Experiences in Financing Road Maintenance I s l a m i c D e v e l - PowerPoint PPT Presentation

Islamic Development Bank Experiences in Financing Road Maintenance I s l a m i c D e v e l o p m e n t B a n k

Outline • IDB Group • Project Cycle and Infrastructure Operations • Transport Division • Road Maintenance & IDB’s Experience • Conclusion 2 I s l a m i c D e v e l o p m e n t B a n k

IDB Group at a Glance The Islamic Corporation for the Islamic Research & Training Insurance of Investment and Export Institute (IRTI) Credit (ICIEC) Boost trade among OIC Member Countries;   Serve as research and training arm of the IDB;  Offer Shariah-compliant export credit Lead development of the Islamic Financial  insurance and re-insurance; Services Industry (IFSI) to support socio-  Provide political risk insurance to encourage economic development of MCs; investment flows. Activities: training, research, advisory, capacity  building, etc. Islamic Corporation for the Devt. Of International Islamic Trade Finance the Private Sector (ICD) Corporation (ITFC) Promote private sector development in  Advance trade across the Islamic world; Member Countries;  Encourage intra-trade across OIC Member Facilitate access to Islamic capital markets;   Countries;  Mobilize additional financial resources for Help businesses to better access trade finance; private sector;  Promote entrepreneurship, and encourage  Provide them with the necessary trade-related  capacity building. cross- country investments. 3 I s l a m i c D e v e l o p m e n t B a n k

56 Member Countries across 4 Continents 20. Indonesia Regional Office in Dakar Covers 11 21. Iran Countries in West Africa 22. Iraq 23. Jordan 24. Kazakhstan 25. Kuwait 26. Kyrgyz Republic Regional Office in Rabat Covers 27. Lebanon four Countries in North Africa 28. Libya 29. Malaysia 30. Maldives 31. Mali Regional Office in Almaty Covers 32. Mauritania 6 Countries in Central Asia 33. Morocco 34. Mozambique 35. Niger 36. Nigeria 37. Oman Regional Office in KL Covers 3 Countries in Far East Asia 4 I s l a m i c D e v e l o p m e n t B a n k

Credit Rating Project Finance Trade Finance Insurance Asset / Fund Management Capacity Development Research Special Assistance & Scholarships 5 I s l a m i c D e v e l o p m e n t B a n k

II. Project Cycle and Infrastructure Operations 6 I s l a m i c D e v e l o p m e n t B a n k

Programming • MCPS - OCx Evaluation Identification • Independent • MCPS – CTY Evaluation Project Cycle Implementation Formulation & and Monitoring Appraisal • Sector • Sector Departments Departments I s l a m i c D e v e l o p m e n t B a n k

IDB Infrastructure: Geographic Distribution Aggregate Infrastructure Financing Major Recipients Since Inception (US$ millions) Since Inception EGYPT MOROCCO Regional Middle East and Sub Sahara Africa IRAN 2% North Africa 14% PAKISTAN 45% TURKEY TUNISIA South & South BANGLADESH East Asia 15% BAHRAIN UZBEKISTAN AZERBAIJAN SAUDI ARABIA SENEGAL TURKMENIS… Central Asia OMAN 24% INDONESIA US$ 29 billion GABON 0 1000 2,000 3,000 I s l a m i c D e v e l o p m e n t B a n k

IDB Infrastructure: Sector Distribution Aggregate Infrastructure Financing Significant Scale Up (2006-14) Since Inception 3.5 Other 2.9 Transport 2.7 Urban 5% 2.6 2.5 2.5 Development 32% 14% 2.1 1.5 1.2 Industry & Mining 13% Energy 36% US$ 29 billion US$ 21.5 billion * Total Approvals less Cancellations I s l a m i c D e v e l o p m e n t B a n k

