urban transportation: french development agency
TRANSCRIPT
8 April 2011
French Development Agency
Urban transportationp
AFD in a nutshell1.1
French ODA agency , 7 Billion Euros (USD 10 billion) commitments in 2010 in 60+ t i60+ countries
Provides sovereign, non sovereign loans, grants
S b idi d di t d t fi i th P i t t PROPARCO Subsidiary dedicated to financing the Private sector: PROPARCO
Untied financing
Frequent co financing with WB EIB ADB IDB etc Frequent co-financing with WB, EIB, ADB, IDB, etc.
Mandate centered on Growth Poverty alleviation and inequalities Global public goods
About 20 AFD-supported urban transport projects currently in progress or
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under consideration: BRT, cable, LRT, Metro…
AFD offices in the world1.2
DamascusDamascus2009 Bagdad
2010
Mexico City2009
Bogota2009
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Rapidly increasing urbanisation 2.1
Sub‐Sahara
ASIA
2008: 1.6 BillionLatin America
Global Urban Population
1970: 1 BillionUrban Population
2050: 1.2 Billion 2050: 3.5 Billion75‐90% en 2020
2020: 4.5 Billion Urban PopulationX 2 in 15 years
Consequences A world‐wide phenomenon: urban pdevelopment Great mismatch between needs and
+ ‐
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resources
Global strategy contributing to sustainable cities2.3 sustainable cities
Strengthening Targeting LA’s financial sustainabilityStrengthening capacities of LAs Improving urban management
1
Improving urban living conditions and
Improving housing conditionsGeneral access to basic public services
Promoting urban mobility2
Preserving local environment
productiveness
Promoting territorial
Promoting urban mobilityEconomical activities and local employment
gUsing urban policies for climate change
adaptationPreserving urban heritageFighting urban diseases
Promoting territorial development with
global public goods preservation
3
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Fighting urban diseasespreservation
The AFD approach for transport3.1
Integrated, at three main levels Level 1 – Structured and integrated development of public transport options Level 2 – Integrated management of all urban transport options Level 3 – Interdependent planning in transport and urban development
Pragmatic, concerning implementation
Diversified, in financing and partnerships
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Level 1 – Structured and integrated development of public transport
3.2development of public transport options Strong and visible improvement of supply of public transport options Without a priori technological preferences or assumptions with respect to
public transport options (ie available to the public: taxis, buses, BRT, trams, light rail, metro, trains, boats, etc.) depending on local demand and links
Without a priori institutional preferences or assumptions with respect to status of operators (public, private, public-private)
Integration of tariffs, ticketing, and functionality across the whole range of public transport options Attentiveness to changing points/junctions and hubs within the transport
chainchain Multi-modal regulation by a public authority, with responsibility over a
pertinent area
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Level 2 – Integrated management of all urban transport options3.3 all urban transport options
Coordination across the whole urban area of all transport options, public and i t f i d t i d t i d iprivate, for moving persons or goods, motorised or non-motorised, moving or
stationary
Selective and optimal management of car use and private transport options, di t ti d t f t i < > t faccording to purpose, time and zone, to favour certain uses <-> system of
traffic flow and parking, selective application of toll, speed limits, etc.,
Promotion of soft transport options (walking, cycling), clean motors, slow traffic and new technologies as well as special measures for children andtraffic, and new technologies, as well as special measures for children and disabled;
Extending responsibility of public transport authorities to include all urban transport optionstransport options
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Level 3 – Interdependent planning in transport and urban development3.4 transport and urban development
Coherence of urban development and transport master plans, including di t d t t f h bli t t t d b d ifi ticoordinated strategy for heavy public transport routes and urban densification.
S h f t f d l t f b bli t t Search for recurrent resources for development of urban public transport: assessmement of property/land values, selective tolls for road and parking infrastructure, employer contributions, etc.
Coordination of sector strategies at the relevant territorial (inter-community) level within an integrated framework to manage urban energy and climate footprintfootprint.
