Global experts

Ankara, 18 October 2017

IDB's Experience in Transport Corridors in OIC Member Countries

Ahmed Al QabanyInfrastructure Department

What we’ve been doing

What we’ve learned

How we’re moving forward

Outline

57 Countries : OIC Member Countries (4 continents): 1.7 Billion People 23 % of World’s Population – 11 % of World’s GDP

The Islamic Development Bank

IDB Group Infrastructure Strategic Plan aims at ‘’addressing economic development challenges

through infrastructure development’’

• A 10% drop in transport costs, in fact, increases trade by 25% (Limão and Venables 2001).

• The United Nations’ Almaty Declaration (2003) recognized the key role of transport cost in international trade competitiveness (UN-OHRLLS 2003).

• Transport costs are typically higher in developing, than in developed, countries because of poor infrastructure, ill-defined processes, weak regulations, and a low regard for transport facilitation.

• An economic corridor attracts investments to—and generates economic activities in—the areas or regions served by the corridor. However, physical links must already be in place.

Economic Corridors and Transport Corridors

IsDB MCs have relatively poorer transport infrastructure. The average road length per 1000 people:

MCs 2.5 km : 5.4 km World Average: 15.5 km Developed Economies

The average road network per 1000 Km2: MCs 126 km : 268 km other developing economies (268 km), developed countries 479 km : world average 315km.

Length of railway serving 1000 people:MCs 70 meters : world average is 170 meters : Developed countries is 540 meter.

Railway land coverage/1000 Km2 land area:MCs Average 3.3 km : developing economies 7.7 km

Despite 100,000 km of coastline, in terms maritime trade, total fleet capacity per 1000 people:MCs 53 tons : world average of 199 tons : Other developing countries reached 175 tons.

Transport Infrastructure in IsDB MCs

As a South-South Multilateral Development Bank.

What would you expect us to do?

6

• Focusing on the Basic Services Sector

• Bridging the Access Gap to Basic Services

• Rural Development

– Renewable Energy Solutions

– Rural Electrification

– Clean Water Supply

– Accessibility

Infrastructure Focus

8

Structure of IDB Financing

9

Aktobe Makat Project: Kazakhstan

Aktobe Makat Project: Kazakhstan

14

Guinea: Regional Integration Roads (Dabola-Kouroussa, Kissidougou-Guékédou)

15

Country Background

Avepozo-Aneho Road & Coastal Erosion Protection Project

Some learning along the way Oman: Regional Connectivity

In 6 years:- Double Projected Traffic- Land Prices tripled- Trade between and number of businesses doubled.

Member Country X:

In 5 years: - No Traffic Increase- Border issue not improved- No increase in Trade- Road Already started deteriorating

How effective are we?

Developments Along the Road

Study: Transport Corridors in OIC MCs

Analysis of International Trade in the OIC Regions and With the Rest of theWorld

Analysis of Physical and Non-Physical Barriers and Trade Logistics in OICRegions

Trade and Transport Facilitation: Agreements Along the Transport Corridors

Prioritization of Transport Corridors Using A Criteria Prioritization Matrix

Key Outcomes: Roads, connections, create development through the creation

of new jobs through the possibilities of moving people andproduction to areas of production and consumption.

The development of trade is absolutely connected with transport infrastructure and facilitation measures.

