Sustainable-Transport-Initiative ADB

SUSTAINABLE Operational Plan
TRANSPORT
INITIATIVE
SUSTAINABLE Operational Plan
TRANSPORT
INITIATIVE
July 2010
© 2010 Asian Development Bank
All rights reserved. Published 2010.

Printed in the Philippines.
ISBN 978-92-9092-101-1
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Cataloging-In-Publication Data
Sustainable transport initiative operational plan.

Mandaluyong City, Philippines: Asian Development Bank, 2010.
1. Transport. 2. Asian Development Bank. I. Asian Development Bank.
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Contents
List of Tables and Figures iv

Abbreviations v
Introduction and Background 1
Aligning ADB’s Transport Operations with Strategy 2020 1
Past ADB Transport Operations 2
Conceptual Framework for Sustainable Transport 4

Sustainable Transport Needs and Challenges 6
Continuing Needs and Challenges 6
Emerging Needs and Challenges 10
Urban Transport 10
Climate Change and Energy Efficiency 12
Regional Cooperation and Integration 13
Road Accidents and Emerging Social Issues 14
Future Sustainable Transport Operations 15

Mainstreaming Sustainable Transport in Existing Areas of Operations 15
Introducing New and Enhanced Sustainable Transport Operations 17
Urban Transport 17
Addressing Climate Change in Transport 19
Cross-Border Transport and Logistics 19
Road Safety and Social Sustainability 20
Preparing New Types of Sustainable Transport Operations 21
Implementation of the Operational Plan 23

Introduction 23
Time Frame 23
Directional Targets 23
Sustainable Transport Partnership Facility 24
Appendixes 26
1 Highlights from Strategy 2020 26
2 Some Considerations for Making Road Projects More Sustainable 28
iii
List of Tables and Figures
Tables
1 Dimensions within the Definition of a Sustainable Transport System 5
2 Opportunities for New and Enhanced Sustainable Transport Operations 18
3 Implementation Phases of the Sustainable Transport Initiative 23
Figures
1 Transport Lending (Public Sector) 2
2 Subsector Shares of ADB Transport Lending—Actual, Pipeline, and Target 24
iv
Abbreviations
ADB – Asian Development Bank

CO2 – carbon dioxide
DMC – developing member country
GDP – gross domestic product
IED – Independent Evaluation Department
ITS – intelligent transport system
NGO – nongovernment organization
OECD – Organisation for Economic Co-operation and Development
PPP – public–private partnership
PRC – People’s Republic of China
PSOD – Private Sector Operations Department
STPF – Sustainable Transport Partnership Facility
STI – Sustainable Transport Initiative
TCOP – Transport Community of Practice
v
Introduction and Background
Aligning ADB’s Transport Operations with Strategy 2020
Through Strategy 2020,1 the Asian Development Bank (ADB) has established three strategic
agendas to guide its work up to 2020—inclusive economic growth, environmentally sustainable Through Strategy
growth, and regional integration (Appendix 1). The need for better transport is common to each of
these agendas. Transport will be a major part of future ADB operations in infrastructure—one 2020, the Asian
of its five core areas of operational focus. Transport is also integral to the five drivers of change Development Bank
of Strategy 2020—private sector development and private sector operations, good governance
and capacity development, gender equity, knowledge solutions, and partnerships. has established
three strategic
In implementing Strategy 2020, ADB needs to adapt its transport operations to the changing
context of transport in its developing member countries (DMCs) in Asia and the Pacific. Various agendas to guide
factors—including economic growth, rising incomes, growth and aging of populations, trade, and its work up to
urbanization—have led to changes in the types of transport support that DMCs require. Many
DMCs have strengthened the capacity of their transport institutions, and their requirements for 2020—inclusive
ADB support have become more sophisticated. Also, it has become clear that, alongside its economic growth,
beneficial contributions, transport can have negative side effects, and these need to be carefully
avoided or mitigated. Some of these effects—e.g., congestion, damage to the local environment, environmentally
and traffic accidents—are localized, while others, including carbon dioxide (CO2) emissions, can sustainable
cause problems of global significance. Across the various aspects of ADB’s transport operations
that now need to be updated, the overarching theme is that ADB should assist DMCs to develop growth, and
transport that is more sustainable—economically, socially, and environmentally. regional integration
ADB has established the Sustainable Transport Initiative (STI) to align its transport operations with
Strategy 2020 and provide technical and other resources to build a portfolio of enhanced lending
and technical assistance to support sustainable transport. The STI is being implemented under
the guidance of ADB’s Transport Community of Practice (TCOP). Preliminary work on the STI was
conducted in 2008–2009. This included research on aspects of sustainable transport that were
relatively new to ADB, and the introduction of additional operational support for sustainable transport
in DMCs on a pilot basis. ADB also began to establish partnerships with development partners and
centers of excellence to strengthen collaboration and knowledge sharing on sustainable transport.2
The TCOP built consensus for the STI through a series of consultations among ADB transport
professionals, obtained advice and support from regional departments, and sought guidance from
ADB Management. Feedback was also received from Board members, DMCs and the international
1
ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020. Manila.
2
These include memorandums of understanding with the FIA Foundation for the Automobile and Society, International
Road Assessment Programme, the Korea Transport Institute and the Inter-American Development Bank, and a letter of
agreement with the Clean Air Initiative for Asian Cities Center. ADB is an active part of the Global Road Safety Partnership.
ADB is currently leading the Partnership on Sustainable Low Carbon Transport, the largest multistakeholder initiative on
sustainable low-carbon transport.
1
2 Sustainable Transport Initiative Operational Plan
transport community. Drawing upon the outcomes of this preliminary work, this report presents the
operational plan for subsequent phases of the STI for 2010–2020.3
The STI operational plan is a tool to help ADB adapt its transport operations to serve the changing
transport needs of DMCs. The plan seeks to build upon the strengths of ADB’s existing transport
operations, while introducing effective models of support for new and emerging fields of
sustainable transport. The operational plan is results-based with measurable, monitorable targets,
and includes details of required human and financial resources and institutional coordination
arrangements. By embracing all parts of the ADB transport community, it invites interdepartmental
and interdisciplinary approaches, and sends a signal that fresh ideas in transport are welcome
in ADB. Looking beyond ADB, the plan provides a basis for further strengthening partnerships
Transport is in transport. ADB’s updated focus can energize its partnerships with DMCs to work together on
addressing critical transport issues. It also creates a basis for development partners and centers
one of the main of excellence to join ADB as partners in the STI.
sectors that ADB
supports—a
reflection of the Past ADB Transport Operations
important role that Transport is one of the main sectors that ADB supports—a reflection of the important role that
transport plays in transport plays in enabling economic development and poverty reduction. Transport has accounted
for 21% of ADB lending since it was established in 1966, and 27% during 2005–2009.4 Within the
enabling economic 2010–2012 lending pipeline, projected transport lending is $3.4 billion per year.
development and
Most ADB transport lending has been for roads and, to a lesser extent, railways (Figure 1). ADB
poverty reduction has an established competence for supporting roads, including in the fields of infrastructure
Figure 1 Transport Lending (Public Sector)

1970–2009 2010–2012
Water Urban
Urban Transport
Transport
Transport 18%
7%
2%
Air Transport
2%
Railways Water
15% Transport
1%
Railways
16%
Roads Roads
74% 65%
Source: ADB.
3
Initial ideas for the STI were discussed at the ADB Transport Forum on Asia on the Move: Energy Efficient and Inclusive
Transport, held in September 2008. The draft STI operational plan was discussed at the 2nd ADB Transport Forum on
Changing Course: Pathways to Sustainable Transport, held in May 2010.
4
This does not include support for urban transport included within broader urban development projects, road
improvements that were part of agriculture projects, or transport operations of the Private Sector Operations
Department.
Introduction and Background 3
development (national and international highways, rural roads), institutions (asset management,
road funds, tolling, corporatization); services (logistics, trade); and social dimensions. In railways,
ADB has a smaller core expertise covering infrastructure development and some aspects of railway
policy and institutions. Historically, ADB has also supported ports and civil aviation through its
public sector lending operations, but this support declined in the 1990s when private capital
became more readily available in these subsectors. ADB has had limited involvement in urban
transport, but lending is growing fast due to demand from DMCs. The pipeline for 2010–2012
shows that urban transport forms 18% of the total lending pipeline.
According to the Independent Evaluation Department (IED), ADB transport projects have generally
performed well. During 1970–2005, 83% of transport operations were rated successful or better,
rising to 91.7% in 2000–2005. The proportion was higher for roads (90%) than for other modes
(75%). Transport projects consistently outperformed projects in other sectors—only 53.7% of
projects from other sectors were rated successful or better.
In recent years, ADB transport lending has gradually increased. There were 18 transport projects
for $2.2 billion in 2004, rising to 22 projects for $2.3 billion in 2009.
Conceptual Framework for
Sustainable Transport
Sustainable The approach to transport in Asia and the Pacific is being affected by changes in the way that
development is conceptualized and advanced. It is now widely accepted that development is about
transport supports much more than economic advancement, and that more attention should be given to understanding
a competitive its multiple effects on human life and the natural and physical environment. In this way the beneficial
effects of development can be harnessed and adverse effects avoided or minimized.
economy and
balanced regional Strategy 2020 seeks to align ADB’s operations with these changes in development thinking. The
overall focus is on helping DMCs establish a sustainable pattern of development, one that will
development, and enable all people to satisfy their basic needs and enjoy a better quality of life without compromising
promotes equity, the quality of life of future generations. Nowhere is the concept of sustainability more relevant than
in the transport sector. Transport is an integral part of most of the activities, goods, and services
including gender required for supporting and improving people’s lives, yet it also consumes resources and has
equity, within adverse side effects. A balance has to be found that will enable people’s transport needs to be met
in a way that neither harms nor depletes.
and between
successive It is appropriate that ADB should adopt sustainable transport as the guiding principle for aligning
its transport operations with Strategy 2020. While various definitions are possible, a sustainable
generations transport system may generally be considered to be one that allows the basic access and
development needs of individuals, companies, and society to be met safely and in a manner
consistent with human health. Sustainable transport supports a competitive economy and
balanced regional development, and promotes equity, including gender equity, within and between
successive generations. Environmentally, a sustainable transport system minimizes the use of land
and emissions, waste, and noise. It uses renewable resources at or below their rates of generation,
uses nonrenewable resources at or below the rates of development of renewable substitutes, and
limits emissions and waste within the planet’s ability to absorb them. In terms of cost, a sustainable
transport system is one that is affordable and operates efficiently, taking into account requirements
for investment in capacity and the need for maintenance.
Based on these considerations, the STI defines a sustainable transport system as one that is
accessible, safe, environment-friendly, and affordable.5 This incorporates multiple overlapping
dimensions of sustainability (Table 1).
5
Except for explicitly mentioning safety, this is similar to the definition given by the European Conference of Ministers of
Transport (ECMT). ECMT. 2004. Assessment and Decision Making for Sustainable Transport. ECMT, Organisation for
Economic Co-operation and Development (www.oecd.org).
4
Conceptual Framework for Sustainable Transport 5
Table 1 Dimensions within the Definition of a Sustainable Transport System
Definition of a Sustainable Transport System

