Post on 07-Oct-2020
Financing Urban Transport
UNESCAP-SUTI EventOctober 2017
Urban Transport in Context
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3
The spiky urban economy of global cities
4
Mass transit networks converge towards a
characteristic structure with a dense and
interconnected core with branches
• Degree centrality describes how
connective a station is, that-is how many
lines it connects (major interchanges
have high degree centrality values)
• Closeness centrality describes how
close a station is from all the other
stations in the network (closeness
centrality is a measure of accessibility to
a station within the network)
• Betweenness centrality describes how
many routes go through a given station
(the more routes through the network
pass through a station, the more “in
between” this station is)Source: QuantUrb, CASA
Densities are Uneven
Development Unequally Distributed
At right: example of high densities along well-connected
Yamanote Line loop in Tokyo5
• Articulated urban densities are
shaped by the transport network
• Higher densities are enabled at
well-connected nodes that are
most accessible to the region
• These areas have the highest
demand for space and therefore
the highest land values
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LAND DEVELOPMENT AND ACCESSIBILITY
Only 15% of new development in the access range of
metro stations in 2015
>>Guaranteed future congestion
7
MEASURING JOB ACCESSIBILITY
Source: The 3V Framework (World Bank)
a. Line 1, 2, and 3 and walking: 12% b. Scenario a plus bus: 28%
c. Scenario b plus TOD: 39% d. Scenario c plus bicycle: 46%
Zhengzhou
• Population:6.4 million
• GDP per capita: US$11k
• Peak hour accessibility
Percent of jobs accessible within 45
minutes by public transit
8 in 10 households
living within a 10
minute walk from
a train station
75%
of all journeys in
peak hours
undertaken on
public transport
85%
of public transport
journeys (less than
20 km) completed
within 60 minutes
8
SETTING A VISION WITH CLEAR TARGETS
By 2030 in Singapore
Source: Alain Bertaud
Land Transport Master Plan 2013
Financing Urban Transport
“You will only have a piece of paper,
worthless, unless you can find money for it”
H.E Mr. Nimal Siripala de Silva
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FINANCING NEEDS
UNDERFUNDING TRAP: STRUCTURAL CAUSES
LOW REVENUES DUE TO
INEFFICIENT PRICING AND
ECONOMIC DISTORTIONS that
creates unbalance in favor of
unsustainable modes
LOW REVENUES DUE TO
INEFFICIENT PRICING AND
ECONOMIC DISTORTIONS that
creates unbalance in favor of
unsustainable modes
IMBALANCE IN INVESTMENT
RESPONSIBILITIES AND
FINANCIAL CAPACITY at the city
level
IMBALANCE IN INVESTMENT
RESPONSIBILITIES AND
FINANCIAL CAPACITY at the city
level
PERIODICITY MISMATCH
between Revenue and
Expenditure
PERIODICITY MISMATCH
between Revenue and
Expenditure
INSTITUTIONAL COMPLEXITY:
diverse levels (global, national,
local) and sectors (public,
private)
INSTITUTIONAL COMPLEXITY:
diverse levels (global, national,
local) and sectors (public,
private)
LOW INVESTMENT causes
construction and
maintenance lag vicious
cycle and deterioration
LOW INVESTMENT causes
construction and
maintenance lag vicious
cycle and deterioration
LOW REVENUE - IMPLICIT SUBSIDIES
LOW REVENUE - IMPLICIT SUBSIDIES
PUBLIC TRANSPORT PRIVATE CARS
ESCAPING THE UNDERFUNDING TRAP
A comprehensive multi-level financial
strategy that corrects structural causes from revenue and expenditure side
16Source World Bank
ANALYTICAL FRAMEWORK TO ASSESS AND
DESIGN URBAN TRANSPORT FINANCING
FINANCIAL SUSTAINABILITY (Innovative financing)
stability, political acceptance, and administrative ease of
instrument implementation
TRANSPORT SUSTAINABILITY (Wise investment)
economic efficiency, social equity, and environmental impact
And
REVENUE LEVEL, COST COVERED, PERIODICITY and RISK
18
KEY QUESTIONS
• Urban Transport Objectives
• Related indicators
(current and future value)
• Accessibility to jobs, service and amenities
• Share of residents within a 45 minutes
commute
• Coverage of public transport/mass transit
• Transport affordability for citizens and city
• Share of GDP spent on transport
• Mean travel time during peak hours
• Trip distance by capita
• Green Mode share
• CO2 emissions
• Deaths caused by road accidents
• Priorities
• Aligning land use and transport
• Aligning financing with objectives
• Project preparedness and land availability
• Phasing for impact: Quick Wins/Long Term
Plans
• Constraints
• Physical space
• Fiscal space
• Affordability/willingness to pay
• Ability to implement
DOWNLOAD THE BOOK HERE
Sustainable Urban Transport
Financing from the Sidewalk to
the Subway
or here:
https://openknowledge.worldbank.
org/handle/10986/23521
For more
Gerald Ollivier
Singapore Transport Cluster Leader
gollivier@worldbank.org