IsDB-AULT-IRU Joint Project

Safer and More Efficient Road Transport in the Arab World

Up to 57% of total trip

time wasted on borders

and some drivers waiting

as long as 2 weeks

IsDB-AULT-IRU Joint Project

Recommendations

1. Adhere to main UN Agreements2. Facilitate border crossing procedures3. Train the industry (managers, drivers,

agents, officials, etc.)4. Remove bottlenecks (infrastructure,

knowledge, HR, services)5. Feasibility studies to upgrade cross-border

main and ancillary infrastructure6. Set up a Strategy Committee to drive a

strategy for endorsement by LAS or AULT

Way Forward

IDBG Vision

CONNECTIVITYA Strong Catalyst for

South-South Collaboration

IFS GROWTHA Leading Reference in

Islamic Finance

INCLUSIVENESSBecome a Preferred Partner for MCs Social and Economic

Development

Economic and social

infrastructure

Social development

Cooperation between MCs

Private sector development

Islamic finance sector development

Resource mobilizationSelectivity Manage for result

Financial sustainabilityLink strategy to

budget and resources

Group synergyBuild capabilities in

strategic pillars

OverarchingVision

Strategic Objectives

5 Strategic Pillars+ 1 Cross

Cutting Area

Guiding principles

Capacity Development

IDBG 10 Year Strategic Framework

With the guidance of the IDB’s Vision and the emerging challenges in the development landscape, the IDB Transport Sector Policy is planned to be built on the following four pillars:

Transport in support of economic growth and regional integration.

Transport that enables social inclusion.

Promoting Road Safety

Sustainable Transport.

Moving Forward: Transport Infrastructure Focus

The 2030 Agenda for Sustainable Development is a set of 17 aspirational goals (SDGs) with 169 targets:

Purpose is to shift the world onto a sustainable and resilient path and to guide policy actions for sustainable development over next 15 years

SDGs came into force on January 1, 2016

Sustainable Development Goals

Transform mobility to make it equitable, efficient, safe and green

MOBILITYOF GOODS AND PEOPLE

Ensure equity in access to

opportunities

EQUITYIncrease efficiency

of transport systems and

services

EFFICIENCYImprove “safety” of mobility (SDG

target 3.6 on road safety)

SAFETYShift transport

infrastructure and services to a

“green”, clean and resilient path

GREEN

A Global Framework : SUM4All

TRANSPORT FOR A DIFFERENT FUTURE?

Who we are

A multi-stakeholder partnership that speaks with one voice and acts collectively to implement that SDGs and transform the transport sector.

Countries Multilateral Development

Banks

Bilateral Donor Organizations

Global Civil Society

Organizations

Private Sector UN Agencies,

Funds and Programmes, and Regional Commissions

Non-Governmental Organizations

(NGOs)

Academic Institutions

Thank you

شكرا ً

UN Entities UN Department of Economic and Social Affairs (UNDESA) International Maritime Organization (IMO)United Nations Conference on Trade and Development

(UNCTAD)UN Economic Commission for Europe (UNECE) International Civil Aviation Organization (ICAO)World Health Organization (WHO)UN Economic Commission for Latin America and the

Caribbean (ECLAC)UN Environment (UNEP)UN Industrial Development Organization (UNIDO)UN Global Compact (UNGC)UN Human Settlements Programme (UN-Habitat)UN Office of the High Representative for the Least

Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) International Energy Agency (IEA)

Multilateral Development Banks World Bank Inter-American Development Bank (IDB)Asian Development Bank (ADB)African Development Bank (AfDB)European Investment Bank (EIB)European Bank of Reconstruction & Development (EBRD) Islamic Development Bank (IsDB)Banco de Desarrollo de América Latina (CAF)

Other• Department for International Development (DFID)• International Transport Forum at the OECD (ITF-OECD)• Union Internationale des Transports Publics (UITP)• Institute for Transportation and Development Policy (ITDP)• Banco de Desarrollo de América Latina (CAF)• World Resources Institute (WRI)• Partnership on Sustainable, Low Carbon Transport (SLoCaT)• Paris Process on Mobility and Climate (PPMC)• Agence Française de Développement (AFD)• Bundesministerium für wirtschaftliche Zusammenarbeit (BMZ)• Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)• World Economic Forum• Federation Internationale de l'Automobile (FIA)• FIA Foundation• International Road Assessment Programme (iRAP)• World Road Association - PIARC• International Union of Railways (UIC)• University of California• International Federation of Pedestrians (IFP)• International Petroleum Industry Environmental Conservation Association (IPIECA)• International Road Federation (IRF)• International Road Transportation Union (IRU)

SuM4All Consortium

Priority TC for MENA

9 prioritized corridorsfor MENA

32

Priority TC for African Countries

33

•There are 11 prioritized

corridors for Sub-Saharan Region.