Dimension of
Sustainability Accessible Safe Environment-Friendly Affordable
Economic and financial
Asset condition
Social equity
Health
Ecology
Physical environment
Air quality and noise
Climate
Source: ADB.
Sustainable Transport Needs
and Challenges
In the years Despite advances during recent decades, DMCs still have enormous needs for accessible, safe,
environment-friendly, and affordable transport. Their needs have increased as a result of population
ahead, the growth and the economic progress facilitated by past transport development.6 DMCs also need to
demand for freight adapt and improve upon the type of transport provided for this to be sustainable, and address new
and emerging transport needs and challenges.
and passenger
transport will
continue to grow Continuing Needs and Challenges
faster than gross Infrastructure gap. A recent study by the ADB Institute found that, in spite of considerable
investment, transport improvements have not kept pace with the growth in demand, and that
domestic product transport consequently remains a critical development bottleneck. There are gaps in every transport
subsector, at each level of the transport network, and in terms of accessibility, geographical
coverage, and interconnectivity between transport modes, particularly in poor regions. In the years
ahead, the demand for freight and passenger transport will continue to grow faster than gross
domestic product (GDP). In the next decade the countries of Asia and the Pacific will need to invest
$8 trillion in infrastructure, with much of this being for transport.7
Given the enormous financing requirements, DMCs will continue to need support from ADB and
other development partners to mobilize financing for transport infrastructure. The nature and extent
of this support will vary depending on a country’s size, capacity, and access to capital markets.
Some small, low-income countries may continue to depend on ADB and other development partners
to finance much of their transport investment requirements and to support capacity development.
However, for the region as a whole, financing from ADB will only cover a small portion of total
transport investment requirements. For this reason, ADB transport operations will need to give
much greater emphasis to leveraging additional financing from other sources, in particular by
acting as a catalyst, to bring about a much higher level of private sector participation in transport.
ADB will also need to add value to the investments through enhanced knowledge support to the
DMCs on strategic issues and in specialized fields of transport.
Roads. ADB transport lending has focused mainly on the road subsector (Figure 1). This period
has seen road networks and the capacity of existing roads in many DMCs significantly expand, and
the proportion of paved roads increase. ADB has financed roads in most DMCs, at all levels of the
network. During 2005–2008, ADB projects provided 1,400 kilometers (km) of expressways and
6
In the 1980s and 1990s, real per capita gross domestic product (GDP) rose more than 6% annually in East Asia and 3%
annually in South Asia. GDP growth in Asia and the Pacific has accelerated again since the Asian financial crisis; from
1999 to 2006 it averaged 6% per year. Annual growth in vehicle ownership was even higher—10% in India, Malaysia, and
Sri Lanka, and close to 20% in the People’s Republic of China (PRC).
7
ADB–ADB Institute. 2009. Infrastructure for a Seamless Asia. Tokyo.
6
39,100 km of national highways and provincial, district, and rural roads, benefiting an estimated
422 million people.8 With road traffic growing faster than GDP in most DMCs, there will be large
continuing needs for road construction and improvement in the years ahead, and ADB assistance
for roads will remain important.
Construction of expressways and national highways has reduced transport costs and journey
times, and thereby enabled economic growth. ADB support has helped assure project quality
and financial sustainability, introduce improved construction technologies and features such as
tolling, and strengthen safeguards against adverse social and environmental impacts. Alongside
its support for investments, ADB has provided assistance to strengthen the capacity of road
institutions. With varying degrees of success, it has helped governments with the difficult process
of modernizing and streamlining their policy and institutional arrangements for roads, including
through reengineering, commercialization, outsourcing, and privatization. A sustainable
approach to
Road improvements at lower levels of the network have played a key role in improving people’s
access to economic opportunities and services. In most DMCs, the incidence of poverty is highest maintenance has
in rural areas. Often this is linked to geographical remoteness and lack of access to markets and three pillars: an
services. In line with its overarching poverty reduction strategy, ADB has supported integrated road
network improvements in many DMCs and financed major rural roads programs. Between 1996 objective approach
and 2009, ADB provided $4 billion for rural roads, including large programs in India, Indonesia, to selection of
Pakistan, and Viet Nam. ADB has also provided support for strengthening institutional arrangements
and capacity for jurisdiction over rural road networks, project management, and financing and maintenance
execution of rural road maintenance. To help realize the full potential for rural roads to contribute works, effective
to more accessible and affordable transport, ADB has also supported improved rural bus services
to ensure adequate services, encourage competitive transport markets, strengthen approaches to execution of works,
service regulation, and finance facilities such as bus stations. Rural transport will continue to be an and adequate
important focus for ADB transport operations.
financing
For road investments to be sustainable, the road assets need to be maintained throughout their
intended economic life; otherwise the initial gains in improved accessibility, affordability, and safety
will gradually be lost. As a general rule, for every $1 of essential maintenance that is postponed, the
operating costs of vehicles increase by more than $3.9 In many DMCs there continue to be significant
shortcomings in the way that road infrastructure is maintained. DMC governments have often
emphasized new construction over road maintenance, with the result that maintenance backlogs
have built up. Some DMCs have also lacked the necessary policies, institutional arrangements, and
capacity for maintenance.
A sustainable approach to maintenance has three pillars: an objective approach to selection of

