Working Paper No. 89 53499 S u b - S A h A r A n A F r i c A T r A n S P o r T P o l i c y P r o g r A m A Framework for a Pro-growth, Pro-poor Transport Strategy Tesfamichael Nahusenay Mitiku A Framework for a Pro-Growth, Pro-Poor Transport Strategy A Framework for a Pro-Growth, Pro-Poor Transport Strategy Guidance Note Tesfamichael Nahusenay Mitiku October 2009 Sub-Saharan Africa Transport Policy Program The SSATP is an international partnership to facilitate policy development and related capacity building in the transport sector in Sub-Saharan Africa. Sound policies lead to safe, reliable, and cost-effective transport, freeing people to lift themselves out of poverty and helping countries to compete internationally. * * * * * * * The SSATP is a partnership of 35 SSA countries 8 Regional Economic Communities 2 African institutions: UNECA, AU/NEPAD 10 active donors: European Commission (main donor), Denmark, France, Ireland, Norway, Sweden, United Kingdom, Islamic Development Bank, African Development Bank, and World Bank (host) Numerous public and private state and regional organizations * * * * * * * The SSATP gratefully acknowledges the financial contributions and support of the Euro- pean Commission; the governments of Denmark, France, Ireland, Norway, Sweden, and United Kingdom; and the Islamic Development Bank, the African Development Bank, and the World Bank. * * * * * * * More publications on the SSATP Website: www.worldbank.org/afr/ssatp The findings, interpretations, and conclusions expressed here are those of the author and do not necessarily reflect the views of the SSATP or its partners. © 2009 The International Bank for Reconstruction and Development / The World Bank All rights reserved. TABLE OF CONTENTS Foreword vii Acknowledgements ix Abbreviations xi Introduction 1 Background 3 Transport, growth and poverty reduction 3 The launching ground for transport sector strategies 4 Key issues to the transport sector 7 Lessons from transport sector programs 7 Rationale for a Pro-Growth, Pro-Poor Transport Strategy 9 Why a pro-growth, pro-poor transport strategy? 10 Principles and Methodology for Developing a PGPTS 13 Guiding principles 13 The overall process 13 Overview of the methodology for a PGPTS definition 16 Mapping strategic objectives and priorities 17 Setting the sector development framework 21 Stakeholder participation, coordination and execution 29 Stakeholder participation 29 Coordination and execution 31 Adoption of the Strategy 33 Application of the Process 33 Sustainability of the Strategy 34 References 35 Annex 1. Transport targets and indicators related to MDGs 37 Annex 2. Examples of policy options for consideration during strategic framework development A 39 Annex 2. Examples of policy options for consideration during strategic framework development B 41 Annex 3. Terms of reference for consultancy services 45 FOREWORD This Guidance Note builds on the knowledge generated by SSATP partners as they have worked to anchor Africa's transport in growth and poverty reduction initiatives. It provides a framework for the development of a pro-growth, pro-poor transport strategy (PGPTS), which is aimed at achieving national development objectives and the Millennium Development Goals (MDGs). The Note reviews current transport strategy development practices and experiences in Sub- Saharan Africa as well as emerging national, regional and global initiatives supporting the growth and poverty reduction efforts of African countries. It also takes into consideration the progress towards meeting the MDGs made by SSATP member countries and development partners. The reviews and assessments establish the rationale for a PGPTS and are used here to propose principles that could be adapted for developing such a strategy. The underlining principle stresses on the facilitation role of transport to growth and poverty reduction, and calls for the adoption of a responsive and evidence-based participatory ap- proach. The general emphasis is on supporting national development objectives and the MDGs through promoting policies and investments that can deliver safe, clean and affordable transport. Likewise, the proposed principles require that policy choices be based on existing evidence and body of knowledge, and most importantly, on stakeholders' views. The Note proposes a structured and participatory approach to the development of a transport strategy. This would make it possible to formulate strategic objectives and investment frame- works anchored in growth and poverty reduction. It also provides policy options that could increase coherence between sectoral spending and results. The concepts contained here have been reviewed by SSATP member country transport stake- holders. Going forward, it will be disseminated in SSATP member countries as a contribution to the efforts to promote the principles of a pro-growth, pro-poor transport strategy under the SSATP Second Development Plan (DP2). I hope that SSATP stakeholders find this Note useful in their endeavors to promote transport strategies that facilitate growth and poverty reduction. Stephen Vincent SSATP Program Manager vii ACKNOWLEDGEMENTS The author would like to thank the peer reviewers: Anca Cristina Dumitrescu, Charles Kuna- ka, Jephthah Chagunda, John Riverson and Yutaka Yoshino. Special thanks should go to Charles Kunaka for his advice and guidance from inception to completion, and likewise, to Monique Desthuis-Francis for her support in structuring the paper. The author would also like to acknowledge the valuable comments that were received from Jean-Francois Marteau, Yao Gbevope Adzigbey, the SSATP national coordinators and the SSATP team on the initial draft of this Note. ix ABBREVIATIONS AADT Annual average daily traffic AfDB African Development Bank AU African Union EC European Commission EU European Union GDP Gross domestic product IDA International Development Association IMT Intermediate Means of Transport km kilometer MDG Millennium Development Goal MGDS Malawi's Growth and Development Strategy NEPAD New Partnership for Africa's Development PGPTS Pro-growth, pro-poor transport strategy PRS Poverty Reduction Strategy PRTSR Poverty Reduction and Transport Strategies Review REC Regional Economic Community REC-TCC REC Transport Coordinating Committee RONET Road Network Evaluation Tools SF Stakeholder Forum SG Steering Group SGPRS Second Generation Poverty Reduction Strategies SP Sector Program SSA Sub-Saharan Africa SSATP Sub-Saharan Africa Transport Policy Program SWAp Sector Wide Approach SWOT Strength, Weakness, Opportunity and Threat U-PAEP Ugandan - Poverty Eradication Action Plan UN United Nations xi INTRODUCTION A pro-growth, pro-poor transport strategy (PGPTS) responsive to the second generation po- verty reduction strategies (SGPRSs) and the millennium development goals (MDGs) are es- sential instruments to promote transport development that facilitates economic growth