Development of Urban Transport Infrastructure - World …siteresources.worldbank.org/INTURBANTRANSPORT/... · WORLD BANK Urban Transport Strategy Review Development of Urban Transport

WORLD BANK Urban Transport Strategy ReviewUrban Transport Strategy Review

Development of Urban Transport Infrastructure

Slobodan MitricBudapest - March 1, 2001


Subject of this session

• Major urban roads (expressways)

• Urban public transport modes requiring separate infrastructure (e.g. metros, exclusive busways, ..)


Preview of the policy question askedin this session:

Should the World Bank finance major extensions of urban transport network, such as expressways and metros?


A reminder:

World Bank transport projects involve reforms in the transport sector leveraged by loans to finance investments in transport infrastructure, equipment and technical assistance


Case 1: Roads - elements of an urban roads strategy

• Road maintenance/rehabilitation activities• Traffic/parking management activities• Traffic law enforcement activities• Road expansion projects• Road organization and administration (institutions)• Road use pricing (direct, indirect)• Road financing


Urban road expansion – typical cases:

• The city in question is growing, so “package” investments are needed for new roads in the expansion areas

• Traffic is growing, so it may be proposed to superimpose new type of roads on an existing network (e.g. urban expressways)


Policy question of this session:? Should cities respond to motorization by

constructing urban expressways?

? Should the World Bank finance these new urban expressways?


Strategic issues involved [1]

?Are lower-level elements of the roadstrategy in place?

?Are new roads part of a coherent (higher-level) strategy for urban transport and land development?


Further strategic issues [2]

? Is an efficient system of road use pricing, revenue allocation and expenditure planning in place?

?Should these new urban expressways be priced (tolled) separately?


Further strategic issues [3]

? Which method of economic, financial, … evaluation has been (or should be) used for new roads?

? Does the evaluation method include the consideration of generated traffic (feedback from road construction to accelerated motorization and land use changes)?

? Is the method broad enough to include non-monetary and less-quantified factors, such as poverty, air/water quality, noise, esthetics …?


Remember the linkage

Tolled urban expressways

Possible private financing


? Which reform initiative is important enough to be placed in tandem with Bank investment in such large-scale projects like urban expressways?

? Possible option: locally-based road use pricing (e.g. peak-hour entry fee, as in Singapore; electronic road pricing, ..)


Case 2: Public transport - Elements of an urban public

transport strategy? regulatory framework (to encourage competition)

? other measures to reach efficiency (e.g. street priority)

? service standards

? price/subsidy policy

? financial health and internal efficiency of operators

? replacement investment program

? fleet/infrastructure expansion program


Reminder: types of urban public transport modes

? street-based bus, trolley-bus, tramway and LRT lines

? same as above, on reserved street lanes

? semi-rapid transit (SRT) lines: same as above, on partially exclusive right-of-way

? rapid transit (RT): fully exclusive right-of-way, e.g. metros, regional rail


Policy question of this session:

Should cities in developing countries build rapid transit or semi-rapid

transit (say: metro) projects?

Should the World Bank finance these projects?


Strategic issues involved in answering [1]

?Are lower-level elements of public transport strategy in place?

?Does it represent a technological and financial “leap” in this city?

? Is the proposed metro project a part of a coherent transport/land-use concept?


Strategic issues for metros [2]

?Which approach to evaluation (economic, financial, social impacts, environmental impacts …?

? Is the metro affordable to city and/or state (in terms of both capital and recurrent costs)?



?Which pricing policy will apply?

?What is the financial forecast for the metro operating company (e.g. operating income, sources/utilizations of capital, balance sheet)

?Who should own/operate the new line? (P&P partnerships?)



?Are complementary measures in terms of public transport feeders/distributors in place

?Are complementary measures to manage urban road congestion in place?

?What will be the impact of the metro on low-income travelers?



? What policy reform initiative can be placed in tandem with a metro project to make it a rounded development project?

? Option: a private/public partnership (concession).

? Should the policy initiative be limited to urban public transport, or can it extend to the road sub-system (e.g. road use pricing)?


Rondo theme: back to the beginning

Can the World Bank finance

- urban expressways?

- metros?

or should it focus on simpler projects?

Development of Urban Transport Infrastructure - World …siteresources.worldbank.org/INTURBANTRANSPORT/... · WORLD BANK Urban Transport Strategy Review Development of Urban Transport

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