Financing Urban Transport

UNESCAP-SUTI EventOctober 2017

Urban Transport in Context

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The spiky urban economy of global cities

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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

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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

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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

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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