting operational processes.

4. Scope and limitation of this paper.

This paper defines a common set of

principles that are sufficient to enable

common reporting, good practices that aim

at facilitating the aggregability of results and

improving the quality and usefulness of

information for operational purposes, and an

action plan for a gradual harmonization over

the next years. The paper does not provide

a complete operational basis for

standardization. ADBs Sustainable

Transport Appraisal Rating (STAR) is

referenced for use by MDBs that wish to

adopt it or derive from it their own practices.Finally, the paper acknowledges that the

assessment of the sustainability of transport

operations is a relatively new area to MDBs,

and that practices and standards will evolve.


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Assessment Framework andStandards

5. Dimensions. The MDB statement

provides the following definition of

sustainable transport: transport that isaccessible, affordable, efficient, financially

sustainable, environment-friendly, and safe.

Conscious that many definitions of

sustainable transport and of sustainability

itself exist, the Technical Working Group

notes that all definitions implicitly refer to

three pillars of sustainability, e.g. economic,

social, and environmental sustainability.

These dimensions provide the basis for the

assessment. The Technical Working Group

notes that they can be complemented by afourth one, representing the risk to the

sustainability of the projects and which is

very much linked to the soundness of the

project and the capacity of the local

institutions to implement the project and

sustain its benefits.

6. Scope. The assessment is primarily

concerned with the sustainability of projects.

The assessment encompasses all

dimensions of sustainability. It is based on

specific criteria, subcriteria and indicators. It

typically results in ratings for each criterion

under pre-defined scales. The assessment

provides an overall judgment on the

sustainability of an operation. The

assessment also provides information on

portfolio or groups of operations by

aggregating the results of individual

operations.

7. Timing. The assessment of the

sustainability of transport sector operations

can be carried out at various moments of

the project cycle, from the concept of a

project to its appraisal or post-appraisal, as

an appraisal tool, and the evaluation of

completed operations, as an evaluation tool.

To provide immediate feedback on the

changing MDBs transport sector operations

under the Rio+20 mandate, the Technical

Working Group proposes to assess projects

as they are approved by each MDB during a

given year, and to monitor active portfolios.

8. Assessment Criteria and

Subcriteria. The Technical Working Group

understands that sustainable transport

projects have positive net economic, social

and environmental impacts. Such projects

may have limited and acceptable trade-offs

between the dimensions of sustainability;

they make efficient use of resources, and

are within or strengthen the financial and

institutional capacity of the local institutionsto deliver such projects.

9. Each dimension of sustainability

provides a criterion for the assessment. The

assessment can consider (i) the projects

positive or negative net, directly attributable

impacts, and (ii) the performance of the

project when compared to sector common

practices. The definitions provided below

are broad to allow for individual

customization according to each MDBscorporate objectives.

Economic effectivenessrefers to boththe significance of the expectedeconomic impacts over the life-cycle ofa project, and the efficiency with whicheconomic resources are used to deliverthem

Social sustainability describes theextent to which project will benefit thepoor, vulnerable and discriminatedagainst, contribute to creating safe andsocially-inclusive communities, andminimize adverse impacts, such asresettlement

Environmental sustainabilitydescribes the net environmentaloutcomes of a project, such as reducingtransport emissions and pollution,


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substantiating the assessment, the ratings

awarded, and the value of the indicators

selected. Each MDB reports to other MDBs

aggregated information on new approvals

and portfolio, as inputs to the annual joint

MDB report. The publicity of project-levelassessments is subject to the

communication policies of each MDB.

17. Quality Assurance. The

assessments rely on either, or a

combination of, self-assessments,

assessments by internal or external experts,

independent evaluation departments, or

auditors. When determining the process

followed, each MDB seeks to ensure

inasmuch as possible the relevance, qualityand impartiality of the assessments. To

ensure coherence between assessments, it

is considered good practice that all

assessments be reviewed by a single entity

or group of people within an MDB.

18. Harmonization. The Technical

Working Group will review each MDBs

assessment methods and processes with

view of maintaining comparability and

learning from experience. In case of co-

financed projects, the ratings will be

discussed between the MDB involved

before their finalization. The technicalworking group notes that ADB has

developed STAR for the pur

Documents

Progress Report (2012-2013) of the MDB Working Group on Sustainable Transport