0 Developing international corridors across Africa, Asia and the Middle-East, lessons learnt from IDB experience Dr. Walid Abdelwahab, Director Infrastructure Department

Snapshot of IDB Group Transport sector portfolio Why finance international corridors? 7 best practices in corridor development from IDB experience 1 Outline

2 Snapshot of IDB Group - Overview Sector distribution of IDB project financing US$ 84.9 billion total approvals since inception Transport is a priority for IDB

3 IDBG Initiatives for developing trade and transport across regions 1) Financing of critical transport infrastructure Total Operations : 393 Total Operations : 57 51% of total in last 5 years Total Financing : ID 4.42 Bn Total H: ID 2.27 Bn Transport Scorecard

4 Snapshot of IDB Group – Strategic focus on regional integration Mid-term business strategy Reform IDB Alleviate Poverty Promote Health Universalize Education Prosper the people Empower the Sisters of Islam without breaching the tenets of Islam Expand the Islamic Financial Industry Facilitate Integration of IDB Member Country Economies Among Themselves and with the World Improve the Image of the Muslim World The strategic thrust of the IDB Vision 2020 is to support and promote greater economic cooperation and integration at regional level. The strategic thrust of the IDB Vision 2020 is to support and promote greater economic cooperation and integration at regional level.

5 Transport sector portfolio – Global initiatives

Source: A study of international transport corridors in OIC member countries, IDB, Our focus on international corridors Trans-Saharan Highway SEETO Corridor CAREC Corridors Silk Road Machreq Corridors Prioritization criteria for international transport corridors  Involvement of OIC Member States  Intra Regional Trade Potential  Inter Regional Trade Potential  Presence of Missing Links  Importance of Non-Physical Barriers  Distance from Ports  Connections with Capital Cities  Connection Between Locations of Economic Importance  Transport costs along the corridor Some Ongoing Projects across IDB constituency

7 best practices in corridor development from IDB experience 7  Adopt a programmatic approach (i)  Build a strong case before resource mobilization (ii)  Set up an independent governance body (iii)  Consider alternative routes (iv)  Align multi-year country development plans (v)  Coordinate donor support through roundtables and joint preparation (vi)  Address physical and non-physical barriers to trade (vii)

8  Adopt a programmatic approach (i) 7 best practices in corridor development from IDB experience Programmatic approach helps ensure:  Strategic consistency  Sustainability of the initiative  Long term donor support  Staged implementation  Adaptation to country context and national priorities Ex) The CAREC corridors Programmatic approach helps ensure:  Strategic consistency  Sustainability of the initiative  Long term donor support  Staged implementation  Adaptation to country context and national priorities Ex) The CAREC corridors

9  Build a strong case before resource mobilization (ii) 7 best practices in corridor development from IDB experience  Raise the profile of the program through communication (events) and demonstration projects  Prepare comprehensive Feasibility study  Develop Bankable proposals (investment-ready)  Explore PPP opportunities Ex) The Silk Road, linking Europe to Asia through trade  Raise the profile of the program through communication (events) and demonstration projects  Prepare comprehensive Feasibility study  Develop Bankable proposals (investment-ready)  Explore PPP opportunities Ex) The Silk Road, linking Europe to Asia through trade

10  Set up an independent governance body (iii) 7 best practices in corridor development from IDB experience International corridor developments are multi-country multi-stakeholders initiatives, need to institutionalize through set-up of sound governance arrangements such as Steering Committee or Corridor Observatories Composed of Director of Roads from the 6 participating countries (Algeria, Chad, Mali, Niger, Nigeria and Tunisia) Set-up in 1966 In charge of studying and implementing the program Bi-Annual coordination Meetings Coordination of donor support and roundtables Execute country programs while ensuring consistency across countries Platform for knowledge exchange and capacity building The Trans-Saharan Liaison Committee

11  Consider alternative routes (iv) 7 best practices in corridor development from IDB experience For each corridor need to define the alternative routes composing the corridor and develop economic feasibility and preliminary studies at network and route level. Ex) The South-East Europe Transport Observatory (SEETO) Comprehensive Network Road For each corridor need to define the alternative routes composing the corridor and develop economic feasibility and preliminary studies at network and route level. Ex) The South-East Europe Transport Observatory (SEETO) Comprehensive Network Road

12  Align multi-year country development plans (v) 7 best practices in corridor development from IDB experience A corridor is only as strong as its weakest link ! Need to ensure continuity of cross-border investments to address missing links in sequence. Ex) Trans-African Highways A corridor is only as strong as its weakest link ! Need to ensure continuity of cross-border investments to address missing links in sequence. Ex) Trans-African Highways

13  Coordinate donor support through roundtables and joint preparation (vi) 7 best practices in corridor development from IDB experience The coordination of donors is critical to ensure financial closure of major corridor projects. Donor roundtables or joint preparation missions are an efficient way to attract maximum donor support. Ex) The Coordination Group of Arab donors, coordinating responses in the transport sector for more than three decades Ex2) Machreq corridors and CAREC corridors co-financed with other MDBs The coordination of donors is critical to ensure financial closure of major corridor projects. Donor roundtables or joint preparation missions are an efficient way to attract maximum donor support. Ex) The Coordination Group of Arab donors, coordinating responses in the transport sector for more than three decades Ex2) Machreq corridors and CAREC corridors co-financed with other MDBs

14  Address physical and non-physical barriers to trade (vii) 7 best practices in corridor development from IDB experience Border waiting times account for up to 48% of journey time across international corridors in the Arab region! (Source: AULT/IRU/IDB Project) If non-physical barriers to trade are not tackled properly the impact of cross-border transport corridor projects is very limited Ex) Barriers to trade in West Africa Border waiting times account for up to 48% of journey time across international corridors in the Arab region! (Source: AULT/IRU/IDB Project) If non-physical barriers to trade are not tackled properly the impact of cross-border transport corridor projects is very limited Ex) Barriers to trade in West Africa Time –Distance (Blue) and Cost – Distance (Green) graphs for selected Arab corridors (Qatar-KSA-Egypt, Jordan-KSA-Kuwait) Source: AULT/IRU/IDB project

شكرا لكم Thank you Walid Abdelwahab 15