maintenance works, effective execution of works, and adequate financing. For roads carrying large
traffic volumes, ADB has helped create self-supporting road agencies (and sometimes public–
private partnership [PPP] concessions). These agencies finance road construction and operation
from toll revenue, and have the technical capability for undertaking maintenance programming and
recruiting capable maintenance contractors. For other parts of the road network, ADB has helped
establish road asset management systems, strengthen road maintenance agencies, introduce
maintenance contracting and performance-based contracts, and raise the level of maintenance
budgets. It has also helped some DMCs establish road funds to provide a more reliable source
of financing for road maintenance—such as from fuel taxes, vehicle fees, or other taxes—and to
improve accountability to the public. To support sustainability in the roads subsector, ADB should
8
ADB. 2009. Development Effectiveness Review 2008. Manila.
9
ADB. 2003. Road Funds and Road Maintenance—An Asian Perspective. Manila.
continue to include road asset management in its road subsector policy dialogue and operational
support, and assist DMCs to address accumulated road maintenance backlogs.
Railways. In contrast with the universal growth of road transport, rail transport in much of
developing Asia has experienced declining market share, with expansion and growth confined to a
small number of DMCs. The major exception is the People’s Republic of China (PRC), which has
steadily expanded its railways and reformed its railway institutions. This included a 60% increase in
route-kilometers since 1980, with a 17,000 km high-speed passenger network under construction.
On a lesser scale, India has invested substantially in expanding its network and initiating reforms.
Several other DMCs have also invested in new lines, but most of the region’s railways have seen
only very modest development and reform. The experience of the PRC has demonstrated that—
depending on traffic, geography, and other factors—modern railways can play a major role in
The major factor enabling inclusive economic growth, and can have positive effects on poverty levels in hinterland
that has limited the areas. It has also shown that railways are an important mode for sustainable transport, as they
offer significant safety advantages and have lower environmental impacts and emissions. The
scale of lending experience of other DMCs also shows that many railway administrations have struggled to adapt
for railways is to rapidly changing market circumstances, and have found it difficult to reform and modernize.
the reluctance Past ADB support for railways has been mainly confined to Bangladesh, the PRC, India, and
of railway Uzbekistan (new lending is also under consideration for Cambodia, Mongolia, and Turkmenistan).
During 2005–2008, ADB projects financed 3,200 km of railway lines (footnote 8). These were
administration mostly new lines in the PRC, which also account for two-thirds of the 2010–2012 railways lending
bodies to reform pipeline. The major factor that has limited the scale of lending for railways is the reluctance of
railway administration bodies to reform and modernize. In some DMCs, this has made it difficult to
and modernize justify large new investments. Another constraint is that it has not been possible to realize the full
potential of railways for long-distance transport because of restrictions in cross-border movements
as well as gauge differences between countries. In several DMCs there appear to be signs of a
new willingness to embrace railway reform and modernization. There may also be prospects for
regional cooperation initiatives to unlock the potential for developing cross-border railways. Another
opportunity is to support private railway concessions. Potentially, PPPs can relieve governments
of the burden of financing railways investments; speed up railway construction; and introduce the
modern, efficient, and cost-effective approaches to operations that are needed for railways to be
competitive.
Other transport modes. While the situation varies from country to country, ADB’s support for
transport modes other than roads and railways has been quite limited. Aviation, ocean shipping,
and ports have grown rapidly in developing Asia and the Pacific. However, in the early 1990s, ADB
largely phased out its support as the private sector was already performing effectively in these
areas. ADB did continue to support a small number of DMCs—such as Nepal, Mongolia, and
various Pacific DMCs—where aviation and ocean transport have a unique role due to limitations
in land transport, generally linked to factors such as geography and low population density. In
the case of inland waterways, the overall growth of traffic and facilities has been slower, and
ADB’s involvement has been small. Only a limited number of inland waterways within the region
have significant navigation potential. Their development has been constrained by the weakness of
existing institutions and lack of support for modernization and reform. However, as is evident from
the PRC’s ambitious plans to expand inland waterway transport, when governments are prepared
to address the existing constraints, inland waterways can offer a cost-effective, safe, and low-
carbon mode for certain types of freight, and ADB can play a useful supporting role.
Private sector participation. In the past decade, ADB assisted some DMCs with policy, legal,
regulatory, and institutional arrangements to support increased private sector participation in
transport. Through its public sector operations, ADB helped governments introduce additional
forms of private participation, such as build–operate–transfer concessions for toll roads and
bridges, public transport service concessions, and performance- and area-based operation and
maintenance contracts.10 Through private sector operations, ADB also financed innovative private
ventures in the transport sector, particularly build–operate–transfer concessions.
However, the scale of ADB’s support for private sector participation needs to be greatly increased.
Strategy 2020 has set an overall target that private sector development and private sector operations
should reach 50% of total ADB lending by 2020 (footnote 1). This will require ADB-wide changes,
including in the transport sector. During 2000–2009, ADB’s average annual private sector lending
for transport was only $23 million—less than 1% of its total lending for transport. This reflects a
series of problems and challenges, some concerning the wider environment for transport PPPs
in DMCs, and others concerning limitations in ADB’s approach to supporting transport PPPs.
At the country level, there are still problems in terms of policy, legal, regulatory, and institutional It is widely
arrangements that reduce the capacity of DMCs to attract private sector interest. Within ADB, the recognized that
transport lending pipeline in the country partnerships and strategies focuses primarily on public
sector projects. Few staff within its transport and urban divisions have practical experience of corrupt practices
transport PPPs. Until now, the regional departments and the Private Sector Operations Department remain a problem
have lacked effective arrangements for knowledge sharing, coordination, and collaboration in
support of ADB’s role in promoting transport PPPs. affecting the
performance
Social and environmental considerations. As incomes and education levels in DMCs have risen,
and information has become more widely available, so has the appreciation that different people of the transport
and groups have different development needs and that most development interventions have sector in DMCs
both positive and negative effects. In the 2 decades since 1990, ADB has steadily increased the
attention it gives to the social and environmental dimensions of development. This has changed
the way it formulates transport operations and how it conducts associated policy dialogue. All
transport operations now incorporate safeguards to protect people and the environment from
adverse effects. The introduction and application of safeguards to transport projects, together
with associated dialogue and capacity building support, have helped many DMCs reassess the
adequacy of their domestic policies and legal provisions for providing social and environmental
safeguards, and their monitoring and enforcement arrangements. In many DMCs this process is
ongoing and ADB transport projects can have further influence in the future. From an early stage in
formulating transport operations, ADB also conducts an assessment of social and poverty issues
that influences the approach and scope of the project. This has led to inclusion of special measures
or complementary project components to ensure that the poor or other disadvantaged groups
benefit from the project, and to address gender dimensions and the risks of HIV/AIDS and human
trafficking. Support from the Japan Fund for Poverty Reduction and other bilateral funds has played
a valuable role in helping ADB address such considerations in transport projects. Incorporating
social and environmental considerations will continue to be an important feature of ADB transport
operations.
Anticorruption. It is widely recognized that corrupt practices remain a problem affecting the
performance of the transport sector in DMCs.11 Through its involvement in the transport sector,
ADB has helped DMCs control such practices in a variety of ways, including at the project level
and through policy dialogue and advisory activities. These have included adopting internationally
recognized procurement procedures; scrutinizing project procurement activities; financial,
10
For example: ADB. 2001. People’s Republic of China: Corporatization, Securitization and Leasing for the Road Sector.
Manila.
11
According to Transparency International, civil works and construction ranks as the worst sector worldwide for payment
of bribes to public officials and state capture. Transparency International. 2008. 2008 Bribe Payers Index. Berlin.
procurement, and performance audits; supporting streamlining and reform of government

