PROJECTS

Maximizing Finance for Development in Transport

The problem

Public transit in cities across the world is undeveloped because governments don’t have the financial resources to invest in infrastructure. As cities across the world are increasingly congested because of an increase in urbanization and private use transport, mobility has decreased, and wealth and welfare are affected. Roads and infrastructure are deteriorating rapidly. Private investment could alleviate the problem, but governments and practitioners have struggled to develop viable PPP models.

How we helped

Castalia wrote the report “Maximizing Finance for Development in Transport: Getting from Concept to Investment” to help governments attract private investment to bus rapid transit, urban rail and existing free-access highways. It recommends models for private investment and improves approaches to structuring and funding projects. We also prepared Operational Guidance to teach World Bank Group employees how to use the Group’s existing financial instruments to structure and de-risk projects. Finally, we wrote a Pitch Book to give development banks the tools to pitch approaches and structures to governments and colleagues.

Impact

The World Bank will publish “Maximizing Finance for Development in Transport: Getting from Concept to Investment.” It will also publish the Operational Guidance, which has been used to advise Hanoi Metro and is helping Indonesia structure PPPs for free-access roads. The governments of Kenya and Uganda have benefited from coaching, and learning how to structure PPPs for free-access roads and public transit.