and poverty reduction. However, the national poverty reduction and transport strategy reviews, undertaken by SSATP member countries, and the MDG review (UN Millennium Project- 2005), have shown that the existing transport strategies are deficient in many respects in sup- porting this objective. The strategies have not been successful in delivering adequate access to the rural and urban poor in Africa to reach economic opportunities, and to social and admin- istrative services. The purpose of this framework document (Guidance Note) is to highlight possible options for the development of a PGPTS. It identifies the questions that need to be asked and the choices that need to be made in framing such a strategy. It offers, at each stage, a checklist of issues for consideration and some examples of good practices. Its aim is to encourage policy-makers and planners to adopt a structured approach to assessing gaps, defining sectoral vision and goals, and mapping transport interventions and policy changes required to anchor transport in growth and poverty reduction. This Guidance Note is based on development scenarios and strategy formulation processes in Sub-Saharan Africa countries, and it is designed to facilitate the development of transport strategies that would support the achievement of the MDGs in these countries, and increase Africa's trade competitiveness and integration. The Note defines the principal elements of a pro-growth, pro-poor transport strategy. It also identifies interventions that allow transport to play a facilitation role in economic growth, poverty reduction and achieving the MDGs. Thus, it looks into developing a process leading to a sectoral framework that focuses on two fundamental points: improving efficiency and effectiveness with which internal and external resources are uti- lized by defining appropriate investment framework for the transport sector; and increasing coherence between sectoral policy, spending and results. To create a better understanding of the purpose and outcomes of this initiative, the Note looks into what a PGPTS is, why it is needed, what it contains, and how to develop it. 1 BACKGROUND Transport, growth and poverty reduction National development strategies and the MDGs have set priority economic and social objec- tives leading to growth and poverty reduction that are principally anchored in: i) increasing agricultural productivity, ii) investing in labor intensive infrastructure and industrial devel- opment, iii) developing social services focusing on reducing maternal mortality and improv- ing girls' education, iv) decentralizing administrative services and development, and v) safe- guarding the environment. In response, African countries are updating their transport strategies factoring in the evidence and body of knowledge on the facilitation role of transport in economic growth and poverty reduction, highlighted as follows. Studies conducted in Africa, Asia and Latin America show that improvement of rural roads reduces cost of marketing agricultural produce and encourages farmers to increase production of goods for market, particularly high value cash crops. Improvement in transport encourages the introduction of agricultural mechanization, and the use of chemical fertilizers and high yield varieties; it also increases access to institutional credit. Road Investments generate great increases in rural non-farm GDP (more than five-fold in the case of China). Further, opening up of rural access increases the opportunity to reach health services and schools, in particular for women in labor and girls' pursuing education. Cognizant of these potential impacts, African governments and development partners have adopted rural accessibility as one of the indicators for growth and poverty reduction. For ex- ample, the World Bank (IDA 14, Measuring Results, 2004) has adopted a rural accessibility index, "the proportion of rural people living within 2 kilometers of an all-season road", as a means of measuring transport's contribution to achieving the MDGs, mainly related to im- proved agricultural production and reduction in food insecurity; increase in girls' enrollment and pursuing education and reduction of maternal mortality. On the other hand, cities are widely acknowledged as an engine of economic growth, cultural diversification and technological progress. However, to thrive and be efficient, cities must be able to move people and transport goods. Transport development plays a vital role in enhanc- ing economic growth by lowering production and distribution costs, improving labor produc- tivity, stimulating private investments and technological innovations. Also, availability of fast, 3 reliable and affordable transport has historically been the building block around which cities and regions have developed and flourished. Transportation systems not only facilitate the movement of people and goods, but also have potentially wide-ranging impacts on land use, economic growth and quality of life. Transport network connecting major cities or the primate city with secondary cities and main rural market hubs facilitates urban rural linkages, by increasing exchange of products. In addi- tion, efficient transport link to sea ports facilitates export that encourages cities to produce more, and in return, the increases in production, sales and export inject dynamism to cities by generating investment capital and employment. Moreover, inter-city transport infrastructure is one of the most important factors in decentralizing development from the capital or major cities to the rest of the country. Increasingly, regional integration and globalization is becoming an important topic in the development arena. In relation to this, transport is playing a significant role in making coun- tries function as a region and compete in the international market. In this regard, the trade facilitation measures (modernizing customs, creating one-stop border posts, etc.), which have been adopted in some of Africa's transit corridors are delivering results in terms of reducing transport costs and delays. The launching ground for transport sector strategies Country and regional level initiatives The Second Generation Poverty Reduction Strategy (SGPRS) of many African countries 1 at- taches high importance to agricultural development, agro-industries, tourism, mining, social services and governance, which rely on the provision of safe, reliable and affordable transport. Cognizant of these, a SGPRS considers infrastructure development, mainly transport, as one of its priorities. However, by and large, the existing transport strategies are deficient in coping with these demands. Most SGPRSs have expressed their transport demands and have provided a framework for transport sector development. For example, Malawi's Growth and Development Strategy out- lines the goal, outcomes and broad framework for the transport sector and sets provision of safe, affordable and reliable access to the rural population and improving multi-modal trans- port services as a priority. The overall assessment of the SGPRSs calls for improvement of the transport network and increasing the efficiency of the existing transport system. Africa's share in the international (between Africa and other part of the world) and intra- regional (among African countries) market is limited to 2 and 10 percent, respectively, partly due to physical and non-physical barriers along transit corridors. To overcome this challenge, 1 This statement is based on the review of the SGPRS of Malawi, Mali, Ethiopia, Rwanda, Uganda and Zambia. 