procurement procedures; and introducing whistle-blower mechanisms. ADB needs to continue
to pursue anticorruption and good governance in transport through policy dialogue and advisory
activities. ADB support for anticorruption efforts will remain relevant for transport operations.
Emerging Needs and Challenges
As a result of past economic development, and changes in settlement patterns and in the way of
life, DMCs need to address several emerging needs and challenges in the transport sector. Some
of these concern aspects of transport that have received limited attention in the past; others refer
In response to to aspects that have become more important and where ADB support needs to be increased.
growing urban
transport needs Urban Transport
and rising
With almost 3.9 billion people, Asia has 61% of the world’s population. Its share of the world’s
congestion, there urban population rose from 9% in 1920 to more than 48% in 2005, and is expected to reach 54%
has already been in 2030.12 About 44 million people are being added to Asia’s urban population every year, which
is equivalent to 120,000 people per day. A feature of this rapid urbanization is the growth of large
a sharp rise in cities and megacities—already the region contains 10 of the world’s 25 largest cities, and these
investment in are among the fastest growing.13 ADB has estimated that 80% of Asia’s new economic growth
will in future be generated in its urban economies, since this is where most jobs and employment
urban transport opportunities are located.14 However, there will also be large numbers of urban residents who are
systems, poor. About 70% (800 million) of the world’s poor live in Asia and, although poverty is sometimes
perceived to be a rural phenomenon, the incidence of urban and peri-urban poverty is significant
including ring and growing. Although the large cities of Asia are growing rapidly, and it is forecast that more
roads and mass than 80% of Asia’s economic growth will be in its urban areas, the reality is that, after more
than 3 decades of rapid economic growth, one of the defining characteristics of Asia’s cities is
transit systems poverty—almost 25% of Asia’s urban population is poor.15 About 250 million poor people in Asia
reside in urban areas,16 and this is projected to reach 300 million by 2020.
These trends are placing an enormous strain on transport and mobility in urban areas. Road
congestion already costs Asian economies an estimated 2%–5% of GDP every year due to lost
time and increased transport costs. Congestion occurs where demand exceeds the capacity of the
transport system, including when links in the strategic transport network are missing.17 In response
to growing urban transport needs and rising congestion, there has already been a sharp rise in
investment in urban transport systems, including ring roads and mass transit systems. Investment
will rise considerably in the near future.
12
World Urbanization Prospects: The 2007 Revision. Department of Economic and Social Affairs, Population Division.
New York.
13
By 2015, projected populations of the largest cities show four (Jakarta, Karachi, Mumbai, and Shanghai) in the
20 million–30 million range, and a further 9 cities with 10 million–20 million.
14
Lohani, B. 2005. Financing the City: ADB’s Perspective. Paper presented at the Asian Development Bank 38th Annual
Meeting, Istanbul, Turkey. 3 May 2005.
15
ADB. 2004. City Development Strategies to Reduce Poverty. Manila.
16
ADB. 2002. Beyond Boundaries: Extending Services to the Urban Poor. Manila.
17
There is always some level of congestion in a city. Efficient management of congestion requires that the costs of
congestion should not exceed the costs of available mitigation measures.
To provide sustainable urban transport solutions, the countries of Asia and the Pacific need to
address rapid motorization, which is a major cause of congestion and pollution. As a result of rising
incomes, per capita vehicle ownership is rising exceptionally fast; motor vehicle fleets are doubling
every 5–7 years. Emerging Asian countries were expected to add 35 million vehicles between
2006 and 2009.18 Since fleets are growing from a low base, very rapid growth will continue for the
foreseeable future unless other transport solutions can be found.19 The 10 countries in the world
with the highest private vehicle future demand index are in Asia; these include the PRC, India, and
Indonesia, the three most populous countries in the world.
Uncontrolled growth in urban road traffic and rising congestion are also compromising the health
and safety of urban dwellers. The region’s cities suffer from the highest air pollution levels in the
world, with as much as 80% attributable to transport.20 Respiratory ailments and other diseases
related to local air pollution contribute to the premature death of more than 500,000 people each …the emerging
year. According to the World Health Organization, this imposes an economic cost of up to 2%–4% urban transport
of GDP in many countries.21 A recent study estimated that 350,000 lives were lost in 2003 due to
air pollution in cities in the PRC, and that air pollution in the PRC resulted in more than 250,000 problem will be the
new cases of chronic bronchitis. The value of lives lost was equivalent to 4% of the PRC’s GDP. biggest transport
Reducing air pollution levels to those experienced in the United States in 1990 would save more
than 200,000 lives annually.22 Road traffic growth has also led to increased traffic safety risks for challenge for
pedestrians and cyclists. developing Asia
The unprecedented growth in private vehicle ownership poses a serious development challenge. As and the Pacific in
some large Asian cities are discovering, constructing urban roads will not in itself provide a solution. the coming years
Constructing new roads leads to more purchases of private vehicles, which eventually leads to the
roads again becoming congested. Moreover, further road building faces severe practical limitations
and escalating costs due to the shortage of land in urban areas.
Given its scale and significance for global climate change, the emerging urban transport problem
will be the biggest transport challenge for developing Asia and the Pacific in the coming years.
Urban transport provision and urban development need to be closely coordinated to create more
livable cities with shorter journey times and journey distances. There will also be a need to
improve nonmotorized transport, and this will require principles of nonmotorized transport to be
incorporated within the overall approach to urban planning. To arrive at sustainable solutions, there
will be a need for multimodal transport systems that use the most sustainable modes. To provide
passengers with alternatives to private vehicle use, high-quality urban mass transit systems will
need to be developed, including metro rail systems and bus rapid transit. Many of these projects
will be very costly and will require sophisticated approaches to financing, tariffs, technology, and
operations. At the same time, cities will need to find better ways of managing growth in vehicle
ownership and use. As has been demonstrated in Singapore, London, and elsewhere, vehicle or
road pricing mechanisms can play a central role. These have the added advantage that they can
generate financial resources to expand and maintain the urban transport network and systems.
18
ADB. 2006. Energy Efficiency and Climate Change Considerations for On-road Transport in Asia. Manila.
19
In 2006, there were only 28 vehicles per 1,000 people in the PRC and about 12 in India, compared with 586 in Japan
and more than 814 in the United States. World Bank. 2009. World Development Indicators. Washington, DC.
20
Clean Air Initiative for Asian Cities Center database. www.cleanairnet.org/caiasia/1412/article-59689.html (accessed
5 May 2010).
21
ADB. 2008. Managing Asian Cities. Manila.
22
Cropper, M. 2009. Measuring the Costs of Air Pollution and Health in China. www.rff.org/RFF/Documents/RFF
-Resources-173_airpollutioninChina.pdf
Climate Change and Energy Efficiency
Asia’s emissions from motorized transport have become a significant contributor to the global
problem of greenhouse gas emissions that leads to climate change. Energy use in the transport
sector is dominated by petroleum product fuels. The share of transport within total global greenhouse
gas emissions, in particular CO2, is growing rapidly, with the vast majority of projected increases
expected to come from developing Asia. In 2006 transport accounted for 13% of global greenhouse
gas, while 23% of global CO2 emissions from fuel combustion were transport related. Asia accounted
for 19% of total transport sector CO2 emissions in 2006 but by 2030, this figure will increase to
31%.23 Addressing transport emissions in Asia is therefore crucial for global CO2 mitigation.
As a result of rapid motorization, energy use for transport is expected to increase dramatically in
A further the years up to 2025, accounting for an additional 30% of world energy requirements. At 2.7% per
dimension of year, the projected average growth rate for transportation energy use in the non-Organisation for
Co-operation and Development (OECD) countries from 2006 to 2030 is eight times higher than the
climate change projected rate for OECD countries. The use of liquid fuels in the non-OECD transport sector as a
is that transport whole is expected to nearly double over the period. In the countries of developing Asia, passenger
and freight transport energy consumption is expected to increase more rapidly than in the other
investments are non-OECD countries.24 This will have significant implications for energy demand, pollution (global
vulnerable to and local), and energy security across the region. Most Asian countries are importers of fossil
fuels, and recent experience has shown that fuel price volatility can have severe impacts on the
the effects of economy and on the lives of poor and low-income people.
climate change
In view of the priority accorded internationally to the issue of climate change, there is an urgent
need for ADB to assist in developing effective, efficient solutions that can work on a large scale in
the transport sector in developing Asia. A useful conceptual tool to guide this work at country and
regional level is the “avoid–shift–improve” approach:25
Avoid means reducing the need to travel, for example by integrating land use and transport
planning to create local clusters of economic activity that require less mobility; by changing
how production is organized (e.g., doing more online); and by developing multimodal
logistics chains to cut unnecessary trips.
Shift means changing to more energy efficient modes or routes, such as shifting from road
to rail or waterways, or onto well-defined trucking routes, or shifting passengers from private
vehicles to public transport and nonmotorized modes.
Improve means using technologies that are more energy efficient, including through improving
vehicle standards, inspection, and enforcement; developing improved vehicle technologies
and fuels; and improving transport efficiency using information technology.
A further dimension of climate change is that transport investments are vulnerable to the effects
of climate change. Such effects include rises in sea level; changes in permafrost conditions
and locations; changes in precipitation; and increases in the frequency and intensity of storms,
floods, and droughts. These have consequences for the design, construction, and alignment of
roads, railway tracks, and other transport infrastructure. At the same time, the development of
transport infrastructure can inadvertently increase vulnerability to climate change effects, e.g.,
by reducing natural flood control ecosystems and disrupting migratory patterns of sensitive
23
International Energy Agency. 2008. World Energy Outlook. Paris.
24
Energy Information Administration. 2009 International Energy Outlook. www.eia.doe.gov/oiaf/ieo/transportation.html
25
ADB. 2009. Changing Course: A New Paradigm for Sustainable Urban Transport. Manila.
species. Transportation systems also influence patterns of settlement, which can result in
population concentrations in areas that are becoming more prone to extreme weather conditions
and disasters. To address these challenges, ADB is undertaking a number of case studies and
developing improved analytical tools to systematically integrate adaptation measures into ADB
transport operations.
Regional Cooperation and Integration
Globalization and rapid growth of trade are major drivers of economic development and poverty
reduction in Asia and the Pacific. By 2020 the region could account for one-third of world trade.
Intraregional trade now accounts for 55% of the region’s total trade, compared with 43% in the
early 1990s.26 Globalization has led to the region’s economies becoming more closely intertwined
with each other and the rest of the world, and international supply chains span the region to ADB support for
utilize each country’s comparative advantage. As tariff barriers have diminished, transport costs transport and trade
and bottlenecks have emerged as constraints to trade growth. These include the indirect costs
associated with unreliable transit times, border-crossing delays, handling and storage costs due facilitation has
to poor terminal infrastructure, risks of theft and property damage, and bribes. Finding solutions led to significant
to these problems is especially important for landlocked countries that rely on transit through
neighboring countries to gain access to international markets. savings in vehicle
operating costs
ADB supports several subregional programs that include substantial transport components.27
A recent IED sector assistance program evaluation found that the Greater Mekong Subregion and travel time
program has led to benefits that would not have been realized through national initiatives alone.28
ADB support for transport and trade facilitation has led to significant savings in vehicle operating
costs and travel time, and reduced border-crossing times. It has also led to expanded economic
activities, with new industries and special industrial zones developing along the regional road
corridors. However, IED also found that, to achieve the full potential benefits, there is a need to
improve the “software” aspect of cross-border agreements and regional institutions.29
In adopting regional cooperation and integration as one of ADB’s three long-term strategic agendas,
Strategy 2020 challenges ADB to substantially expand the scale, influence, and effectiveness of its
support for regional cooperation. In the transport sector, this will mean accelerating the investments
needed to complete the regional road networks, establishing programs of investments to create
a competitive regional railway network, and developing faster and more effective ways of helping
regional partners streamline cross-border rules and procedures. A recent ADB–ADB Institute study
sets the long-term vision of a “seamless Asia—an integrated region connected by world-class,
environmentally friendly infrastructure—in terms of both ‘hard’ (physical) and ‘soft’ (facilitating)
infrastructure,” and estimates that improved transport and harmonization of regulations to facilitate
new trade and transport patterns would generate $13 trillion in increased income for Asia over the
next 10 years (footnote 7).
26
ADB. 2006. Regional Cooperation and Integration in Asia. Background paper for the Asia 2015 Conference. London.
6–7 March.
27
ADB has been supporting several subregional programs: (i) Greater Mekong Subregion (GMS) Program; (ii) Central
Asian Regional Economic Cooperation (CAREC); (iii) South Asia Subregional Economic Cooperation (SASEC);
(iv) South Asian Association for Regional Cooperation (SAARC); (v) Indonesia-Malaysia-Thailand Growth Triangle
(IMT-GT); and (vi) Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
28
ADB. 2008. Sector Assistance Program Evaluation of Transport and Trade Facilitation in the Greater Mekong
Subregion—Time to Shift Gears. Manila.
29
IED also saw opportunities for expanding transport and trade facilitation by raising additional funding from the private
