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

1. 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

2. 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

3. 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

4. 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 safety New priorities for better aid • Transport facilitation effectiveness • Systems and Technology

5. 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

6. 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!

7. 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

8. 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

9. 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.

10. 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

11. 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

12. Decade of Action 2011-2020 Reasons to Act:

13. 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

14. MDB Shared Approach to Road Safety Indicators/criteria

15. 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

16. 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

17. 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

18. Selected initiatives for efficient road transport • Reduce the amount of travel activity Consolidation centers and logistics platforms Better use of multimodal transport

19. 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

20. 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

21. Selected Projects for efficient and safe road transport • LawderMukairas Road, Yemen (طريق لودرمكيراس) • Partially financed by IDB through $7M Loan, 1990 -1997

22. 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

23. 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

24. Selected Projects for efficient and safe transport • HadathEl Hubba Road, Lebanon • Improve national/local roads with significant truck traffic • IDB financing: US$ 16 M

25. 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

26. 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