4 NEPAD/AU has prepared a Medium to Long Term Plan, which is focusing on increasing re- gional and international trade volume through completing the Trans-African Highways and adopting sound trade and transport facilitation measures along regional and inter-state corri- dors. This plan is the successor of the NEPAD short term action plan, which assembled projects in the pipeline, mainly inter-state road projects, with the objective of facilitating the integration of Africa and increasing its trade share in the world market. The SSATP through the Transport Coordina- tion Committee of the Regional Economic Box 1 Proposals from the MDG review Communities (REC-TCC) has been imple- Increasing rural access to facilitate the devel- menting activities fully coherent and relevant opment of the rural economy, both on and off- to NEPAD's regional integration and trade farm; and supporting " twenty ­first century competitiveness initiatives. This has been African green revolution"; done by promoting the establishment of mul- Overcoming Africa's high transport cost; ti-national transport corridor management Encouraging the private sector (mostly) to deliver transport services, including NMT, that groups, monitoring transport corridor per- are safe, reliable and socially responsible; formance through harmonization of transit Maintaining, renovating and upgrading road regulations and creation of one stop border networks and other infrastructure to expand posts. developing countries' capacity to deliver servic- es at scale; The Africa Infrastructure Country Diagnostic Major improvements in international rail, roads and communication to reduce transport (AICD) initiative, launched by the World cost and promote export (with special consid- Bank with the support of other development eration to landlocked developing countries); partners and the African Union, has delivered Strengthening governance and capacity to plan a baseline and foundation for prioritizing and manage transport infrastructure develop- ment and to regulate transport services. investments and designing policy reforms in the infrastructure sector. The transport part of the initiative has identified the gaps in the transport infrastructure development and hig- hlighted priority areas. The products of this initiative could be essential inputs for undertaking sector diagnostics and defining priority interventions during a PGPTS development process. The global development arena THE MDGS Many African countries are lagging behind in achieving the MDGs, and in most cases, a SGPRS is designed to improve progress towards meeting these goals. For that purpose, the MDG review (UN millennium project-2005), specific to Africa's transport, proposed to focus on the elements defined in Box 1. 5 Box 2 MDGs Related Transport Indicators and Targets (for 2015) Halving the proportion of the rural population living beyond 2 km of all season road Narrowing down the difference in average transport cost between Africa and Asia by 50% Closing the inter-African Highway gap Focusing on employment generation, Road Safety and transport services reducing maternal mortal- ity and improving access to girls' education In line with the MDG review, the African Transport and MDGs initiative has developed MDGs related transport targets and indicators. The main targets and indicators are shown in Box 2 while a complete matrix is presented in Annex 1. The MDG review and the G8 meeting on reducing global poverty are gradually influencing the support for developing countries, in particular Africa. In response to the initiatives by NEPAD and the Africa Infrastructure Consortium (AIC-established to promote infrastructure devel- opment in Africa), there is a renewed focus on Infrastructure by Africa's development partners (Box 3). Box 3 Renewed Focus on Infrastructure The EU-African Partnership on Infrastructure, launched in October 2007, is potentially the biggest initiative contributing to infrastructure development in the continent. This in turn will serve as an en- gine for economic growth, regional integration and poverty reduction. The partnership, Europe's re- sponse to NEPAD's initiative, places substantial emphasis on opening up and improving regional transport corridors, facilitating interconnectivity of Africa, reducing transport cost and improving the quality of services and safety. The World Bank's Africa Action Plan, in partnership with others, is supporting African countries to reach as many MDGs as possible by 2015. The action plan is focused on four selected pillars. Of the four, the most relevant to the transport sector are the focus on rural infrastructure, results measure- ment, capacity building and governance. The African Development Bank (AfDB) continues to be one of the major financiers of the transport sector and serves as the anchor for NEPAD. AfDB finances a wide range of transport projects both at regional and national level. It provides financing for physical works, technical assistance and capacity building. Bilateral donors are also attaching emphasis to infrastructure development in Africa. However, several bilateral donors have of late been shifting from the transport sector. Local resources are expected to increase: Road Funds continue to be the main sources for mainten- ance financing. Increase in Government allocations are also expected due to the renewed focus on In- frastructure. Community involvement in rural access development is expected to increase. 