Urban Infrastructure for Pro-Poor Growth in Emerging Asia The Challenge of Urban Transportation Presentation at ABCDE, Tokyo 29 May 2006 Dr. Norbert Kloppenburg, Senior Vice President Asia, KfW Development Bank

2 Urbanisation in Asia (and the World) Rapid migration to cities takes place Poverty challenge Environmental challenge Cities must prepare themselves – fast "Inefficient urban planning/ spatial decisions don’t go away!" Large investment needs Urban population (% total population) Chart and quotation taken from previous presentation (World Bank) 500 million more people move into Asian cities

3 Urbanisation as a Chance for Pro- Poor Growth and Development Higher average per-capita income Economies of scale / scope in infrastructure service provision  Opportunities

4 Urban Mobility as a Key Factor… … for the working of the urban economy Time wasted Division of labour Location factor in attracting FDIs … for the urban poor Share of income Mobility between living and working areas

5 Maintaining Urban Mobility Congestion in cities as a threat to competitiveness & investment environment & "liveability" Public transport as (part of) the solution

6 Individual Motorised vs. Public Transport Poverty and distri- butional aspects Environmental aspects Individual motorised transport affordable mainly to richer population usually does not pay for external costs (congestion, pollution, accidents) up to 10 times more energy consumption of cars vs. buses / trams / metro much higher pollution of motorcycles and cars vs. buses (esp. if CNG powered) and tram / metro systems Public transport systems (bus, tram, metro) affordable to broader population poverty targeting possible

7 Efficient public transport: Main Challenges Planning, implementation, management Financial resources / Funding

8 Role of (bilateral) development banks Providing advice on transport system design, implementation and operation Providing funding at favourable conditions to match long maturities of transport infrastructure investments KfW involvement: Planning and financial support for commuter and urban mass rapid transport systems in China, Colombia, Indonesia, Tunisia and Turkey

9 For Discussion: Challenges for the (Bilateral) Development Banks Transport-specific More general (urban infrastructure / development)

10 Thanks you!