The French Development Agency (AFD) provides over 7 billion euros annually in development financing to over 60 countries. It focuses on promoting growth, reducing poverty and inequalities, and supporting global public goods. The AFD supports around 20 urban transport projects, including BRT, light rail and metro systems. The AFD approach to urban transportation focuses on three levels: developing integrated public transportation options, integrated management of all urban transportation, and coordinated planning of transportation and urban development. The AFD finances examples of projects in Amman, Jordan, Medellin, Colombia, and Curitiba, Brazil and has an office in Istanbul, Turkey that has provided over 1 billion euros in financing since 2004 to Turkish municipalities and private/bank

1. 8 April 2011
French Development Agency
Urban transportation
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2. 1.1 AFD in a nutshell
 French ODA agency , 7 Billion Euros (USD 10 billion) commitments in 2010 in
60+ countries
ti
 Provides sovereign, non sovereign loans, grants
 S b idi
Subsidiary d di t d to financing the P i t sector: PROPARCO
dedicated t fi i th Private t
 Untied financing
 Frequent co-financing with WB, EIB, ADB, IDB, etc
co financing WB EIB ADB IDB etc.
 Mandate centered on
 Growth
 Poverty alleviation and inequalities
 Global public goods
 About 20 AFD-supported urban transport projects currently in progress or
under consideration: BRT, cable, LRT, Metro…
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3. 1.2 AFD offices in the world
Damascus
2009
Bagdad
2010
Mexico City
2009
Bogota
2009
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4. 2.1 Rapidly increasing urbanisation
ASIA
Latin America Sub‐Sahara 2008: 1.6 Billion
Global Urban 75‐90% en 2020 2050: 1.2 Billion 2050: 3.5 Billion
Population
1970: 1 Billion
Urban Population
Urban Population
2020: 4.5 Billion
X 2 in 15 years
 A world‐wide Consequences
p
phenomenon: urban
+ ‐
development
 Great mismatch
between needs and
resources
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5. Global strategy contributing to
2.3
sustainable cities
Targeting LA’s financial sustainability
Strengthening
1 capacities of LAs
Improving urban management
Improving housing conditions
Improving urban living General access to basic public services
2 conditions and Promoting urban mobility
productiveness Economical activities and local employment
Preserving local environment
g
Promoting territorial
Using urban policies for climate change
3 development with adaptation
global public goods Preserving urban heritage
preservation Fighting urban diseases
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6. 3.1 The AFD approach for transport
 Integrated, at three main levels
 Level 1 – Structured and integrated development of public transport options
 Level 2 – Integrated management of all urban transport options
 Level 3 – Interdependent planning in transport and urban development
 Pragmatic, concerning implementation
 Diversified, in financing and partnerships
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7. 3.2
Level 1 – Structured and integrated
development of public transport
options
 Strong and visible improvement of supply of public transport options
 Without a priori technological preferences or assumptions with respect to
public transport options (ie available to the public: taxis, buses, BRT, trams,
light rail, metro, trains, boats, etc.) depending on local demand and links
 Without a priori institutional preferences or assumptions with respect to
status of operators (public, private, public-private)
 Integration of tariffs, ticketing, and functionality across the whole range of
public transport options
 Attentiveness to changing points/junctions and hubs within the transport
chain
 Multi-modal regulation by a public authority, with responsibility over a
pertinent area
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8. Level 2 – Integrated management of
3.3
all urban transport options
 Coordination across the whole urban area of all transport options, public and
private, for moving persons or goods, motorised or non-motorised, moving or
i t f i d t i d t i d i
stationary
 Selective and optimal management of car use and private transport options,
according t purpose, ti
di to time and zone, t f
d to favour certain uses <-> system of
t i <> t f
traffic flow and parking, selective application of toll, speed limits, etc.,
 Promotion of soft transport options (walking, cycling), clean motors, slow
traffic,
traffic and new technologies as well as special measures for children and
technologies,
disabled;
 Extending responsibility of public transport authorities to include all urban
transport options
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9. Level 3 – Interdependent planning in
3.4
transport and urban development
 Coherence of urban development and transport master plans, including
coordinated strategy for heavy public transport routes and urban densification.
di t d t t f h bli t t t d b d ifi ti
 S
Search f recurrent resources for development of urban public t
h for t f d l t f b bli transport:
t
assessmement of property/land values, selective tolls for road and parking
infrastructure, employer contributions, etc.
 Coordination of sector strategies at the relevant territorial (inter-community)
level within an integrated framework to manage urban energy and climate
footprint.
footprint
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10. 3.5 Financing
 Long term finance for long term use
 Analysis of the financial scheme
 A l i of th projected cash fl
Analysis f the j t d h flow
 Debt profile designed accorder to the project profitability (grace
period,…)
period )
 Repayment are fixed according to the cash generation capacity
 Debt supported directly by the municipality or through a
satellite body or through other mechanism…
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11. 3.6 Main questions PPP
 PPPs are not a source of funding; rather a mechanism to “raise funds” for a
project (and getting the lender/equity provider committed t project
j t ( d tti th l d / it id itt d to j t
implementation)
 Why opt for PPP:
 reduce recourse to public investment
 shared risks
 benefit from performance of private sector, procurement environment, financial
expertise (albeit not conditions)
 Prerequisites
 guarantees on commercial revenue necessary
 clarity of legal e
c a ty o ega environment
o e t
 fundamental economic viability
 strong public monitoring
 Question: who borrows the funds?
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12. 4. Some examples
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13. 4.1 Amman Rapid Transit, Jordan
 Project: 2 stages until 2025, 2
technologies:
t h l i
 LRT 40 km
 BRT 52 km
 Objectives: modify tendencies in
terms of mobility and support the city
planning policy
 Target: 590 000 travelers/day
 Project’s cost: US$ 2.6Bn
 AFD lended US$ 166m (sovereign) +
€2.2m grant
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14. 4.2 Medellin, Colombia
 Project: urban transformation with social and
environmental components i an i t
i t l t in integrated
t d
manner
 Objectives:
 Transport: 1 tramway line and 2 metrocable to
link the center of the city with center-East
neighborhoods
 In parallel, improvement of the center-East part of
the city with public areas organised for social
enhancing
 Partnership with the French city of Nantes
 Projec’s cost: € 400m
 AFD financed € 200m
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15. CENTRORIENTAL
Parque Bicentenario
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BEFORE 15