6 Key issues to the transport sector Support to the MDGs and AU/NEPAD initiatives The current transport strategies and programs are not generating sufficient financial resources for maintenance and improvement of the existing road network. The strategies are not com- prehensive, as they only partially address the problems of access and mobility of the poor. Most importantly, the strategies do not provide the framework for efficiently managing trans- port services. Problems related to physical and non-physical barriers, including cartels along transport corridors remain unattended. As a result, Africa's transport is characterized by: High freight transport costs, 3 to 5 times higher than in Asia and Latin America; Inadequate access, about 60 percent of the rural population in SSA lives beyond 2 km from an all-season road; Unaffordable urban transport services and unsafe pedestrian walkways; Lack of inter-state transport links and high transport cost (transport cost can account for as much as 56 percent of the value of exported goods) ; Critical shortage of financing for rural roads maintenance and development; Fragile sector management capacity and weak inter-agency coordination; and Pre-existing policy induced distortions and lack of efficiency. Lessons from transport sector programs The sector strategies and programs 2 developed by African counties are deficient in many re- spects. The poverty reduction and transport strategy (PRTS) review carried out in 18 countries since 2003 have helped to identify the gaps in the existing strategies. The reviews pointed out several deficiencies: Skewed interest towards one dominant sub-sector or a specific component; Focus on physical interventions with transport services often neglected; Transport demands of social sectors are neglected and strategies overlook cross- cutting issues; Policies are not developed through broad based sector policy dialogue, but are ra- ther attached to project loans and grants as conditionality; Various transport functional areas are not integrated; and Strategy or program formulation processes are not broad-based, and often lack in- puts from stakeholders. The formulation of a comprehensive pro-poor transport strategy addressing the gaps observed in the existing transport sector strategy and programs was one key recommendation from the 2 The sector strategies and programs exist in different forms: transport master plan, sector program (in some instances a sub-sector is considered as a sector), medium-term investment framework, transport sector policy (in some countries, the contents of such policy documents capture all elements of a sector strategy or program-policy, investment and monitoring framework). 7 PRTS reviews. Most importantly, the reviews recommended the new strategies to be coherent with the SGPRSs. Table 1. Status of sector program development and implementation as of June 2007 Implementing Formulating Identifying Move to SP Ethiopia Ghana Benin Burkina Faso, Burundi, Cameroon, Mozambique Malawi Madagascar DR Congo, CAR, Gabon, Gambia, Zambia Tanzania Lesotho, Mali Guinea Bissau, Kenya, Mauritania, Uganda Rwanda, Senegal Niger, Sierra Leone, Chad, Togo Policy dialogues between governments and donors were helpful in adopting sound transport strategies, such as establishing road funds. The dialogues are also leading towards programmatic approach addressing the challenges of the sector in a holistic manner. The dialogue takes place in different forms. The European Commission (EC) and other donors encourage governments to engage in a policy dialogue through SWAps (Sector wide approach). The World Bank engages in policy dialo- gue with governments at country and sector assistance strategy formulation levels leading to multi-year strategy and sector investment programs supported through projects, which are anchored in a periodically updated sector policy letter issued by governments. Bilateral and multilateral donors engage in policy dialogue during project or general and sector budget support discussions. In mid 2007, EC made an assessment of the status of sector program development and im- plementation and found that many African countries are moving towards sector program (SP) while some have already started implementation. See Table 1 for details. A review by EC, carried out in conjunction with the SP assessment, indicated the benefits and challenges of the approach, which included: Increased demand for cross-sectoral dialogue; Improved annual sector plans; Improved donor-government dialogue; Enhanced consultation with stakeholders; Strengthened sector performance monitoring; and Increased threats related to institutional and financial strength and sustainability, including high staff turnover and inability of most road funds to meet maintenance demands. 8 RATIONALE FOR A PRO-GROWTH, PRO-POOR TRANSPORT STRATEGY What is a pro-growth, pro-poor transport strategy or a PGPTS? It is a sectoral instrument di- recting resources to transport interventions supporting economic growth and poverty reduc- tion, as well as creating a vibrant transport sector. It is also an essential tool to improve effi- ciency and effectiveness of resource utilization through increasing coherence between sectoral policy, spending and results. Transport plays a critical role in ensuring that a "pro-growth" approach has "pro-poor" effects in the long run. This instrument focuses on transport policies and interventions stimulating growth and have explicit benefit to the cause of poverty reduction. The strategy gives emphasis to transport interventions facilitating the achievements of the goals that poverty reduction strategies (PRSs) consider to be the source of growth. A PGPTS provides a long term vision and Box 4 Essential Elements of a Pro-growth, strategic objectives for the sectoral develop- Pro-poor Transport Strategy ment. It outlines the requirements and scope of the strategic partnerships between trans- Vision and strategic objectives (goals) for the transport sector; port and other economic and social sectors Investment in transport to facilitate eco- so as to effectively achieve these goals; and by nomic growth and poverty reduction; this deliver a clear definition of transport's Policy and inter-sector partnership and in- mission within the national economy. stitutional changes and strategies required to achieve the investment targets and create A PGPTS contains a long term investment sound sector management capability; plan for the sector and defines policy Monitoring and evaluation framework to changes required to achieve sectoral objec- measure the impact of transport on eco- nomic growth and poverty reduction. tives. A PGPTS must be consistent with the national growth and poverty reduction strat- egies and must contribute to the achievement of the national economic objectives. It typically provides the elements contained in Box 4. A sectoral vision refers to what the transport sector shall be in the long term. It expresses in- tentions that are broad, inspiring and forward thinking. Likewise, strategic objectives state what the sector seeks to achieve in the short, medium and long term. These objectives represent results to be achieved by the sector. The process for setting out a transport investment framework refers to developing "a transport master plan" that identifies investment programs, legal, institutional and regulatory changes, as well as the activities necessary to promote integrated transport development, including a financing plan and the timetable for implementing the development programs. In this note, policy is defined as direction, approach and governing principle to overcome critical issues constraining the achievement of sectoral objectives. A transport