sector and other development partners.
Road Accidents and Emerging Social Issues
One of the most serious adverse effects of the rising traffic on Asia’s roads has been growing
road accidents. Out of an estimated 1.18 million deaths and millions of injuries globally each year
due to road accidents, 60% occur in Asia.30 This reflects not only traffic growth but also high road
accident rates—accident rates in DMCs are much higher than in advanced countries.31 The burden
of road accidents falls disproportionately on the poor. According to the World Health Organization,
almost half of those who die in road traffic crashes are pedestrians, cyclists, or users of motorized
two-wheelers, and this proportion is higher in poorer economies.32 Among the member countries
of the Association of Southeast Asian Nations (ASEAN) alone, road accidents cost an estimated
$15 billion each year.
Countries need While ADB and other international agencies have long supported road safety in developing
effective safety countries, such support has not been on a large enough scale or on a sufficiently sustained basis
to close this gap. Recent international initiatives have highlighted the extent of the road accident
legislation and problem, which has been identified as a major public health issue (the leading cause of premature
institutions, and death and disability for children aged 5 and above).33 At the First Global Ministerial Conference on
Road Safety in Moscow in November 2009, ADB and other multilateral development banks made a
good safety commitment to increase their support for road safety, including road safety management capacity;
practices safe approaches to the design, construction, operation, and maintenance of road infrastructure;
road safety performance measures; and mobilizing resources for road safety.
It will not be easy for DMCs to make transport safer. Road safety depends not only on having safer
infrastructure and vehicles, but also on changing driver behavior and supporting law enforcement,
emergency response, and medical facilities. The multisector nature of road safety means that
it requires coordination among government agencies and cooperation between government and
members of society. Countries need effective safety legislation and institutions, and good safety
practices. They also need systematic, comprehensive accident reporting systems; safer engineering
design and safety audit systems; education and awareness programs, aimed particularly at
children; improved driver training and vehicle testing; effective enforcement of legislation; and
emergency rescue systems.
In addition to road accidents, more attention needs to be given to realizing the potential positive
social impacts of transport and to avoiding and mitigating negative social impacts. Since ADB’s
overarching goal is poverty reduction, its work on transport should contribute to providing effective
solutions to the transport needs of the poor. More effective approaches are also needed for
addressing other social dimensions of transport, including gender mainstreaming, participation,
and social risks other than those covered by ADB’s safeguard policies. These include (i) more
participatory approaches to project planning and project strategies to protect against associated
HIV/AIDS and human trafficking risks, (ii) incorporating complementary development programs
and community-based maintenance, (iii) improving transport services, (iv) providing improved
facilities such as public toilets and pedestrian and bicycle lanes to make transport accessible
and safe for all users and social groups including women and the elderly, (v) applying core labor
standards, and (vi) using tariff and subsidy options to increase access for vulnerable groups.
30
ADB. 2005. Arrive Alive. ASEAN Regional Road Safety Strategy and Action Plan (2005–2010). Manila.
31
In most DMCs, the reported rates of road accident deaths per 100,000 people are several times higher than in advanced
countries. Due to underreporting, actual rates in DMCs are believed to be several times higher again.
32
World Health Organization. 2009. Global Status Report on Road Safety: Time for Action. Geneva.
33
Commission for Global Road Safety. 2009. Make Roads Safe A Decade of Action for Road Safety. London.
Future Sustainable
Transport Operations
This STI operational plan identifies three main categories of future ADB transport operations. The ADB’s existing
first category is operations to address continuing needs and challenges where ADB already has
a track record of effective operations. This category will constitute the majority of ADB transport
areas of transport
operations during the initial years of the STI operational plan and will still account for a substantial operations,
portion in 2020. For such operations, the STI will focus on mainstreaming sustainable transport
considerations into ADB’s approach. The second category is opportunities to introduce new or
focusing mainly
enhanced operations to address emerging needs and challenges where effective forms of support on roads, will
are already available. These will provide early opportunities to realign ADB’s transport operations
with Strategy 2020. The third category is potential elements of future sustainable transport
remain relevant in
operations that require research, consultation, and pilot testing before they can be included in ADB most DMCs in the
transport operations. These could lead to new types of operations in the later part of the operational
plan period.
next decade
Mainstreaming Sustainable Transport in Existing Areas of Operations
ADB’s existing areas of transport operations, focusing mainly on roads, will remain relevant in
most DMCs in the next decade. Having an established competence in these areas, as well as
close working relationships with executing agencies, ADB is well placed to continue to provide
support. At the same time, the adoption of sustainable transport as ADB’s guiding principle in
transport will require departments and transport staff to review their approach to the existing
areas of operations. They will need to question how well past approaches have addressed the
multiple dimensions of sustainable transport, and draw upon new sources of ideas and expertise
to strengthen sustainability in future. Sustainable transport will need to be mainstreamed into the
transport sector road maps in future country partnerships and strategies, and in the approach to
formulating and implementing transport and technical assistance projects. This change process
will require strategic leadership from the TCOP, staff training and capacity development, effective
use of knowledge and collaboration with knowledge partners, and greater selectivity to focus ADB’s
role on aspects of sustainable transport where it can offer greatest value addition.
While previous ADB projects and transport sector road maps (within country partnership strategies)
have addressed some dimensions of sustainable transport, few have done so comprehensively, and
there have been gaps and blind spots. For example, some past projects aimed to reduce transport
costs and increase vehicle speeds without considering how to avoid some of the adverse impacts
this might bring, such as increased road accidents, noise, and emissions. Some projects sought to
make long distance transport more accessible and affordable but did not improve connecting rural
roads and bus services or provide facilities needed for women’s use of transport. Some projects
emphasized cost recovery to support financial and asset sustainability but did not ask if tariff levels
were affordable or whether subsidies were justified for some groups. In future, the mainstreaming
of sustainable transport will involve giving attention to all the elements of sustainable transport,
and finding the best balance between them to develop transport systems that are accessible,
15
affordable, safe, and environment-friendly. Appendix 2 provides options that may be considered in
formulating future projects, taking the road subsector as an example.
Since rural roads play an important role in inclusive economic growth by making transport
accessible and affordable, ADB will continue to support rural roads in many DMCs. Where
feasible, ADB will support the use of labor-intensive approaches to rural road construction and
maintenance. ADB will also continue to support highways development, but will become more
selective—focusing on DMCs that still lack the necessary institutional capacity and access to
finance to independently develop and operate their highway networks, and on DMCs where ADB
can play a role in introducing PPPs for highways. Alongside its support for road investments,
ADB will continue to support institution building and capacity development in the road subsector.
To address the sustainability of existing road assets, it will provide increased support for road
Since rural roads asset management and road maintenance. This will include financing programs to establish and
play an important implement improved systems for selecting, implementing, and financing road maintenance works;
assisting DMCs to establish road funds; and financing investments in road rehabilitation and
role in inclusive programs to reduce maintenance backlogs.
economic
Mainstreaming sustainable transport in ADB will begin with disseminating and promoting the STI
growth by operational plan within ADB through seminars, workshops, and TCOP meetings. The STI was
making transport discussed extensively at the 2nd ADB Transport Forum in May 2010, in the presence of a large
audience of ADB staff, DMC officials, development partners, donors, representatives of the private
accessible and sector and nongovernment organizations (NGOs), and the media. The biennial ADB Transport
affordable, ADB Forum is ADB’s largest knowledge-sharing event for transport. The program for the 2010 forum
was devoted to the STI, and featured presentations and discussions on aspects of sustainable
will continue to transport that ADB expects to support in the future. As part of the forum, the advisory teams
support rural roads within the TCOP conducted activity clinics to assess how sustainable transport should affect ADB’s
approach in their respective fields of transport.34
in many DMCs
The TCOP committee members and advisory teams will carry forward the dialogue on sustainable
transport within ADB—at departmental level, within transport and urban divisions, and among staff
with expertise in various specialized fields of transport. In doing so, the TCOP will work closely with
other communities of practice that can contribute to ADB’s approach to sustainable transport—
including those for health, gender, environment, urban development, rural development, education,
regional cooperation, and private sector development—and will explore opportunities for involving
external partners in the TCOP. Building upon the outputs of transport forum activity clinics, each
TCOP advisory team will prepare a sustainable transport action plan for incorporating improved
approaches, strengthening capacity and staff training, and providing access to knowledge in their
respective specialized fields of transport. Drawing upon these action plans, the TCOP will prepare
and implement a consolidated program for staff training in sustainable transport to be financed
from the staff training budget.
The TCOP’s quality assurance role within ADB’s streamlined business processes will provide
an important entry point for mainstreaming sustainable transport within individual transport
operations. Beginning at the concept stage, the TCOP will use its sector-focused peer reviews of
transport sector road maps and individual transport project proposals to strengthen the sustainable
transport focus of future transport operations.
34
The TCOP has 16 advisory teams covering the following specialized fields of transport: highways, rural roads, road
asset management, road safety, road transport services, railways, ports and water transport, air transport, cross-
border transport and logistics, urban transport, climate change and vehicle emissions, private sector and public–
private partnerships, transport economics, financial management in transport, social and environmental sustainability,
and administration of transport projects.
The TCOP will establish a special section on sustainable transport in its electronic library of best
practices in transport. This will provide staff with web-based access to international and ADB best
practices. The TCOP will also work in collaboration and partnership with DMCs, development
partners, and centers of excellence to create new and improved mechanisms for knowledge sharing
on sustainable transport, including through websites, exchange visits, and workshops and seminars.
A further aspect of mainstreaming sustainable transport concerns private sector participation. Since
greatly increased private sector participation will be essential if the region’s enormous infrastructure
financing needs are to be met, ADB’s infrastructure operations will need to become more effective
at attracting private sector participation. This challenge extends across all infrastructure sectors—
not just transport—and will require ADB-wide efforts to strengthen ADB’s orientation toward
private sector participation, augment its capacity for supporting PPPs, optimize synergies between
regional departments and PSOD, and develop financing models capable of attracting private sector Emphasizing
participation on a much larger scale. Emphasizing private sector participation in transport will be private sector
an integral part of mainstreaming sustainable transport.
participation in
The final part of mainstreaming sustainable transport will be to encourage selectivity in ADB’s transport will be
approach to supporting sustainable transport. To optimize its contribution, ADB should focus on
roles within sustainable transport where it can significantly add value. The optimal focus will vary an integral part
from country to country but the following approaches will generally be considered: of mainstreaming
Use knowledge. In addition to country knowledge, the design of ADB operations should build sustainable
on ADB-wide and international best practices in sustainable transport. transport
Add value. ADB financing should be channeled to projects and activities where ADB
involvement will result in increased sustainability.
Be catalytic. ADB assistance should help DMCs overcome sector obstacles to wider adoption
of sustainable transport.
Scale up successful approaches. ADB should help DMCs replicate successful approaches to
sustainable transport on a larger scale.
Attract additional financing. ADB should use innovative approaches to attract partners to
provide additional financing to expand the scale of investments in sustainable transport.
Emphasize private sector participation. Within transport sector road maps and project proposals,
ADB should exert vigorous efforts to identify projects that can be implemented as PPPs.
Introducing New and Enhanced Sustainable Transport Operations
The STI operational plan identifies four opportunities for introducing new and enhanced ADB
lending operations to scale up ADB’s support for sustainable transport (Table 2).
Urban Transport
In its preliminary work on the STI, ADB has studied and pilot-tested various approaches to urban
transport operations, including public mass transit systems.35 While the scope of ADB urban
transport operations will depend on DMC needs, taking into account good practice and the
lessons from ADB experience, the following elements are likely to feature, both individually and in
combination:
35
Through the following regional technical assistance projects: ADB. 2006. Technical Assistance for Sustainable Urban
Transport. Manila (TA 6350-REG); ADB. 2007. Technical Assistance for a Development Framework for Sustainable
Urban Transport. Manila (TA 6416-REG); and ADB. 2009. Technical Assistance for Preparing the Implementation of
Asian City Transport–Promoting Sustainable Urban Transport in Asia Project. Manila (TA 7243-REG).
Table 2 Opportunities for New and Enhanced Sustainable Transport Operations
No. Name Focus of Lending Operations