Priority TC for Asian MCs

34

6 prioritized corridors for Asia

Direct Transport Targets of the Sustainable

Development Goals

3.6 By 2020, halve the number of global deaths and injuries from road traffic accidents

7.3 By 2030, double the global rate of improvement in energy efficiency

9.1 Develop quality, reliable, sustainable and resilient infrastructure, ….to support economic development and human well-being, with a focus on affordable and equitable access for all11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, by expanding public transport, with special attention to the most vulnerable

12.c Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances

Sustainable Development Goals

Transport is included in SDGsin both direct and indirect manner

Moving Forward: Cooperation and Integration

GIS Database of the Regional Infrastructure Networks

Pipeline of project along the identified networks

Development of Sub-regional Corridors

Projects

Transport - Energy - Communications

Cooperation Pillar of 10 YS: Connectivity:

TRANSPORT FOR A DIFFERENT FUTURE?

MORE EQUITABLE?

MORE EFFICIENT?

SAFER? GREENER?

A Global Framework : SUM4All

Project Cycle

Programming

• MCPS - OCx

Identification

• MCPS – CTY

Formulation & Appraisal

• Sector Departments

Implementation and Monitoring

• Sector Departments

Evaluation

• Independent Evaluation

Olama-Kribi Road Project

The Olama-Kribi road project, approved in 2014 for an amount of US$ 184 million, aims at constructing a 204 km paved road to facilitate the transportation of people, in addition to wood and forestry products up to the Port of Kribi. It also aims to provide optimal conditions for international and transit traffic whether from or to the Port of Kribi, the first and largest deep-water port in Cameroon, which is expected to serve Equatorial Guinea, Chad and Central African Republic. This project is expected to result in a 60% drop in transport cost in the Yaoundé- Kribicorridor, and an increase in annual trade volumes of goods by more than 20% on that Corridor.

Yamossokro-Bouake highway Project

IsDB approved the financing of this project in 2015 for an amount of US$ 153 million, where it is part of the "North road" Abidjan-Ouangolo, which links Abidjan, the economic capital of the country, to the North of Cote d'Ivoire as well as the neighboring landlocked member countries, namely Burkina Faso, Mali and Niger. The section financed under this project aims to sustainably improve the service level of the link Yamoussoukro to Bouake by the construction of a highway double carriageway highway of about 132 km long. The highway comprises two sections. Section-1- Yamoussoukro to Tiebissou a length of 37 km and Section 2 Tiebissou to Bouake with a length of 95 km.

Center-West Region Roads Project

The project, with an approved financing of US$ 94 million in 2015, entails construction of the pavement of two existing road sections. The first is the Seguela-Mankono section, which is about 55 km long and is part of the road linking the land locked hinterlands western region of Cote D’Ivoire to Abidjan (economic capital) and Yamoussoukro (political capital). The road section Toulepleu-Zouan Hounien is a track road of about 45 km long, connecting the city to the Toulepleu to Zouan Hounien. This route is expected to enhance access to the center western region of the Cote d’Ivoire to the eastern regions of Guinea and Liberia.

Regional Integration Roads

Regional Integration: Rail & Ports

The BERKET-ETERK-Turkmenistan-Iran Border Railway Project in Turkmenistan: 256 km long railway line as part of the North-South Corridor linking Kazakhstan, Turkmenistan, and Iran: IDB contribution of USD 370 million. The West Iran Railway Line: 556 km long railway link connecting Samangan-Malayer-Kermanshah and Khosravi to Iraqi border (approved in 2007 and completed in 2013 with an IDB contribution of € 27 million).

Salalah Port in Oman:

(IDB: USD 53 million out of USD 251 million), increase of its capacity from 2 million TEU

to 3 million TEU, resulted in an increase of revenues of over 100%. Capacity of the port

increased to 5 million TEU by subsequent investments.

Mauritania: Modernization of Nouadhibou Mining Port Handling Equipment:Iron Ore exports constitute over 40 % of the total exports in Mauritania. The project succeeded in increasing SNIM’s iron ore production from 10.65 million tons in 2006 to 11.50 million tons in 2012.

Regional Integration: Ports