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World Bank, Europe and Central Asia Transport Department

Workshop on investment, financial and technological aspects of the Model Highway Initiative ( MHI ) implementation Beyond Infrastructure: Building Roads as “Services” to the Users. World Bank, Europe and Central Asia Transport Department. Thessaloniki, Greece, 6-8 March 2012. Agenda.

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World Bank, Europe and Central Asia Transport Department

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  1. Workshop on investment, financial and technological aspects of the Model Highway Initiative (MHI) implementation Beyond Infrastructure:Building Roads as “Services” to the Users World Bank, Europe and Central Asia Transport Department Thessaloniki, Greece, 6-8 March 2012

  2. Agenda • World Bank Transport Business Strategy in Europe and Central Asia: • Demand • 5 strategic products • Defining Road User Services • What are Road User Services? • Why are Road User Services Important? • Setting the Policy Framework • Policy Objectives and Constituencies • Roles and Responsibilities of Stakeholders • Institutional Options • One sample: World Bank Support to Kazakhstan • Development of a Road Sector Strategy • Pilot Implementation

  3. Agenda • World Bank Transport Business Strategy in Europe and Central Asia: • Demand • 5 strategic products • Defining Road User Services • What are Road User Services? • Why are Road User Services Important? • Setting the Policy Framework • Policy Objectives and Constituencies • Roles and Responsibilities of Stakeholders • Institutional Options • One sample: World Bank Support to Kazakhstan • Development of a Road Sector Strategy • Pilot Implementation

  4. World Bank Transport Medium Term Business Strategy in Europe and Central Asia: WHAT OUR CLIENTS ARE REQUESTING Engaging the Private Sector Urban Mobility Management Improving Road Safety Strengthening Institutions (EU countries) Developing Trade Links Our Client Demand is Continuously Changing - Reflecting Evolving Needs and Challenges Managing Transport Assets Deeper Integration with Europe Local Connectivity and Access

  5. World Bank Transport Medium Term Business Strategy in Europe and Central Asia: FIVE PRODUCTS THAT WHAT WE PLAN TO OFFER Corporate Strategies 1. Regional Integration / Trade Facilitation 2. Asset Management 3. Urban Mobility 4. Local Access and Connectivity 5. Sector Governance ECA Strategic Pillars Competitiveness Inclusion Climate Change Governance

  6. Our Market Structure Is Broadly Clustered Around Three Types of (shifting) Demand KZ AZ UA Investment / Financing BY UZ KG MD TK TJ AM GE SR HZ MK MO BA RO AL RU KO TR BG PL Knowledge

  7. Our Opportunities Lie in the Diverse Nature of Our Client Demand • Relatively large investment lending opportunities • Investment lending can be leveraged to influence policy/institutions • Room for collaboration with other IFIs Predominantly Investment/Financing Driven Demand Mixed Demand • Important but limited investment lending opportunities • High demand for knowledge, but limited ability/willingness to pay for knowledge • High demand for sophisticated real-time knowledge, and ability/willingness to pay for services • Knowledge can still be bundled with financing through DPLs or P4R Predominantly KnowledgeDriven Demand

  8. Agenda • World Bank Transport Business Strategy in Europe and Central Asia: • Demand • 5 strategic products • Defining Road User Services • What are Road User Services? • Why are Road User Services Important? • Setting the Policy Framework • Policy Objectives and Constituencies • Roles and Responsibilities of Stakeholders • Institutional Options • One sample: World Bank Support to Kazakhstan • Development of a Road Sector Strategy • Pilot Implementation

  9. Road Users and the Services they Expect Shippers and Carriers Drivers and Passengers Local Communities

  10. Why Road User Services? Improved Quality and Safety of Travels Positive Impacts on the Local Economy – Jobs and Income Facilitate Transport and Trade Corridor Branding

  11. Agenda • World Bank Transport Business Strategy in Europe and Central Asia: • Demand • 5 strategic products • Defining Road User Services • What are Road User Services? • Why are Road User Services Important? • Setting the Policy Framework • Policy Objectives and Constituencies • Roles and Responsibilities of Stakeholders • Institutional Options • One sample: World Bank Support to Kazakhstan • Development of a Road Sector Strategy • Pilot Implementation