1 Urban transport Scale up operations, model projects
2 Addressing climate change in transport Model projects for mode shifting and distance
shortening
3 Cross-border transport and logistics More effective transport facilitation within
planned and existing operations
4 Road safety and social sustainability Scale up operations, model projects, best
practices
In parallel with Source: ADB.
improving public
Public transport systems. These are needed to provide urban populations with safe, secure,
transport and accessible, rapid, efficient, and user-friendly transport, and to reduce pollution, congestion,
nonmotorized and accidents. ADB support will include bus rapid transit and rail-based public transport
systems.
transport, Nonmotorized transport. Integrated urban transport solutions should make provision for
cities need to nonmotorized transport infrastructure together with pedestrian zones and walkways,
segregated cycle paths, and bicycle parking and rental programs.
use demand Integrated urban transport planning. Urban transport plans should be integrated with urban
management to land use plans to support more efficient approaches to planning urban expansion and
redevelopment, limit trip lengths needed, make sustainable modes convenient for users, and
limit congestion optimize system integration.
and improve Demand management. In parallel with improving public transport and nonmotorized
transport, cities need to use demand management to limit congestion and improve traffic
traffic flows flows by reducing the attractiveness of private vehicle use in busy urban areas. Options
range from relatively simple systems, such as charging for vehicle licenses and parking fees,
to more advanced computerized road-pricing schemes.
Traffic management. Traffic engineering and traffic management systems are needed to
optimize traffic flows on the available urban transport infrastructure.
In view of increased interest from DMCs, ADB is rapidly scaling up its urban transport operations.36
To ensure the success of this process, the STI will provide regional departments with additional
expertise and resources to help them establish and consolidate high-quality transport lending
operations.
To assist regional departments while they are still building urban transport expertise, ADB will recruit
urban transport experts with strong operational expertise to work full-time in assisting regional
departments with urban transport operations. Through the TCOP, ADB will also form partnerships
with international and regional institutes and NGOs to provide specialized urban transport expertise
as needed.
36
Urban transport projects in the pipeline include Hanoi Metro Rail System and Ho Chi Minh City Metro Rail System in
Viet Nam, Sustainable Urban Transport in Georgia, Kathmandu Urban Transport in Nepal, Xi’an Urban Transport in the
PRC, Ulaanbaatar Urban Transport in Mongolia, Greater Dhaka Sustainable Urban Transport Corridor in Bangladesh,
Pimpri Bus Rapid Transit Project in India, and Yerevan Sustainable Urban Transport in Armenia.
Addressing Climate Change in Transport
While some approaches to addressing climate change and energy efficiency in the transport
sector may yield results only in the medium to long term—e.g., developing new types of vehicle
technologies—there are other opportunities for ADB to contribute to early improvements on a large
scale. This can be done by expanding operations to shift traffic to modes with lower emissions and
energy consumption, and improve transport efficiency on existing modes as follows:
Mode shifting. Railways and inland waterways can offer more efficient, lower emission
transport solutions for long-distance freight and passenger traffic. This is particularly so when
they are supported by improved logistics facilities and services to offer effective multimodal
transport solutions that combine the comparative advantages of the different modes. There
is also potential for increasing the share of mass transit systems and nonmotorized transport
Railways and
within urban transport. inland waterways
Distance shortening. Strategic investments in missing links can shorten journey distances
on existing modes, thereby reducing emissions and energy use.
can offer more
efficient, lower
Through the STI, ADB will expand its operations for developing competitive long-distance railways
and inland waterways, and provide support for investment in missing links that will reduce energy
emission transport
consumption and emissions through distance shortening. These will serve as demonstration solutions for
projects to encourage wider use by DMCs. In supporting railways and inland waterways, ADB
will be promoting business models capable of realizing the potential competitiveness of these
long-distance
modes—within the public sector, privately, or through PPPs. To support regional departments and freight and
PSOD in this work, the STI will make available additional specialized expertise in railways, inland
waterways, logistics, transport PPPs, and transport emissions measurement. The STI will also
passenger traffic
support regional departments and PSOD in accessing global climate change funds.
ADB will also mainstream climate adaptation measures into its transport operations. These will
include making climate adaptation adjustments to engineering specifications, alignments, and
master planning; incorporating associated environmental measures; and adjusting maintenance
and contract scheduling.
Cross-Border Transport and Logistics
As part of ADB’s support for regional economic integration, transport has a critical role to play in
enabling growth in trade. ADB has already provided substantial lending for constructing regional road
infrastructure and has a large pipeline of planned lending operations. The long-term effectiveness
and sustainability of these operations will depend not only on constructing transport infrastructure
but also on incorporating efficient solutions to enable seamless regional transportation of goods
from point of loading to point of discharge.
ADB’s regional transport operations will need to incorporate improved approaches to assisting
DMCs with transport facilitation.37 This includes simplifying formalities, processes, and procedures;
harmonizing national procedures, operations, and documents with international conventions,
standards, and practices; and standardizing in accordance with internationally agreed formats for
practices, procedures, documents, and information. There is also a need to address bottlenecks in
37
Trade facilitation also has an important role to play in regional economic integration. Trade facilitation may be defined
as the simplification and harmonization of international trade procedures including the collection of presenting,
communicating, and processing data required for more efficient movement of goods in international trade. Efforts to
support transport facilitation need to be closely coordinated with those to support trade facilitation.
freight mobility and reduce the turnaround time of cargo vehicles, including by providing facilities,
equipment, and infrastructure to streamline transport connections at gateways, ports, and feeder
connections, and creating dry-port facilities and logistics centers, including in hinterland areas.
Attention will be given to addressing the special needs of landlocked countries.
Under the STI, ADB will establish a specialized transport facilitation team at staff level. This
will be supplemented by technical assistance and by establishing partnership arrangements
with transport research and representative organizations. This will be used to lead a concerted
approach to implement transport facilitation on a corridor-by-corridor basis as part of ADB’s
support for regional transport corridors, including for both existing and proposed projects. The
time frames for this support will be adjusted to fit with the requirements to implement transport
facilitation solutions. Results monitoring will be integrated within ADB’s results-based monitoring
To have a more of subregional programs.
sustainable
ADB will also assist DMCs and regional cooperation organizations to draw up plans and investment
impact on road programs to create a competitive regional railway network. This can build upon recent progress
safety in DMCs, at the country level, including the development of advanced passenger and freight railways in
the PRC to link its major economic centers and connect with its borders, progress with railways
ADB needs to upgrading and introduction of cross-border services in India and Bangladesh, and the renewed
increase the scale, interest in regional railways among the countries of Southeast Asia and Central and West Asia.
This is potentially a major new area for regional cooperation, and ADB will be required to recruit
quality, duration, additional railway experts and long-term consultants.
and continuity of
Road Safety and Social Sustainability
its support for
road safety To have a more sustainable impact on road safety in DMCs, ADB needs to increase the scale,
quality, duration, and continuity of its support for road safety. Through the STI, ADB will develop
comprehensive road safety operations in selected DMCs by providing stand-alone lending for road
safety. These operations will support engineering and behavioral approaches to the safe design,
construction, operation, and maintenance of road infrastructure; the use of intelligent transport
systems (ITSs) for road safety; and the development of road safety management capacity, road
safety performance measurement, and resource mobilization. In view of the complex nature of
the road accident problem, the need to involve multiple agencies and civil society, and the current
limitations in the institutional capacity of DMCs in road safety, ADB will provide substantial technical
assistance for advisory, capacity development, and project preparation purposes.
To support social sustainability, ADB will expand its work on pro-poor dimensions of transport,
including through improving rural bus services and nonmotorized transport, and on other social
dimensions of transport—including gender mainstreaming, participation, HIV/AIDS and human
trafficking, core labor standards, and use of tariff and subsidy options—to optimize the balance
between accessibility and affordability.
To provide the expertise that regional departments will initially need to scale up and improve their
approach to road safety operations, the STI will recruit road safety experts to join staff of a new
road safety unit in the Regional and Sustainable Development Department. These staff members
will work full-time on assisting regional departments to prepare and implement model road safety
operations, and will also develop guidelines and sample terms of reference for incorporating
road safety considerations at each stage in the project cycle. To support this work and expand
ADB’s work on social sustainability, a technical assistance facility will be established to procure
specialized consulting services in the fields of road safety and social sustainability. ADB will also
establish partnership agreements to support increased collaboration with reputable international
road safety organizations and social development institutes active in developing Asia.
Preparing New Types of Sustainable Transport Operations
The STI operational plan also identifies several opportunities for further expanding and improving
ADB’s support for sustainable transport over the medium term. These focus on assisting DMCs
to incorporate sustainability considerations within transport investment planning and policies, and
conducting research and pilot testing to establish new types of support that ADB could introduce
within its operations by the second half of the STI operational plan period.
Sustainable transport development plans. In the 1970s and 1980s, the international community
helped many countries to prepare national transport plans that were used to guide prioritization
between modes and to plan transport investment programs. At that time the yardstick was economic
efficiency, focusing mainly on the direct economic costs and benefits of the different transport
modes used. Today this yardstick needs to be augmented to account for carbon emissions and
An efficient
other adverse externalities. A new type of sustainable transport development plan is needed to take transport
a fresh look at the future roles of different transport modes and to guide medium- and long-term
priorities and policies to bring about sustainable transport.38 Preparation of such plans can play a
pricing system
significant role in supporting application of the avoid–shift–improve approach. that correctly
Support for preparing sustainable transport development plans will enable ADB to assist DMCs
reflects transport
at a strategic level to guide the long-term transport mix in developing Asia. Through the STI, ADB costs including
will provide technical assistance support to help several DMCs prepare sustainable transport
development plans.39 The level of technical assistance resources will be sufficient to prepare highly
externalities is
professional plans that can become a model for wider replication. The DMCs will be selected a powerful tool
based on their level of interest in developing comprehensive integrated plans for sustainable
transport development. The plans will focus at the national, regional, or city level. To enable full
for promoting
consideration of choices between modes, the implementation arrangements will ensure that the a sustainable
plans are developed and approved at a high government level, e.g., by having an inter-ministerial
steering committee chaired by a minister responsible for finance or planning, or by a transport
and balanced
minister responsible for all modes. transport system
Transport demand management and road pricing. Trends in advanced countries suggest that
advanced approaches to transport demand management and road pricing have an important role
to play in sustainable transport in developing Asia, especially in urban areas. Private vehicles have
to be managed through physical means or pricing to address increasing congestion, pollution,
and safety and health aspects, and ensure full cost recovery. Restrictive measures—such as
traffic limitation for certain types of vehicles in certain areas or corridors, road rationing through
alternative driving schemes, vehicle purchase auctions and compulsory scrapping of old and
inefficient polluting vehicles—offer fairly simple but effective transport management tools. An
efficient transport pricing system that correctly reflects transport costs including externalities is
a powerful tool for promoting a sustainable and balanced transport system. Examples include
road tolling, area or cordon pricing for urban centers, parking pricing, subsidized transit fares,
pay-as-you-drive vehicle insurance schemes, and fuel or vehicle tax increases.
While ADB is already supporting simpler types of demand management within its operations, it has
potential to act as a center of excellence and knowledge hub to support the use of more advanced
38
Sustainable transport development plans would also have implications for other aspects of urban development and
renewal, and would require investments in other related infrastructure (e.g., infrastructure required for higher-density
developments near stations and transportation hubs).
39
In several DMCs, the United Nations Centre for Regional Development is supporting the preparation of environmentally
sustainable transport strategies.
transport demand management options, including automated systems of road pricing. As part of
the STI, ADB will build its knowledge and expertise in how to apply advanced traffic management
and road pricing in Asia with a view to introducing components in its transport operations in the
latter part of the STI operational period. To support this, ADB will establish a staff position for
a transport demand management and road pricing expert, establish partnerships with institutes
and existing government practitioners to support knowledge acquisition, and provide support for
future operation. It will also undertake regional technical assistance to examine and share best
practices and conduct prefeasibility studies of prospective advanced schemes that can be taken
up by regional departments.
Intelligent transport systems. The use of information technology through intelligent transport
systems (ITSs) is likely to be another major tool for sustainable transport in the future. ITSs already
The use of include equipment and in-vehicle technology and software for traveler information, transport
information systems management, driving assistance, and electronic transactions. They can benefit transport
managers, users, and the environment by offering improved operational efficiency and reduced
technology through travel uncertainty, and can reduce avoidable trips and increase safety. The use of ITSs can improve
intelligent transport real-time traffic management, reduce congestion, reduce the need for additional infrastructure,
and provide more accurate information to support traffic monitoring, forecasting, and investment
systems is likely to project design.
be another major
As part of the STI, ADB will conduct studies to assist DMCs to demonstrate the potential for using
tool for sustainable ITSs. It will also support development of the necessary environment and system architecture to
transport in support ITS acquisition, adaptation, and development at sector level, with a view to subsequent
expansion of ITS investment components within future ADB transport lending.
the future
Vehicle, engine, and fuel technology. Advances in vehicle technology are expected to influence
future cost-effectiveness, energy efficiency, and emissions reduction in the transport sector.
While ADB has little role in vehicle technology research and commercialization, it may be able to
support the introduction and take-up of more sustainable vehicle-related technologies by assisting
governments to establish and implement policies, standards, and enforcement mechanisms. It will
also explore potential roles as a catalyst to assist governments and vehicle manufacturers to work
together to develop more sustainable technologies.
Other future opportunities. During STI implementation, other opportunities are expected to also be
identified. These could include, for example, examining the potential of promising new transport
technologies; studies to improve understanding on behavioral determinants of transport demand,
congestion, and road safety; and updating ADB’s approach to economic analysis of transport
projects to incorporate various dimensions of sustainable transport. Depending on their relevance
and potential to contribute to sustainable transport, such additional opportunities could be
considered for inclusion in the STI.
Implementation of the
Operational Plan
Introduction The STI operational