sector policy has to be con- 9 sistent with the government economic policy and should contribute to the achievement of national economic objectives. A policy framework shall also contain strategies or implementation principles and mechanisms to achieve sectoral objectives. The strategies to be developed, in line with the policy, shall pro- vide general rules and principles for short, medium and long term actions aiming to focus efforts and resources to ensure that the present situation of the sector progressively approx- imates the vision. A monitoring framework contains a set of verifiable indicators and institutional arrangements for evaluating progress and measuring impacts of transport investments and policy changes. The indicators would facilitate cross-country comparisons and adoption of good practices. Why a pro-growth, pro-poor transport strategy? The principal reason for initiating a PGPTS is the urgent need to develop transport investment and policy frameworks responding to the current development environment. African coun- tries are currently implementing SGPRSs to stimulate economic growth contributing to po- verty reduction and achieving the MDGs. Transport strategies should therefore be adapted to the changes so as to fulfill the requirements of the SGPRSs and MDGs. Furthermore, the MDGs and PRTS 3 reviews have confirmed that the existing transport strate- gies are not adequate to deliver transport services that are required to profoundly change the livelihood of the rural and urban poor. The reviews call for the formulation of a pro-growth, pro-poor transport strategy that could improve the mobility of the poor, and deliver access to market and social services. Transport strategies can be designed to be more pro-growth and pro-poor. There is ample evidence on how transport facilitates growth and poverty reduction. There is also substantial body of knowledge on specific areas where transport makes a direct contribution to poverty reduction. Thus, the new generation strategies should be built on this body of knowledge and evidence. The piecemeal or fragmented approach, adding to the disconnect between national develop- ment strategies and transport strategies as well as between implementation of sector interven- tions by transport and non-transport sectors, is significantly contributing to the excessive transport cost and lack of access, which could be better addressed by developing a comprehen- sive transport sector strategy. Integrated transport strategies that are consistent with national economic objectives will help to attract more resources to the sector since transport investments have to compete with other 3 By the end of 2008, 18 African countries had undertaken a PRTS review to identify the gaps in the po- verty reduction and transport strategies and made the two strategies coherent. 10 key sectors for scarce resources. Moreover, integrated transport strategies demonstrate how transport contributes to growth and poverty reduction and ensure effective and efficient use of resources, all essential factors in influencing the budgetary process and increasing allocations to the transport sector. Transport strategies and programs aimed at supporting growth and poverty reduction have shown tangible results in improving the performance of the transport sector, and increasing productivity and investment. Tanzania's Road Sector Development Program has delivered improvement in the road network, which in-turn has helped to attract domestic and foreign direct investment. The rural roads improvement programs in Ghana, Guinea and Malawi, among others, have contributed to improved rural accessibility and increased agriculture productivity. The Ethiopian Road Sector Program implemented over the last 15 years has doubled the size of the classified road network, increased the proportion of roads in good and fair condition from less than 50 percent to over 70 percent; and helped construct about 70,000 km community access road. More importantly, the changes have contributed to the increase in agriculture productivity and farm gate prices. 11 PRINCIPLES AND METHODOLOGY FOR DEVELOPING A PGPTS Guiding principles There are three principal elements underpinning a PGPTS development process. First, the transport strategy has to be coherent with the SGPRS and the MDGs. Second, the process should be fully owned by stakeholders. Third, it should be enriched by analytical work and good practices. In general, responsiveness, evidence and participation buttress a PGPTS devel- opment process. During the development of a PGPTS, the following guiding principles could be considered: Transport investments and policies should be responsive to the priority economic and social sectors of the poverty reduction strategies (PRSs) and the MDGs. Transport strategies should be designed to improve efficiency and effectiveness with which internal and external resources are utilized through increased coherence be- tween national development strategies and investments, as well as results. The strategy shall promote integration of the various transport functions while pro- viding a framework for sharing responsibilities among the various transport stake- holders. Stakeholders (public, private and civil society, including transport and non-transport sector players) should play a central role in formulating investment and policy frameworks while policy makers should take into account the views of the stakehold- ers in final decisions to the extent possible. The process should recognize that transport strategies are dynamic, and thus empha- sizes on strategies that allow the sector to adapt to the changing development envi- ronment, and be updated from time to time. The overall process A strategy development process that adopts responsive and evidence-based participatory ap- proach involves: i) Establishing a process that allows direct and interactive participation of key stake- holders from public, private sector and civil society including transport and non- transport sector players. ii) Developing a pro-growth, pro-poor transport strategy through a series of struc- tured analytical work and consultations with key transport and non-transport 13 stakeholders, policy makers and development partners. The strategy development process is schematically presented in Figure 1 while the methodology is outlined in the following sections. iii) Adoption of the strategy by the government, and sensitization of decision-makers and donors to achieve buy-in to the outcomes of the process and to secure suffi- cient resources for implementation. 