III. Transport Division 10 I s l a m i c D e v e l o p m e n t B a n k

Transport Division Key Focus Areas • Development of International Transport Corridors – Trans-Sahara Highway (TSH) – CAREC Transport Corridor • Improve Transport Infrastructure – Roads, Railways, Airports, Seaports • Increase Accessibility – Rural Networks Significant Projects Sr. Project Description IDB Participation (US$ m) Country No. 1. Western-Europe – Western-China Road 224 Kazakhstan Corridor 2. Padma Multi-Purpose Bridge 140 Bangladesh 3. Akieni- Okondja Road 107 Gabon 4. Marrakech - Agadir Highway 106 Morocco 5. Regional Roads Development 65 Indonesia 6. Singrobo-yamou Soukro Highway (Phase III) 61 Cote d'ivoire I s l a m i c D e v e l o p m e n t B a n k

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IV. Road Maintenance 13 I s l a m i c D e v e l o p m e n t B a n k

Road Maintenance 1. Routine Maintenance: small tasks with frequently • vegetation control, repairing, • replacing signs and other roadside equipment, • clearing drains and culverts. 14 I s l a m i c D e v e l o p m e n t B a n k

Road Maintenance 2. Periodic Maintenance: Maintenance undertaken at intervals of several years or more; • resealing, • resurfacing, • overlay, • reconstruction. 15 I s l a m i c D e v e l o p m e n t B a n k

Road Maintenance • 3. Urgent Maintenance: unforeseen repairs requiring immediate attention, examples are; • collapsed culverts, landslides that block roads 16 I s l a m i c D e v e l o p m e n t B a n k

Why road maintenance is so important? • In order to sustain the benefits of road improvement, it must be followed by a well- planned program of maintenance. • Without proper maintenance, road infrastructure can fall into disrepair, rapidly. • This results with preventing positive outcomes of the longer term impacts of road improvements on development. 17 I s l a m i c D e v e l o p m e n t B a n k

Why «timely» maintenance is important? • If defects are neglected and/or delayed; • All road may fail completely, • This requires full reconstruction (which means more and more investment), • And...this is much more costly 18 I s l a m i c D e v e l o p m e n t B a n k

How the economy is related with this? • Delayed maintenance; o Increased vehicle operating costs, o Traffic safety is put at risk, o Efficiency is reduced, o Reluctance by transport operators to use the roads. • Result; o a heavy burden on the economy, o passenger and freight services are reduced, o loss of economic and social development opportunities. 19 I s l a m i c D e v e l o p m e n t B a n k

IDB’s Experience on Road Maintenance Case: Kazakhstan Aktobe-Makar Road Improvement Project 20 I s l a m i c D e v e l o p m e n t B a n k

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Current poor road conditions 22 I s l a m i c D e v e l o p m e n t B a n k

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Project Scope Civil Works Consultancy Services  Reconstruction and maintenance -  Construction supervision  (ESIA) and E&S Management Plan 156 km Road.  ESMP Implementation (ESMP) supervision  Road Safety Components  Road Safety Audit Project Scope  Project Management Consultant  Financial audit of all project  Capacity Building for EA components. Institutional Support Financial Audit 24 24 I s l a m i c D e v e l o p m e n t B a n k

Project Components 1. Civil Works 2. Consultancy Services 3. Road Maintenance Equipment: including the Axle Load Control equipment for ensuring sustainability of the project. 3. Land Acquisition ( by GoK) • Total Cost USD 273m 25 I s l a m i c D e v e l o p m e n t B a n k

Outputs • 156 km national road (4 lanes from km 11- 100, and 2 lanes from km 100 - 160) by 2021. Carriageway width is 7.5 m shoulder width is 1.5-3.75 m. • 50% reductions in accidents • 30% decrease in vehicle operating costs • Average speed from 40 km/hr to 80km/hr • Better, faster and safer transport 26 I s l a m i c D e v e l o p m e n t B a n k

THANK YOU I s l a m i c D e v e l o p m e n t B a n k