Dario Hidalgo, EMBARQ’s Director of Research and Practice, presented a webinar on financing urban transport policies and programs. The webinar took place on December 10, 2013, and was part of a webinar series hosted by EMBARQ, the Clean Energy Solutions Center, and the Low Emission Development Global Partnership (LEDS GP) focused on planning and financing sustainable, low-carbon urban transportation.

1. Financing Urban Transport Policies and Programs
Darío Hidalgo, PhD
Director Research and Practice EMBARQ

2. We Insist in a Paradigm Shift
Moving Cars
Moving People

3. Global Report
on Human
Settlements
2013
http://www.unhabitat.
org/content.asp?type
id=19&catid=555&cid
=12336

4. We think we have it clear how
Avoid
Shift
Improve
Quantity and length
of motorized trips
To the most efficient
modes
Technology and
operations

5. But not enough change is happening

6. Why?
Dispersed
single land
use
Provision of
Road
Capacity
[Predicton of
Vehicular Flows]
Increased
urban area
Inncreased
Motorization

7. Wrong solution!
Eating
Expanding
the Size of
The Pants
Lack of
Exercise
Obesity
Lewis Mumford, October 19, 1895 – January 26, 1990

8. “Lock-in” effect
Government
Industry
People
http://www.flickr.com/photos/nayukim/5704132134/

9. Keys to “Unlock”
Re-allocating Finance
Building Capacity
Capturing the trends
http://thecityfix.com/blog/on-the-movepushing-sustainable-transport-concepttipping-point-dario-hidalgo-heshuangzeng/

10. Re-allocating finance
Source: Sakamoto et al. (2010)

11. Public finance in the transport sector
Source: Sakamoto et al. (2010)

12. National Governments are Central
International Organizations
Projects
Transport Policy
Transport Finance
National Governments
City and Local Projects

13. National Programs
Financing Sustainable Urban
Transport – International
Review of National Urban
Transport Policies and
Programmes
http://sustainabletransport.org/f
inancing-sustainable-urbantransport-international-reviewof-national-urban-transportpolicies-and-programmes/

14. National Programs
Evaluate, Enable, Engage:
Principles to Support
Effective Decision Making
in Mass Transit
Investment Programs
http://www.embarq.org/en/e
valuate-enable-engageprinciples-support-effectivedecision-making-masstransit-investment-programs

15. Some Examples: Brazil
National Urban Policy
Comprehensive Mobility
Plan (1,600 cities 20,000+)
Growth Acceleration
Program (PAC) USD 9.5
billion for BRT, LRT, Metro
Infrastructure – co-funding
from state and local levels
Additional loans for
vehicles and rolling stock
BNDES

16. Some examples: Colombia
National mass transit policy
Up to 70% support for
infrastructure
USD 2.5 billion for BRT in
seven cities
Integrated public transport in
intermediate cities
Technical assistance
Encourages private
participation
Metro in Bogotá (expected)

17. Some examples: México
Mass transit program (PROTRAM) USD 2.4 billion
50% of project capital cost for Rail and BRT
5 Cities in operation/final construction; 34 cities identified
Requires private participation

18. Some Examples: India
National Renewal Mission
JnNURM USD 20 billion
Requires comprehensive
mobility plan and co-funding
from the state and local
levels
Resulted in implementation
of Metro in 6 cities and BRT
in 7 cities
Encourgaes private
participation
Bhopal BRTS Mybus
http://sustainablecitiescollective.com/sites/sustainablecitiesco
llective.com/files/Picture3.jpg

19. Some examples: China
“Transit City” project 30 cities
Requires co-finance of
provincial governments
In 2012 Beijing Metro
reached 16-lines 442km 1,050km expected by 2020
Other 16 Chinese cities
expanding Metro; 18 cities
with Metro and LRT systems
under construction; 22 cities
with construction planned.
15 cities with BRT; 11 under
construction or planning

20. Continued Funding - National
International Fuel Prices Series
http://www.giz.de/expertise/html/4317.html

21. Continued Funding - Local
Land
Development
User and
Property
Taxes
• Property taxes
• Value capture
• Transit Oriented
Development
• Registration/licence
(property)
• Taxes to inputs (fuels)
• Parking managment
• Urban tolls

22. Land Development (along public transport)
http://www.tramz.com/co/bg/t/ts.html

23. Desarrollo InmobiliarioKong
Hong
HK$4 billion (US$506 million) in property sales on top of stations 32% of the
income of the Mass Transit Agency in 2010 (http://www.bloomberg.com/news/2011-03-03/mtr-sfull-year-underlying-profit-advanced-19-on-home-sales-fare-revenue.html)
Photo: Courtesy of Oren Tatcher

24. Singapore

25. Ørestad City, Copenhague
http://www10.aeccafe.com/blogs/arch-showcase/files/2011/12/Wing-House_1.jpg

26. Bogotá
Central Station
Urban Renewal
Project (under
construction)
Source:
Empresa de
Renovación
Urbana, Bogotá

27. Vehicle Registration Fees (Quotas)
Singapur
Shanghái
Guanzhou, China
Beijing (lotería)
http://www.bloomberg.com/news/2012-06-04/singapore-family-sedanmatches-cost-of-a-u-s-home.html

28. Vehicle Registration Fees (Quotas)
Singapore (1990)
Auction: USD 67,000 per vehicle
Quota 1% increase in fleet per year
~ 6,000 new cars, ~US 400+ million per year (for SUT)
Shanghai (1994)
Auction: USD 9,000 por auto
~ 96,000 new vehicles per year
~US 900+ million per year (for SUT)
Gunagzhou (2012)
120,000 new vehicles per year (12,000 clean vehciles
lottery, 60,000 rest lottery, 48,000 auciton)

29. Adminsitración de Estacionamiento
Parking Management
http://www.baycitizen.org/transportation/story/clog-streets-pay-premium/

30. Parking income in San Francisco
US $187 million per year (for SUT)
US $87,263,867 Parking violation fines
US $47,119,999 Parking-meters
US $43,354,632 Garages
US $9,747,900 Residential permits
29,058 spaces with parking meters
79,000 residential permits
263 enforcement officilas
Fuente: Autoridad Metropolitana de Transporte de San Francisco SFMTA, 2011

31. Congestion Pricing
London, Sweden, Valetta, Singapore
http://www.thetruthaboutcars.com/wp-content/uploads/2009/08/london-congestion-charging-zone-525x350.jpg

32. Climate/Environmental Funds for Transport
http://www.transport2020.org/p
ublicationitem/7/accessingclimate-finance-for-sustainabletransport-updated

33. The idea is to leverage funding
Govmt +
Private
ODA
NGOs
Millions
Climate
Hundreds
of Millions
Billions
Trillions

34. The challange 23% reduction in VKT in 2050
Road Travel (Billion Veh-Km)
50,000
42,971
45,000
40,000
33,194
35,000
30,000
25,000
20,000
15,000
10,000
5,000
22,8% reduction in
vehicle-km
USD 20 Trillion Savings
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
4 Degree Scenario
2 Degree Scenario
Source: IEA (2012) Energy Technology Perspectives

35. The impact: 1,3 million people not killed in traffic
Worldwide annual traffic fatalities
6,000,000
5,098,418
5,000,000
3,783,009
4,000,000
3,000,000
2,000,000
1.315.409 lives/year
saved due to the
reduction in VKT
1,000,000
0
2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
2 Degree Scenario
4 Degree Scenario
Source: EMBARQ Analysis, Duduta and Hidalgo (2013)

36. Thank You!
¡Muchas Gracias!
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