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Integrating environmental and energy aspects in Urban planning and Urban Transport Planning examples of AFDs approach in Asian

emerging countries

H.Breton AFD Bangkok Feb. 2009


1/ The AFD group 2/ The Urban transport sector in the framework of AFDs strategy of intervention in Asian emerging economies: rationale, supported approaches, levels of interventions and tools 3/A few recent examples of TA in Asia: China, Thailand

The AFD group

French ODA Agency: State-owned ; follows banking regulations

AfD PROPARCO : financing of the private sector French GEF secretariat

Present in 60+ countries, in Asian emerging countries since 2004 (China) EUR 3 billion annual commitments
Asia region = average of 20-25% of commitments

Wide range of financing tools

Grants (projects, study funds) Sovereign loans
(from concessional to market conditions) (concessional or market conditions)

Non sovereign loans

Private sector loans Partial risk guarantees, loan guarantees Guarantees on loans in local currency Equity financing

Untied aid

AFDs approach to Urban Transport in Asian emerging countries

The urban sector has always represented a sizable part of AFDs portfolio worldwide: support to urban infrastructure projects, to urban planning and city development strategy, decentralization, etc. along varied rationales: poverty alleviation, economic development, strengthening local authorities, local governance, the environment

In Asian Emerging Countries, AFD interventions in all sectors are driven

by a global environment rationale (including Climate change, Biodiversity): The Urban Transport sector has an important place in AFDs strategy in Asian emerging countries

AFDs approach to Urban Transport in Asian emerging countries

economic growth urbanization process motorization urban de-densification decrease of public transport congestion

accelerated growth of energy demand in transport and associated CO2 emissions

Adequate urban development and urban transport policies can help curb emissions of GHG while providing economic benefits and contributing to reducing local air pollution.

Opportunity in time as urban infrastructure being fast developed, structuring role of transport infrastructure

AFDs approach to Urban Transport in Asian emerging countries

Policies/strategies supported
technological approaches (vehicles, fuel, traffic management tools, etc..) Incentives, regulatory, fiscal-based approaches development of public transport (increasing share of public transport in modal split) land-use, location efficiency, long-term transport policies linked to land use development policies

Quantitative aspects: validity of strategies towards CO2 emissions reduction in urban transport
CO2 reduction analyses and strategies in urban transport are complex and contextspecific Important parameters include: . energy mix of country . load factor: passengers/vehicle.km (optimization of operations, frequency/load; attractivity-quality/tariffs-) . cost of tCO2 spared . reliable transport demand data/projections

AFDs approach to Urban Transport in Asian emerging countries

Adapted strategies can yield important CO2 reduction and energy consumption reduction compared to base case (up to 20% compared to basis case scenario in Wright &Fulton studies). Amounts can be substantial (600 000t/year in Bogota 8Mhab, 350 km BRT+ system) Strong impact of modal switch to performing Public Transport modes (with good load factor and energy efficient traction). 1% reduction in private car modal share implies a 1 MtCO2 reduction over 20 years in 10 M trips/day reference case Very distinct advantage of comprehensive/integrated package type solutions with multimodal public transport system (from facilities for pedestrians, bicycle, to bus, BRT, LRT, MRT), integrated, and accompanied by other measures (fuel conversion, fiscal incentives, traffic management, road use charging) as opposed to stand-alone projects/solutions High potential of location efficiency policies (implementation difficult however) Cost of spared tCO2 can be modest (USD 30 in case of package BRT+ soft modes, with 20 years amortization period) contrary to common perception BRT and LRT can be comparable in terms of CO2 emissions (in coal-based energy mix context), but generally not in terms of costs; MRT systems can induce heavy upstream emissions during construction Most often consistency of CO2 reduction/energy efficiency strategies with project/program economic return objectives social and local environmental objectives

AFDs approach to Urban Transport in Asian emerging countries

Energy / CO2 assessments can constitute an interesting angle within overall appraisal of projects/programs Land-use/urban transport integrated approaches as much as possible

