AFD

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AFDs strategy of intervention towards
Sustainable Urban Transport in China
Herve Breton AFD Shanghai Nov.2008
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AFDs strategy of intervention towards
Sustainable Urban Transport in China

• ? Presentation of the AFD group
• ? Urban transport sector within of AFDs
  strategy of interventions in China
• . Rationale
• . Approaches supported
• . Financing tools and levels of intervention
• ? A recent example in Guiyang, Guizhou

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AFDs strategy of intervention towards
Sustainable Urban Transport in China
The AFD group

• French ODA Agency State-owned follows banking
  regulations
• AfD
• PROPARCO financing of the private sector
• French GEF secretariat
• Present in 80 countries
• EUR 3 billion committed in 2007
• Asia region average of 20-25 of commitments
• Active in China since 2003 , 320 MEUR total
  commitments to-date
• Wide range of financing tools
• Grants (projects, study funds)
• Sovereign loans (from concessional to market
  conditions)
• Non sovereign loans (concessional or market
  conditions)
• Private sector loans
• Partial risk guarantees, loan guarantees
• Guarantees on loans in local currency
• Equity financing

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AFDs strategy of intervention towards
Sustainable Urban Transport in China
Rationale of intervention

• The urban sector has always represented a sizable
  part of AFDs portfolio worldwide support to
  urban infrastructure projects, to urban planning
  and city development strategy, decentralization,
  etc. along varied rationales poverty
  alleviation, economic development, strengthening
  local authorities, local governance, the
  environment
• In China (as in other Asian Emerging Countries),
  AFD interventions in all sectors are
  systematically driven by a global environment
  rationale (including Climate change,
  Biodiversity)
• The Urban Transport sector has an important place
  in AFD s strategy in China

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AFDs strategy of intervention towards
Sustainable Urban Transport in China
Rationale of intervention, Importance of urban
sector within AFD strategy in China

• urbanization process
• motorization
• urban de-densification ?
• decrease of public transport
• congestion
• Adequate urban development and urban transport
  policies can help curb emissions of GHG while
  providing economic benefits and contributing to
  reducing local air pollution.
• Structuring role of Transport infrastructure
• Opportunity in time in China as urban
  infrastructure being fast developed
• Importance of local governments, municipal
  service companies, urban service PPPs as
  potential partners to AFD
• .

accelerated growth of energy demand in transport
and associated CO2 emissions (growth of energy
demand in transport is twice the world average)
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AFDs strategy of intervention towards
Sustainable Urban Transport in China
Approaches supported

• technological approaches (vehicles, fuel, traffic
  management tools, etc..)
• Incentives , reglementary, fiscal-based
  approaches
• development of public transport (increasing share
  of public transport in modal split)
• land-use, location efficiency,
• long-term transport policies linked to land use
  development policies
• Promotion of whole range of public transport
  means (from facilities for pedestrians, bicycle,
  to bus, BRT, LRT, MRT), integrated and
  accompanied by other measures (fuel conversion,
  fiscal incentives, traffic management, road use
  charging)
• ? Important parameters to energy consumption/
  CO2 reduction analysis and strategies
• . energy mix of country
• . passengers/vehicle.km (optimization of
  operations, frequency/load attractivity
  quality/tariffs)
• . cost of tCO2 spared
• ? consistency of energy consumption/ CO2
  reduction strategies with project/program
  economic return rationale
• ? local environment, social co-benefits
• Energy / CO2 impact evaluation one valid angle
  of overall appraisal of projects

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AFDs strategy of intervention towards
Sustainable Urban Transport in China
Financing tools and levels of intervention

• ? Direct funding of projects by AFD loan (AFD
  appraisal based on economic, financial, technical
  viability of projects and including
  energy-climate change impact)
• ? Support at pre-feasibility or feasibility stage
  (through grant financing mobilized by AFD and
  French financial authorities)
• . support to energy /climate evaluation,
  economic, travel studies
• - validation of technical arrangements (e.g.
  modal choices, implementation of ITS, traffic
  management systems)
• - validation of operational/institutional
  arrangements (phasing, development, operations,
  technical financial viability )
• . leading to or accompanying loan financing
• ? Support to formulation of long-term policies,
  plans, upstream of projects, through grant
  financing
• . mobility plan, transport planning exercises,
  urban development plans
• . long term partnership developed over time,
  leading to energy-friendly policies, urban or
  transport plans.
• . leading to loan financing of projects.

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AFDs strategy of intervention towards
Sustainable Urban Transport in China

• Example Guiyang Transport project, AFD TA
  support

• - Population 3.5 M
• - Greater Guiyang development strategy
• speed up the urbanization process
• - WB-supported Guiyang Transport Project
  (2006-2007)
• - Up-dating process of the Urban Master Plan
  2006-2020 and Comprehensive Transport Plan
• Support to environmental management and transport
  planning capacities needed

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AFDs strategy of intervention towards
Sustainable Urban Transport in China

• Example Guiyang Transport project, TA support

Objective assist Guiyang establish a
comprehensive Transport plan, covering the
Greater Guiyang area and comprising all
transportation modes, which will take into
account environmental and energy consumption
aspects
Contents . Transport demand model for Greater
Guiyang (transport network and travel demand
analysis capabilities all modes, traffic-related
air pollutant and energy consumption estimations
derived from the model) . Strategic
Environmental Assessment (SEA) (overall
assessment of the urban development policies and
specific assessment of the Transport Plan using
a mix of qualitative assessment and quantitative
data recommendations integrated in transport
plan) . Support to Transport Planning Process
(facilitating integrated approach from an
institutional point of view)
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AFDs strategy of intervention towards
Sustainable Urban Transport in China

• financing sustainable urban infrastructure
  investments in line with energy efficiency/GHG
  rationale
• providing support for the evaluation and
  improvement of planning, programs, projects, from
  a global environment standpoint, with
  co-benefits (economic, social, environmental)
• towards long-term partnership in support of
  public policies
• work with other stake-holders such as
  municipalities, and in full cooperation and
  complementarily with other French stakeholders
  (MEEDAAT, MEF) providing expertise or financing