Urban Infrastructurefor Pro-Poor Growth in Emerging AsiaThe Challenge of Urban Transportation

Presentation at ABCDE, Tokyo 29 May 2006 Dr. Norbert Kloppenburg, Senior Vice President Asia,

KfW Development Bank

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Urbanisation in Asia (and the World)

Rapid migration to cities takes place Poverty challenge Environmental challenge

Cities must prepare themselves – fast"Inefficient urban planning/ spatial decisions don’t go away!"

Large investment needs

1960

2025

2000

1980

0

25

50

75

100

SSA SA MENA LAC OECD EAP

Urban population (% total population)

Chart and quotation taken from previous presentation (World Bank)

500 million more people move into Asian cities

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Urbanisation as a Chance for Pro-Poor Growth and Development

Higher average per-capita income

Economies of scale / scope in infrastructure service provision

Opportunities

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Urban Mobility as a Key Factor…

… for the working of the urban economy Time wasted Division of labour Location factor in attracting FDIs

… for the urban poor Share of income Mobility between living and working areas

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Maintaining Urban Mobility

Congestion in cities as a threat to competitiveness & investment environment & "liveability"

Public transport as (part of) the solution

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Individual Motorised vs. Public Transport

Poverty and distri-butional aspects

Environmental aspects

Individual motorised transport

affordable mainly to richer population usually does not pay for external costs (congestion, pollution, accidents)

up to 10 times more energy consumption of cars vs. buses / trams / metro much higher pollution of motorcycles and cars vs. buses (esp. if CNG powered) and tram / metro systems

Public transport systems (bus, tram, metro)

affordable to broader population poverty targeting possible

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Efficient public transport: Main Challenges

Planning, implementation, management

Financial resources / Funding

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Role of (bilateral) development banks

Providing advice on transport system design, implementation and operation

Providing funding at favourable conditions to match long maturities of transport infrastructure investments

KfW involvement:Planning and financial support for commuter and urban mass rapid transport systems in China, Colombia, Indonesia, Tunisia and Turkey

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For Discussion: Challenges for the (Bilateral) Development Banks

Transport-specific

More general (urban infrastructure / development)

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Thanks you!