  12. Framework: Policy Objectives Industry: Transport efficiency and trade facilitation improve competitiveness of Kazakh businesses With Whom The Government Should Interact? Local Population: Local communitiesshould share benefits of development Road Users: Road users are entitled to direct benefits such as improved safety, comfort and convenience of travels

  13. Provision of Basic Services Local environment for commercial activities; Impacts of commercial development on local economy, environment Framework: Stakeholders and Partnerships Civil Societies: Facilitating communication and collaboration; Monitoring environmental/ social impacts of development Road Users (Individuals, Industries, Truckers): Ultimate Customers Transactions, Cultural/social interactions Transactions, Customer satisfaction Commercial Developers: Service Providers, Contractors Local Communities: Service Providers, Constituencies Conducive investment climate, Contracts Policies that support local economy Central, Regional and Municipal Governments: Planner, Policy-maker; Responsible for Design Specifications, Quality Standards, Monitoring, Enforcement

  14. Framework: Institutional Options • Central government led development: • Road user services PLAN is centrally prepared and implemented defining the role of the Government; • Central Gov’t may enter into contracts or concession agreements with operators • Local government led development: • Planning responsibility is handed to local governments • Some central government guidance and leadership may be necessary • Local Gov’t may enter into contracts or concession agreements with operators • Market-driven development (minimal involvement of gov’t): • Government requests for open (unsolicited) proposals • Turn-key type contract: site identification, construction, and operation

  15. Agenda • World Bank Transport Business Strategy in Europe and Central Asia: • Demand • 5 strategic products • Defining Road User Services • What are Road User Services? • Why are Road User Services Important? • Setting the Policy Framework • Policy Objectives and Constituencies • Roles and Responsibilities of Stakeholders • Institutional Options • One sample: World Bank Support to Kazakhstan • Development of a Road Sector Strategy • Pilot Implementation

  16. The World Bank-Financed OperationsWestern Europe Western China (CAREC corridor) (US$3.3 billion)

  17. WB Support Regarding Road Side Services Objectives: • Help the Government develop a strategy for provision of road user services on the road network, • Assist the Committee for Roads to implement a pilot project along the WE-WC Corridor Methodology: • Review of the legal and regulatory framework • Assessment of service needs (IRU?) • Assessment of operating environment (IRU?) • Stakeholder consultation (IRU) • Strategy and action plan (IRU?)

  18. Services Today “Services”

  19. Hopes …

  20. WB Support: Pilot Implementation • Pilot implementation (a) facilitation of trade and road transport; (b) improvement of road safety; (c) community development and poverty reduction in the local communities along the road network. • Expected outcome • improvement of convenience and comfort for road users; • WE-WC corridor branding for international recognition; • Compliance with international regulations on road transport.

  21. WB Support: Pilot Implementation • Pilot should fulfill basic service needs • Pilot should enforce international, regional, and national regulations on road transport and goods movement. • Pilot should contribute to local economy. • Pilot should be coordinated , avoiding fragmented development by segment or by jurisdictional area.

  22. WB Support: Pilot Implementation The impact of bypassing existing activities

  23. WB Support: Pilot Implementation Suggested roles, rights and responsibilities • Ministry of Transport, Committee for Roads: safety, technical specifications, design, concession agreements . • Ministry of Industry: investment climate, reduce barriers to business, policy measures. • Ministry of Health: emergency response . • Ministry of Internal Affairs: police dispatching. • Oblast and municipal governments: land-use , assessment of the needs. • Local communities NGOs, civil society: right to participate in decision-making, enjoy benefits as key player of the development; monitor commercial development, service quality and development impacts. • Private sector – SMEs: participate in the development while complying with obligations and standards. • Road users: their basic travel needs must be served; rights to purchase other services.

  24. Time line Kyzylorda South Kazakhstan Almaty 2012: Study and agreement on principle 2013-2015: Pilot operation in three Oblasts (1,400km):

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