The STI is a change initiative. It focuses on adapting ADB’s transport operations to serve the
plan indicates the
changing transport needs of DMCs, taking into account the diversity of these needs. The STI major directions
operational plan indicates the major directions of change required, and outlines the proposed
arrangements for establishing partnerships to support implementation.
of change required,
and outlines
Time Frame
the proposed
arrangements
Implementation will be undertaken in three phases (Table 3). Phase 1 will cover 2010–2011, and
its focus takes into account the need to initially mainstream sustainable transport and build ADB’s
for establishing
capacity for undertaking sustainable transport operations. It also allows for phases 2 and 3 to partnerships
incorporate the lessons from implementation of phase 1, and to introduce further types of support
for sustainable transport after conducting initial research and pilot testing. The STI operational plan
to support
will be updated before the start of phases 2 and 3. implementation
Table 3 Implementation Phases of the Sustainable Transport Initiative
Phase Years Focus

1 2010–2011 Mainstreaming sustainable transport in existing areas of operations
Initial implementation of new and enhanced sustainable transport

operations
Studies and pilot testing of new types of sustainable transport operations

2 2012–2015 Full implementation of new and enhanced sustainable transport operations
Initial implementation of new types of sustainable transport operations

3 2016–2020 Full implementation
Source: ADB.
Directional Targets
Implementation of the STI will build upon and extend the changing patterns in the transport lending
pipeline for 2010–2012 that are already evident in existing country partnerships and strategies.
There will be a progressive shift in the transport sector portfolio of ADB. The changes will include
(i) significant expansion of lending for urban transport and railway projects, and (ii) by 2020,
23
overtaking of lending for roads, although remaining a larger part of operations, by other transport
subsectors. Subsector shares within past transport lending and the lending pipeline, and directional
targets for 2020, are shown in Figure 2.
Figure 2 Subsector Shares of ADB Transport Lending—Actual, Pipeline, and Target
100
90
80
ADB plans to 70
establish a 60
Sustainable 50
%
Transport 40
Partnership 30
Facility to provide 20
a mechanism 10
for partners to 0
2000–09 2010–12 2020
provide financing Actual Pipeline STI Target
and expertise to
Urban Transport Air Water Rail Road
support the STI
Source: ADB. STI = Sustainable Transport Initiative.
Sustainable Transport Partnership Facility
ADB plans to establish a Sustainable Transport Partnership Facility (STPF) to provide a mechanism
for partners to provide financing and expertise to support the STI. The STPF will also act as a
catalyst to support the preparation and implementation of innovative forms of support for
sustainable transport within individual ADB operations.
The partnership window of the STPF will provide a mechanism for donors, research institutes,
and NGOs to provide financing, expertise, and in-kind support to contribute to the work of the
STI to improve and increase ADB’s operations to support sustainable transport. The following are
examples of support through this window:
Financing contributions. For financing the STI operational plan, the regional technical
assistance, or specific elements of these. This may include donor financing of partnerships
with centers of excellence (such as reputable institutes and NGOs with expertise in specialized
fields of transport required for the STI).
Expertise contributions. Provision of specialized expertise required for the STI core group
and for other possible STI roles through provision of staff on secondment, fixed-term staff,
and long-term consultants. This may include self-financed contributions of expertise by
centers of excellence.
Implementation of the Operational Plan 25
The innovation window of the STPF will provide grants to finance a range of measures that will
generally include one or more of the following:
Policy advisory work on sustainable transport. To support DMC transport strategies and
policies that provide incentives for the development of low-carbon transport—including
through land-use planning, hybrid and alternate fuel vehicles, fuel economy norms, traffic
demand management, and sustainable financing mechanisms.
Prefeasibility and feasibility studies for sustainable transport projects. For example, heavy
and light rail, metros, bus rapid transit systems, public transport services, franchising
structures, service rationalization, paratransit, and cycling and pedestrian infrastructure.
Finance “add-on” components to existing projects that enhance sustainability. For example,
safety components, traffic management, fleet renewal and replacement with low-emission
vehicles, integrating public transport systems and ticketing, bicycle hire schemes, and The STPF will
establishing revolving funds to finance sustainable transport improvements leveling in cities. provide partners
As transport is recognized as one of ADB’s areas of comparative advantage, and the STI operational with a unique
plan seeks to refine ADB’s transport operations to address key agendas that have widespread opportunity to help
international support, it is expected that development partners will wish to support the STI. The
STPF will provide partners with a unique opportunity to help in shaping ADB’s future approach to in shaping ADB’s
transport—one of the main sectors of ADB’s operations. future approach to
transport—one of
the main sectors of
ADB’s operations
Appendix 1
Highlights from Strategy 2020