14 Mapping Strategic Objectives and Priorities A. Anchoring transport in national de- C. Setting sectoral vision and velopment objectives objectives Analysis of Sectoral vision National economic framework Transport demands of SGPRSs Strategic objectives (goals) MDGs related transport indicators for transport B Sector diagnostics Priorities for the Transport Status and challenges Sector Network assessment Sectoral Vision, Strategic Objectives and Priorities Setting the Sector Development Framework D. Intervention scoping F. Investment, policy and moni- toring framework development Quantitative and qualitative anal- ysis of physical and policy related Prioritization criteria interventions Investment and policy build- ing packages E. Policy analysis Policy changes and strategies Legal and regulatory changes; Monitoring indicators and ar- Defining financial and institution- rangements al arrangements Sector Investment Sector Policy Framework Monitoring Framework Program and Strategies A Framework for a National Pro-Growth, Pro-Poor Transport Strategy 15 Overview of the methodology for a PGPTS definition The methodology builds on the core values of responsive transport strategies, principally arti- culating transport interventions facilitating the achievement of national development objec- tives and the MDGs, as well as supporting good governance and the decentralization process taking place in many SSA countries. The methodology for the development of a PGPTS could include the following approaches: STAGE 1: MAPPING STRATEGIC OBJECTIVES AND PRIORITIES Anchoring transport in national development objectives: This task focuses on establish- ing the link between transport, and macro and sectoral level goals, by identifying transport interventions supporting national economic and social development objec- tives. At this stage, the PGPTS development is expected to define the outcomes or re- sults of the transport sector by determining the changes that need to take place. Undertaking sector diagnostics: Assessing the state of the transport sector and its chal- lenges is the basis for determining the changes needed. The diagnostics exercise also provides an opportunity to establish a knowledge base for the sector. STAGE 2: SETTING THE SECTOR DEVELOPMENT FRAMEWORK Scoping transport interventions: Determining the key interventions, both soft and hard, is the basis for setting the investment framework. This process builds on the sector strategic objectives and priorities identified in stage 1, and it reflects on the gaps and sustainability issues identified during the sector diagnostics process. Fur- thermore, to provide a sound plan of action, the PGPTS process, at this stage, should address questions related to institutional and financing requirements. Policy analysis: Deriving evidence through analysis of the existing situation and body of knowledge, as well as defining policy changes are important tasks to be undertaken at this stage. The policy analysis would also consider and define the regulatory, insti- tutional and financing reforms required to realize the priority interventions. CROSSCUTTING ACTION Stakeholder consultation: The inclusion of the stakeholders' views from key transport and non-transport sectors is critical for the development of sound investment pro- gram. The methodology considers that stakeholders will lead the process of defining the framework for transport development. Stakeholders' views shall be mainstreamed in the process at all stages in order to develop a strategy consistent to the interest of the public, in particular the poor. In order to have an effective stakeholders consulta- tion, it will be essential to create an inclusive forum and provide evidence derived 16 from analytical work and body of existing knowledge for the dialogue. The consulta- tion process will also be facilitated through questions and points of discussions that will help to structure the interaction, build consensus and determine actions to be implemented. WINDING-UP Consolidating the outcomes of the interactive process and analytical work: This step al- lows verifying the coherence between on one hand, the proposed transport interven- tions and on the other hand, the overall national development objectives and the ma- cro economic framework. To facilitate this exercise, this guidance note proposes the development of a results framework as shown in Table 2 (see page 28). The following sections present the details and application of the methodology at the different stages of the strategy development. Mapping strategic objectives and priorities A. Anchoring transport goals in national development objectives ASSESSING THE ECONOMIC FRAMEWORK AND TRANSPORT DEMANDS OF THE SGPRS The development of a PGPTS starts with the analysis of the SGPRS or its equivalent instru- ment, and the national macro economic framework. The analysis, at this stage, focuses on broadly defining transport demand and the requirements of the priority economic and social sectors of the PRSs, as well as assessing the implications of the macro economic situation on transport development. This exercise involves: Identifying key development objectives/ goals of the SGPRS and determining priority trans- port interventions required to achieve the national development goals. At this stage, it is es- sential to broadly assess what could feasibly be achieved within the macro-economic capacity of the country. This could be demonstrated in the following example. The Ugandan Poverty Eradication Action Plan (PAEP-2004) defines "expanding agricultural output through increased farm productivity and household income" as one of its priority development goals. In this case, the analysis could look into good practices on how transport facilitates improvements in farm productivity and house- hold income. In relation to this, several studies and research work have shown that provision of access and efficient transport services does facilitate improvements in farm productivity and household income, and thus, a better rural access and trans- port services delivery will form part of the priority transport areas. Along with this, an assessment could also be made of (i) parallel or complementary agricultural ac- tions that are needed for increased productivity and production in general; (ii) the 17 spatial requirements and the potential gaps in infrastructure and services that would shape the scope of intervention in both transport and agricultural sector; (iii) loca- tion and scope of social services development to best serve the needs of the poor, and the level of collaboration required to achieve the transport development goals. Given the enormity of the development benefits transport development could bring to the economy in Africa, the outcome of transport sector development may well influence the gen- eral economic development trend as well as policy in the long run. This situation is also consi- dered in the methodological design of a PGPTS while, in the first step of, anchoring transport in national development objectives. A transport sector strategy could be developed based on pre-existing socio-economic needs, i.e. "defining transport demands of the priority economic and social sectors of the poverty reduction strategies (PRSs)". While the