16. CENTRORIENTAL
Parque Bicentenario
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AFTER 16

17. CENTRORIENTAL
Paseo Ayacucho
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BEFORE 17

18. CENTRORIENTAL
Paseo Ayacucho
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AFTER 18

19. 4.3 Curitiba, Brazil
 Project: sustain the municipality’s policy
for transport and biodiversity
Curitiba
C itib
 Objectives:
 Reduce GHG due to transport
 Protect biodiversity by creating an ecological
fence
Paraná
 Content: Improvement of the linha verde
North part, 7th BRT axis of the city on an
former highway turned into and urban
g y
avenue
 Targets:
 25 000 tCO2 eq
 Protection and reintegration of native species
 Exchanges with the city of Lyon ZR 1 ZR 2 ZR ZR SETOR ESTRUTURAL ZR ZR ZR 2 ZR 1
3 4 4 3
 P j t’ cost: € 72 AFD fi
Project’s t 72m, financed € 36
d 36m
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20. 5. AFD in Turkey
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21. 5.1 AFD in Turkey
 The Istanbul office was opened in
Loans granted in Turkey
g y
2005 with 2 activities:
ith ti iti
 Private and banking sector since 2004
 Municipal sector
30%
 About €1bn of loans granted since
2004
 These financings were granted to 70%
SMEs through banks, to the private
sector and to municipalities (including
SKİs) Private and banking sector
Municipal sector
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22. 5.2 How we work with municipalities
We propose The way we work
 AFD finances municipalities’ projects and  Municipalities are the project owners
investment programs (LT maturities, in € and managers
or TL)
 Financial assessment of repayment
 Develop partnerships between Turkish capacity
and French municipalities and local
institutions  Availability of detailed feasibility of the
transportation project
 With or without Treasury guarantee
 Consistency with the transport master
 Attractive financial conditions in terms of plan
interest rates and maturities of the loans
 Approval of the Treasury and the SPO
 Possibility of co-funding with other donors
and commercial banks when needed  Untied aid
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23. 5.3 Report on transport financing
Handbook good practices for financing urban transport
(AFD-MEEDDM)
(AFD MEEDDM) 2009
Link:
http://www.afd.fr/jahia/webdav/site/afd/shared/ELEMENTS_COMMUNS/pdf/Hand
book-good-practices-for-financing-urban-transport-AFD-MEEDDM-2009.pdf
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24. Thank you for your attention
Contact:
David Willecomme
D id Will
willecommed@afd.fr
www.afd-turquie.org