1. The role of multilateral development banks in improving road safety and road transport efficiency Road Transport Professional Training May 8 th, 2012 Amman, Jordan Dr. Walid Abdelwahab Director, Infrastructure Islamic Development Bank

2. 2 Outline Introduction: MDBs and road transport Importance of road safety and road transport efficiency MDB Shared approach to Road Safety: the Decade of Action Selected initiatives for efficient and safe road transport Conclusions

3. Islamic Development Bank 3 Outline Introduction: MDBs and road transport Importance of road safety and road transport efficiency MDB Shared approach to Road Safety: the Decade of Action Selected initiatives for efficient and safe road transport Conclusions

4. Islamic Development Bank 4 Transport is a priority for most MDBs Road transport still attracts the lion share of MDB financing But change of paradigm, road transport is not just about road construction and rehabilitation: – Road maintenance – Road safetyNew priorities for better aid – Transport facilitationeffectiveness – Systems and Technology Transport is a priority for most MDBs Road transport still attracts the lion share of MDB financing But change of paradigm, road transport is not just about road construction and rehabilitation: – Road maintenance – Road safetyNew priorities for better aid – Transport facilitationeffectiveness – Systems and Technology Introduction Cumulative project financing 1975-2010 Islamic Development Bank

5. 5 Outline Introduction: MDBs and road transport Importance of road safety and road transport efficiency MDB Shared approach to Road Safety: the Decade of Action Selected initiatives for efficient and safe road transport Conclusions

6. Islamic Development Bank 6 Road safety Road traffic fatalities forecast to rise from nearly 1.3 million deaths each year to more than 1.9 million by 2020 Developing countries most affected : account for > 90% of casualties from road deaths! Importance of road safety and road efficiency Source: WHO …from bad to worse !! Source: Chartsbin Road traffic Death rates per 100,000 population

7. Islamic Development Bank 7 Environmental efficiency With the fast-pace development of LDCs and MICs, CO2 emissions will soar to unsustainable levels Developing countries will become primary contributor by 2030 Road transport is the most inefficient land transport mode (vs. rail and inland water transport) Importance of road safety and road efficiency Source: International Energy Agency …from bad to worse !! Source: Texas transportation institute

8. Islamic Development Bank 8 Operational efficiency Trucking is very inefficient in LDCs as compared to OECD because of physical and non- physical barriers to trade High vehicle operating costs because of poor road condition High transport prices because of market inefficiencies in some regions Importance of road safety and road efficiency OECD countries > 100,000 miles …far behind! Source: World Bank USD cents / Tkm

9. Islamic Development Bank 9 Logistics efficiency Total logistics costs as a percentage of GDP reaches 20% in developing countries which impacts the their competitiveness. Importance of road safety and road efficiency …far behind! Source: CSIR, South Africa, 2010

10. Islamic Development Bank 10 Outline Introduction: MDBs and road transport Importance of road safety and road transport efficiency MDB Shared approach to Road Safety: the Decade of Action Selected initiatives for efficient and safe road transport Conclusions

11. Islamic Development Bank 11 MDB Shared approach to Road Safety: the Decade of Action Joint Statement by the MDBs as international development partners in managing road safety Scaling up and mainstreaming road safety in MDB activities Collaborative effort in managing road safety Establishment of a global Road Safety Incentive Fund to leverage MDB support Global initiative launched on 11 May 2011, 19 April 2012, UN resolution to improve global road safety. National and local launches of the Decade of Action for Road Safety 2011-2020 encouraged in all member countries Joint effort of Multilateral development Banks

12. Islamic Development Bank 12 Decade of Action 2011-2020 Reasons to Act:

13. Islamic Development Bank 13 Shared approach to Road Safety: the Decade of Action Road safety management Safer roads and mobility Safer vehiclesSafer road usersPost-crash response Establishment of a global Road Safety Incentive Fund to be managed jointly by the MDBs Outline - May 2012 Proposal- Sept 2012 Launch- 2013