need for consistency among policies is very much important from the point of view of development policy man- agement (and particularly so with PRSs), it is also essential that the strategy development process incorporates some sense of dynamic path in the long run where outcomes of transport sector development could influence the future orientation of growth and poverty reduction strategic objectives of a country. ACHIEVING THE MDGS At this stage, a review would need to be done to determine the contribution of the transport sector to achieving the MDGs. To this effect, the MDGs related transport targets and indica- tors developed by the African ministers responsible for transport could be used as a guide to identify the priority areas. The targets and the indicators are annexed to this note (Annex 1). On the other hand, the MDG review process has identified key transport interventions that could facilitate the achievement of the MDGs. The transport interventions proposed during the review are shown in the background section of this note (Box1). The review suggested that increasing rural access to support the "Twenty-First Century Afri- can Green Revolution" is a priority to reach the inclusive goal of eradicating extreme poverty and hunger. The suggestions related to transport cost reduction and improvement of the na- tional road network are also equally important to improving agricultural production and en- hancing domestic and international trade. One of the MDGs, "global partnership for development", requires the development of inter- state and regional transport. However, the environment sustainability goal has wider implica- tion for transport. It calls for delivering affordable transport for urban slum dwellers. It also requires making transport resilient to climate change and mitigating the negative impacts of transport on climate change. 18 AGGREGATING PRIORITY TRANSPORT DEMANDS The identification of transport priorities should cover the needs of all the priority economic and social sectors, including the provision of access to economic opportunities and basic social services by the rural and urban poor, a bottom line for a pro-growth, pro-poor transport strategy. The aggregation of the transport interventions required is the entry point to mapping priority areas for transport. Then, adding up the requirements to achieving the MDGs pro- vides the bigger picture of the transport priority areas. The steps that could be followed in this process are outlined in Box 5. Box 5 Steps for Mapping Priority Transport areas supporting PRSs & MDGs Identify priority economic and social development objectives of a PRS; Search for good practices and body of knowledge on how transport facilitates the achievement of the intended goal of the priority sector; Determine the transport interventions supporting the achievement of the goals based on good practices and body of knowledge; Assess key transport interventions underpinning economic growth and poverty reduc- tion, such as: facilitating trade through provision of access and transport services linking production centers to markets at all levels (local regional and world market); streng- thening inter-sectoral linkages,; etc; Identify transport interventions contributing to the meeting of the MDGs; Consultation with priority sector stakeholders (cross-sector consultation) and target groups (rural and urban poor) to create a common understanding of the transport in- terventions required to facilitate the achievements of the sectoral level development goals, and to support the poverty reduction process; and Aggregate the priority transport areas contributing to the achievement of national de- velopment objectives and the MDGs. B. Diagnosis of the transport sector One important step in this process is the diagnosis of the transport sector to mainly assess the existing situation, and identify challenges and contributions of the transport sector to eco- nomic growth and poverty reduction in the context of a particular country. The sector diagno- sis would include: Assessing the state of the transport sector: transport infrastructure stock and condi- tion (roads, rail, ports, etc.); status of transport service delivery, etc; Undertaking audit of the current institutional and financing arrangements; Evaluating the contribution of the transport sector to the growth and poverty re- duction process; Identifying major challenges key sectoral issues; Assessing the situation of cross cutting issues: road safety, governance, HIV/AIDS, gender, employment generation, and environment; 19 Assessing the soundness of the transport asset management practices (ownership, financing, and effectiveness of maintenance arrangements). Assessing whether connectivity to market (local, regional and world market), and social and administrative services is a bottleneck to development. The state of the transport network could be assessed by applying modern network manage- ment tools 4 or traditional network stock assessment methods. For example, the road network assessment could be carried out by using tools such as Road Network Evaluation Tools (RO- NET) 5 while categorization of the condition of other transport networks could be undertaken using the traditional visual road condition inspection approach. One of the main outcomes of the diagnostic exercise is the identification of challenges to the transport sector. Undertaking a SWOT (strength, weakness, opportunity and threat) analysis, preferably by engaging key stakeholders at sub-sector level, could be an option to creating a better understanding of sectoral issues. Evaluation of the asset management practices in terms of ownership and responsibility to manage the network, existence of stable flow of maintenance funding, and effectiveness of maintenance arrangements (planning, contracting, etc) is an essential exercise to be carried out at this stage. An overall assessment of the existence of a basic network in terms of linking production and consumption areas, linking local markets to larger markets or trade hubs, different level of service centers to each other, and providing access to domestic, regional and overseas markets is essential to determining the level of connectivity and its impact on the development process. Points that could be considered during the sector diagnostics process are indicated in Box 6. Box 6 Points for Discussion during Sector Diagnostics Transport sector diagnostics What characterizes the transport sector? How is the sector performing in terms of up keeping the transport network? Is access to market and services a bottleneck to the achievement of national development objec- tives? What are the major challenges of the transport sector? What are the strengths of the transport sector? What is the country specific evidence of the contributions of transport to the process of eco- nomic growth and poverty reduction? 