Intervention at planning /mobility plan /programming level essential

AFDs approach to Urban Transport in Asian emerging countries, Financing tools and levels of intervention
Direct funding of projects by AFD loan (AFD appraisal based on economic, financial, technical viability of projects and including energy-climate change impact) Support at pre-feasibility or feasibility stage (through grant financing mobilized by AFD and French financial authorities) . support to energy /climate evaluation, economic, travel studies: - validation of technical arrangements (e.g. modal choices, implementation of ITS, traffic management systems) - validation of operational/institutional arrangements (phasing, development, operations, technical financial viability ) . leading to or accompanying loan financing

Support to formulation of long-term policies, plans, upstream of projects, through grant

financing . mobility plan, transport planning exercises, urban development plans . long term partnership developed over time, leading to energy-friendly policies, urban or transport plans. . leading to loan financing of projects.

Example :Guiyang Transport project, AFD TA support

- Population 3.5 M - Greater Guiyang development strategy speed up the urbanization process - Up-dating process of the 2020 Urban Master Plan and Comprehensive Transport Plan - WB-supported Guiyang Transport Project (2007) -Support to environmental management and transport planning capacities needed


Example :Guiyang Transport project, TA support

Objective : assist Guiyang establish a comprehensive Transport plan, covering the Greater Guiyang area and comprising all transportation modes, which will take into account environmental and energy consumption aspects

Contents . Transport demand model for Greater Guiyang (transport network and travel demand analysis capabilities; all modes, traffic-related air pollutant and energy consumption estimations derived from the model) . Strategic Environmental Assessment (SEA) (focused on energy aspects; overall assessment of the urban development policies and specific assessment of the Transport Plan; using a mix of qualitative assessment and quantitative data; recommendations integrated in transport plan) . Support to Transport Planning Process (facilitating integrated approach from an institutional point of view)


Example :Guiyang Transport project, TA support

Lessons learned

Requirements . Integration in formal planning exercise: - appropriate timing - methodological integration - inter-departmental collaboration . Political interest and will at municipal level . Legal framework + guidelines? Benefits and Co-benefits .Global Environmental, local environment, political, social, economic (economic benefits of better-dimensioned integrated system, city attractiveness, etc). SEA a comprehensive tool to program appraisal and analysis .Long term partnership with development partners related to future investment .Field open to city-city international cooperation Contents

Bangkok, Thailand AFD TA support

Objectives under the Urban Transport Development Partnership -ADB, WB, JBIC, AfD-) evaluate tools and methodologies for Strategic Environmental Assessment of Urban Transport system in Bangkok TA provides to central authorities (Ministry of Transport, Office of Transport and Traffic Policy and Planning) - references to international best practices; transport planning/ global environment - institutional recommendations as to integration of SEA exercises in the decision-making process for the development of the Transport System in the BMA - technical recommendations for the improvement of the existing Transport Demand Model

Bangkok, BMA Thailand AFD TA support and investment financing (under consideration) Objectives support the implementation of the climate change action plan of BMA TA provided towards identification of climate/economic meaningful activities and climate change governance All sectors (Urban transport (half of Bangkok GHG emissions) energy efficiency in buildings, waste management, renewable energy, urban planning and green areas) Eventual financing of investments (a direct soft loan to BMA is considered to finance a part of the investments costs related to the climate change action plan)

Thank You





CO2 Reduct. 20 years x1000t

cost t CO2 USD 1 906 66

CO2 reduction rank 7


BRT+5% 126MUSD BRT+10% 250 MUSD Walking 20-25% 58 MUSD Bicycle 1-5% 28 MUSD Bicycle 1-10% 58 MUSD Package BRT 10%, walking facilities, cycle ways 372 MUSD Fuel efficiency 15% over 20 years Road Use charges 2% incr.speed 10MUSD ERP 5% increased speed 200MUSD Elevated rail MRT 5%, no BRT 1250 MUSD Underground rail MRT +5%, no BRT 2500MUSD ERP+BRT 10% 450MUSD Source: P; Sayeg, ADB,2006 + Wright and Fulton, Transport reviews, 2005


4 228



3 427


Very High

1 922


Very High

4 161


Very High

12 398



2 134

Very High




2 007




2 320




1 236




5 041