Strategic Agendas
Inclusive Economic Growth

Support by the Asian Development Bank (ADB) will include investing in (i) infrastructure to
achieve high sustainable economic progress, connect the poor to markets, and increase
their access to basic productive assets; and (ii) education and essential public services,
such as water and sanitation, which particularly benefit the poor and women.
Environmentally Sustainable Growth

ADB will support the use of environment-friendly technologies, adoption of environmental
safeguard measures, and establishment of institutional capacities to strengthen their
enforcement.
Regional Integration
ADB will step up implementation of its regional cooperation and integration strategy
to accelerate economic growth, raise productivity and employment, reduce economic
disparities, and achieve closer policy coordination and collaboration in support of regional
and global public goods, including work to combat climate change and HIV/AIDS.
Drivers of Change
Private Sector Development and Private Sector Operations

To spur market-led growth, ADB will invest in infrastructure and advise governments on
the basics of a business-friendly environment, including reliable rules, regulations, and
policies that do not disadvantage private sector enterprise. Change will be catalyzed though
greater private investment in developing member countries through direct financing, credit
enhancements, risk mitigation guarantees, and innovative new financial instruments. ADB
will promote public–private partnerships in all core operational areas, gaining experience
first in middle-income economies, and then expanding the efforts to all developing member
countries.
Good Governance and Capacity Development

ADB will bring the four elements of good governance—accountability, participation,
predictability, and transparency—deeper into the mainstream of its operations and
activities. ADB will regard accountability for economic performance, effectiveness of policy
formulation and implementation, and the efficient use of public resources as essential to
preserving financial resources for development purposes.
Gender Equity
ADB will promote gender equity through operations that deliver specific gender outcomes,
such as improved access for women and girls to education and health services, clean water,
better sanitation, and basic infrastructure.
continued on next page
26
Highlights from Strategy 2020 27
continued
Knowledge Solutions
ADB’s knowledge services will address its clients’ immediate knowledge needs, while
determining and passing on best practices. ADB will support pilot projects from which
lessons will be distilled and disseminated. ADB will distribute knowledge in ways that have
both an immediate impact and catalytic force—e.g., the knowledge of how a developing
member country can approach public–private partnerships to provide social services and
achieve benefits for the poor.
Partnerships
To meet the region’s many development challenges and deliver aid effectively, ADB will
expand and diversify its engagement with partnerships. Current arrangements include
international development agencies, multilateral and bilateral institutions, and nongovernment
and community-based organizations. New arrangements that include the private sector and
private institutions will be forged.
Source: ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008–2020.
Manila. www.adb.org/documents/policies/strategy2020/Strategy2020.pdf
Appendix 2
Some Considerations for Making Road Projects

More Sustainable
Aspect of Sustainability Examples of Options to Consider
Affordability Affordability requirements of different social groups
Range of different technology options
Arrangements for provision and regulation of transport services
Approach to tariffs and subsidies

Accessibility Need for rural roads if there are major gaps in rural accessibility
Local road components to link new highways with hinterland population
Programs of small rural infrastructure investments to provide year-round

access, e.g., bridge repair, drainage, minor road improvements
Road maintenance and road Effective covenants on maintenance of Asian Development Bank–funded
asset management road sections
Support for sector-level improvements in asset management systems

and funding, with support continuing long enough to yield results
Knowledge sharing and collaboration across developing member

countries and regions
Road safety Road safety audits
Interjurisdictional road safety programs
Collaboration with private partners such as fuel companies and vehicle

manufacturers and distributors
Use of intelligent transport systems
Pedestrian and cycle paths

Environmental impacts Roadway size minimized so that land take is minimized
Dust minimized
Tighter vehicle emission and fuel quality standards supported
Inspection and maintenance schemes improved

continued on next page
28
Some Considerations for Making Road Projects More Sustainable 29
Table continued
Aspect of Sustainability Examples of Options to Consider

Social impacts Participatory approach to project planning and preparation
Roadway size minimized so that land take is minimized
Complementary development programs to realize potential opportunities

created by road improvement
Core labor standards
Community-based road maintenance programs
Pedestrian and cycle paths

Carbon dioxide emissions Reuse of road pavement materials
Vehicle standards and inspection to reduce emissions supported
Policy interventions to make users pay for adverse externalities through

congestion, road, or fuel pricing
Climate adaptation Climate resilience measures within engineering design
Health impacts HIV/AIDS protection strategies in large construction projects
Measures to reduce vehicle emissions and noise

Gender dimensions Community-based road maintenance programs
Facilities and standards for roads, buses, coaches, and stations
Measures to combat human trafficking

Needs of elderly and disabled Facilities and standards for buses, coaches, and stations
Approach to tariffs and subsidies

Source: ADB.
Sustainable Transport Initiative Operational Plan
Strategy 2020 sets the long-term strategic framework of the Asian Development Bank
(ADB) for 2008–2020. During this period, ADB lending and technical assistance operations
in Asia and the Pacific will emphasize inclusive economic growth, environmentally
sustainable growth, and regional integration. The Sustainable Transport Initiative
Operational Plan provides details of how ADB will update its operations in the transport
sector in line with Strategy 2020. ADB will focus on creating transport systems that are
accessible, safe, affordable, and environment-friendly.
About the Asian Development Bank
ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its
developing member countries substantially reduce poverty and improve the quality of life
of their people. Despite the region’s many successes, it remains home to two-thirds of the
world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling
on less than $1.25 a day. ADB is committed to reducing poverty through inclusive
economic growth, environmentally sustainable growth, and regional integration.
Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main
instruments for helping its developing member countries are policy dialogue, loans, equity
investments, guarantees, grants, and technical assistance.
Asian Development Bank

6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
www.adb.org
ISBN 978-92-9092-101-1
Publication Stock No. RPT102228 Printed in the Philippines

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SUSTAINABLE Operational Plan

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Sustainable transport initiative operational plan.

1. Transport. 2. Asian Development Bank. I. Asian Development Bank.

Asian Development Bank

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List of Tables and Figures iv

Conceptual Framework for Sustainable Transport 4

Future Sustainable Transport Operations 15

Implementation of the Operational Plan 23

ADB – Asian Development Bank

Aligning ADB’s Transport Operations with Strategy 2020

Figure 1 Transport Lending (Public Sector)

Table 1 Dimensions within the Definition of a Sustainable Transport System

Definition of a Sustainable Transport System

A sustainable approach to maintenance has three pillars: an objective approach to selection of

procurement, and performance audits; supporting streamlining and reform of government

Emerging Needs and Challenges

Climate Change and Energy Efficiency

Regional Cooperation and Integration

Road Accidents and Emerging Social Issues

Mainstreaming Sustainable Transport in Existing Areas of Operations

Introducing New and Enhanced Sustainable Transport Operations

Table 2 Opportunities for New and Enhanced Sustainable Transport Operations

No. Name Focus of Lending Operations

In parallel with Source: ADB.

Addressing Climate Change in Transport

Cross-Border Transport and Logistics

Preparing New Types of Sustainable Transport Operations

Introduction The STI operational

Phase Years Focus

Initial implementation of new and enhanced sustainable transport

Studies and pilot testing of new types of sustainable transport operations

Initial implementation of new types of sustainable transport operations

Figure 2 Subsector Shares of ADB Transport Lending—Actual, Pipeline, and Target

Sustainable Transport Partnership Facility

Highlights from Strategy 2020

Inclusive Economic Growth

Environmentally Sustainable Growth

Private Sector Development and Private Sector Operations

Good Governance and Capacity Development

continued on next page

Some Considerations for Making Road Projects

Range of different technology options

Arrangements for provision and regulation of transport services

Approach to tariffs and subsidies

Local road components to link new highways with hinterland population

Programs of small rural infrastructure investments to provide year-round

Support for sector-level improvements in asset management systems

Knowledge sharing and collaboration across developing member

Interjurisdictional road safety programs

Collaboration with private partners such as fuel companies and vehicle

Use of intelligent transport systems

Pedestrian and cycle paths

Tighter vehicle emission and fuel quality standards supported

Inspection and maintenance schemes improved

Aspect of Sustainability Examples of Options to Consider

Roadway size minimized so that land take is minimized

Complementary development programs to realize potential opportunities