14. Islamic Development Bank 14 MDB Shared Approach to Road Safety Indicators/criteria

15. Islamic Development Bank 15 Road Safety Action Plan – approved in January 2012, it serves as a guide in mainstreaming road safety in ADB’s transport operations Revised EIB Transport Lending Policy - “….all road projects are to be subject to Road Safety Audits in line with the principles of the EU Directive …”. … Capacity building and technical assistance Expert Group Meeting on Financing Transport Infrastructure Projects and Road Safety in the ESCWA Region 3rd IRU-LAS-AULT Seminar on International Carriage of Dangerous Goods by Road- IRU Academy Seminar on Road Transport Professional Training Technical Assistance Grant to the Arab Union of Land Transport Other examples of MDB interventions in Road safety

16. Islamic Development Bank 16 Outline Introduction: MDBs and road transport Importance of road safety and road transport efficiency MDB Shared approach to Road Safety: the Decade of Action Selected initiatives for efficient and safe road transport Conclusions

17. Islamic Development Bank 17 Environmental efficiency Sustainable transport or sustainable mobility strategies ex. GIZ A-S-I approach Moving freight with better trucks OECD / ITF initiative Selected initiatives for efficient road transport

18. Islamic Development Bank 18 Reduce the amount of travel activity Consolidation centers and logistics platforms Better use of multimodal transport Selected initiatives for efficient road transport

19. Islamic Development Bank 19 Operational efficiency MDBs recognize the need to:  Finance maintenance activities and programs for sustainable reduction of vehicle operating costs  Work on transport services in addition to infrastructure “ Transport services have been neglected for years on the assumption that reduction in VOCs would automatically lower transport prices… need to lower the price of transport so that they benefit the economy at large rather than a group of transport providers, “ World Bank, Transport prices and costs in Africa, 2008 Selected initiatives for efficient road transport

20. Islamic Development Bank 20 Logistics efficiency MDBs are working to:  Promote National Logistics Strategies Ex) National Logistics Strategy of South Africa Morocco Strategy for the Logistics Competitiveness  Reduce non-physical barriers to trade Trade and transport facilitation initiatives  Develop cross-border trade infrastructure and multimodal transport Selected initiatives for efficient road transport

21. Islamic Development Bank 21 Lawder Mukairas Road, Yemen ( طريق لودر مكيراس ) Partially financed by IDB through $7M Loan, 1990 -1997 Selected Projects for efficient and safe road transport

22. Islamic Development Bank 22 AQABA COASTAL HIGHWAY – JORDAN construction of a highway consisting of two parallel roads four lane, 17 km long, to separate the traffic of heavy goods vehicles heading to and from seaport from the local and international traffic, to reduce the congestion of traffic and to improve safety. IDB's Contributions USD 31.63 M, 2001 -2005 Selected Projects for efficient and safe transport

23. Islamic Development Bank 23 Taza – Oujda Highway, Morocco Interchange for safer traffic flow and grade separation with rail line. The Taza - Oujda highway segment (197-km) will ensure the connection with the capital Rabat and the economic hub Casablanca. The project will improve safety and efficiency. IDB financing US$ 135 M Selected Projects for efficient and safe transport

24. Islamic Development Bank 24 Hadath El Hubba Road, Lebanon Improve national/local roads with significant truck traffic IDB financing: US$ 16 M Selected Projects for efficient and safe transport

25. Islamic Development Bank 25 Bir El Heith – Qartaba road, Lerbanon Narrow, mountainous to be widened and re-aligned for safer operation especially by trucks (under construction). IDB financing: US$ 12 M Selected Projects for efficient and safe transport

26. Islamic Development Bank 26 MDBs role in road trasport is changing: from infrastructure to wider consideration of safety and efficiency Transport is playing a larger role in economic development, but its negative impacts (economic, social and enviornment) are worrying More focus on transport services, logistics and addressing non-physical barriers to enhance economic competitiveness Conclusions

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