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Financing3.5
Long term finance for long term use
Analysis of the financial scheme
A l i f th j t d h fl Analysis of the projected cash flow
Debt profile designed accorder to the project profitability (grace period )period,…)
Repayment are fixed according to the cash generation capacity
Debt supported directly by the municipality or through a satellite body or through other mechanism…
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Main questions PPP3.6
PPPs are not a source of funding; rather a mechanism to “raise funds” for a j t ( d tti th l d / it id itt d t j tproject (and getting the lender/equity provider committed to project
implementation)
Why opt for PPP: reduce recourse to public investment shared risks benefit from performance of private sector, procurement environment, financial
expertise (albeit not conditions)
Prerequisites guarantees on commercial revenue necessary clarity of legal environment c a ty o ega e o e t fundamental economic viability strong public monitoring
Question: who borrows the funds?
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Question: who borrows the funds?
4. Some examples
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Amman Rapid Transit, Jordan4.1
Project: 2 stages until 2025, 2 t h l itechnologies: LRT 40 km BRT 52 km
Objectives: modify tendencies in terms of mobility and support the city planning policy
Target: 590 000 travelers/day
Project’s cost: US$ 2.6Bn
AFD lended US$ 166m (sovereign) + €2.2m grant
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Medellin, Colombia4.2
Project: urban transformation with social and i t l t i i t t denvironmental components in an integrated
manner
Objectives: Transport: 1 tramway line and 2 metrocable to
link the center of the city with center-East neighborhoods
In parallel, improvement of the center-East part of the city with public areas organised for socialthe city with public areas organised for social enhancing
Partnership with the French city of Nantes
Projec’s cost: € 400m
AFD financed € 200m
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CENTRORIENTAL
Titre de la présentation 15Parque Bicentenario BEFORE
CENTRORIENTAL
Titre de la présentation 16Parque Bicentenario AFTER
CENTRORIENTAL
Titre de la présentation 17Paseo Ayacucho BEFORE
CENTRORIENTAL
Titre de la présentation 18Paseo Ayacucho AFTER
Curitiba, Brazil4.3
Project: sustain the municipality’s policy for transport and biodiversity
C itib Objectives: Reduce GHG due to transport Protect biodiversity by creating an ecological
fence
Curitiba
fence
Content: Improvement of the linha verdeNorth part, 7th BRT axis of the city on an former highway turned into and urban
Paraná
g yavenue
Targets: 25 000 tCO2 eq
SETOR ESTRUTURALZR 4
ZR 4
ZR 3
ZR 2ZR 3
ZR 1ZR 1 ZR 2
Protection and reintegration of native species
Exchanges with the city of Lyon
P j t’ t € 72 AFD fi d € 36
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Project’s cost: € 72m, AFD financed € 36m
5. AFD in Turkey
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AFD in Turkey5.1
The Istanbul office was opened in 2005 ith 2 ti iti Loans granted in Turkey 2005 with 2 activities: Private and banking sector Municipal sector
30%
g y
since 2004
About €1bn of loans granted since 2004
These financings were granted to 70%SMEs through banks, to the private sector and to municipalities (including SKİs) Private and banking sector
Municipal sector
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How we work with municipalities5.2
The way we workWe propose
AFD finances municipalities’ projects and investment programs (LT maturities, in €or TL)
Municipalities are the project owners and managers
Financial assessment of repayment Develop partnerships between Turkish
and French municipalities and local institutions
Financial assessment of repayment capacity
Availability of detailed feasibility of the transportation project
With or without Treasury guarantee
Attractive financial conditions in terms of interest rates and maturities of the loans
transportation project
Consistency with the transport master plan
interest rates and maturities of the loans
Possibility of co-funding with other donors and commercial banks when needed
Approval of the Treasury and the SPO
Untied aid
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Report on transport financing5.3
Handbook good practices for financing urban transport
(AFD MEEDDM) 2009(AFD-MEEDDM) 2009
Link:
http://www.afd.fr/jahia/webdav/site/afd/shared/ELEMENTS_COMMUNS/pdf/Handbook-good-practices-for-financing-urban-transport-AFD-MEEDDM-2009.pdf
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