4 For the evaluation of road networks, the choice of tools could be made by referring to an SSATP publi- cation "A User Guide to Road Management Tools," released in December 2008. 5 RONET is a tool that allows predicting future road conditions, transport costs, benefits to road users and to society, and road asset value, depending on the level of funding. 20 C. Vision, strategic objectives (goals) and transport priorities The outputs of the transport priority mapping Box 7 Questions for consideration during the exercise feeds into a consultation process that definition of vision, strategic objectives and involves key stakeholders. In this process, stake- transport priorities holders brainstorm to establish a vision/shared Is the transport sector successful in sup- vision for the transport sector ­ stakeholders' porting economic growth and poverty re- intentions as to what the transport sector should duction? be in a defined period of time, which could pos- What are the weaknesses and threats to the sector? sibly be over longer timeframe. What are the strengths of the sector? What will the transport sector be in the The stakeholders set the strategic objectives for long term (what do stakeholders expect the transport sector vis-à-vis the requirements of from it) the SGPRS and the MDGs, and identify the chal- What should the transport sector achieve in the short, medium and long term? lenges facing the transport sector. The strategic What are the focal areas for the transport objectives are core elements for linking transport sector in line with the SGPRS and the to a SGPRS and should indicate the goals to be MDGs? achieved in the short, medium and longer term. The stakeholders' proposal on the vision and the strategic objectives shall then be shared with high level policy makers. The consultation at this stage may include ministerial level represen- tation from institutions responsible for poverty reduction and national development pro- grams, finance, transport and the priority economic and social sectors. One important deliverable at this stage is to determine the priority transport areas required for achieving the strategic objectives. This involves aggregating and screening the transport areas identified during the exercise of anchoring transport in national development objectives, and the sector diagnostics. Questions that could be considered by the stakeholders during vision setting and identifica- tion of strategic objectives and transport priorities are contained in Box 7. Setting the sector development framework D. Intervention scoping DEFINING SPECIFIC TRANSPORT INTERVENTIONS The sector investment framework provides specific actions to be undertaken within the trans- port priority areas identified in stage 1. For example, if improvement of rural access is one of the priority areas, development of local (district) roads providing access to market towns, hubs serving cluster of settlements or villages, could be determined as a major investment. Then, prioritization could be done by using a simple matrix of selected objectives/indicators 21 (multi-criteria analysis), which may include population, traffic, change in accessibility, devel- opment potential and costs of improvement or construction. Likewise, measures to improve transport services delivery such as improving the regulatory framework, financing schemes, tax regime, incentives, and means of transport choices should be considered as key interven- tions. The analysis may consider the cost and benefits of developing the rural roads network to meet the Rural Roads Index the proportion of the rural population living beyond 2 km of an all- season road, and determine the level of accessibility commensurate with what could be achieved within the timeframe of the strategy. Analyzing the gaps in the national network, by using appropriate models 6, will be helpful in determining the interventions required to link production and consumption areas ­ enhanc- ing trade ­ and linking development poles 7 with each other. The analysis should extend to identifying interventions related to inter-state & regional links and access to ports, which re- quires undertaking a comparative analysis of all modes and determining the appropriate choice. It is also essential to define maintenance and rehabilitation requirements by undertak- ing a network sustainability analysis based on maintenance and rehabilitation cycles practiced in the country. Where sufficient data is available, investment needs to improve the existing road network could be determined using the model HDM-4. Inducing employment and income generation initiatives: An important task at this stage is the integration of innovative ideas that could make interventions more labor absorptive- em- ployment generation and creation, which is the direct contribution of transport to poverty reduction. For example, construction of rural roads and maintenance of roads could be labor intensive to the extent possible. Further, the strategy could create an enabling environment for micro and small scale entrepreneurs to engage in transport service delivery and maintenance contracts. Likewise, maintenance and small scale construction works could be carried out through community contracts and length person systems, which are effective income generat- ing schemes for the rural and urban poor. The interventions shall also articulate stand-alone projects to address cross-cutting issues re- lated to road safety, governance, HIV/AIDS, gender or environment and where necessary, in- corporate them in transport projects in visible ways. Prioritization criteria would be drawn by the technical team, endorsed by the key stakeholders, and sequencing of interventions be based on them. The criteria should determine allocation of resources to the most cost effective areas. Prioritization and sequencing of interventions for short, medium and long term should be based on the principle of responsiveness to the de- mands of the growth and poverty reduction strategy. For instance, if increasing agricultural productivity and enhancing trade are priorities, the transport strategy should focus on policies 6 The technical team may adopt models such as: four (five if time is a factor) stage model (trip genera- tion, trip distribution, traffic assignment, and evaluation of efficiency and economic viability of alterna- tive schemes); general network editor, and GIS and other spatial analysis techniques. 7 Commercial, high level services and manufacturing centers 22 and interventions improving rural access and inter-city connections, as well as import-export corridors. AGGREGATING SPECIFIC TRANSPORT INTERVENTIONS The identification of specific interventions has to cover all the priority transport areas and then the core activities have to be aggregated into physical and non-physical interventions. The aggregated product may serve as a "master plan" for the sector. It shall also define inter- ventions to be undertaken at sub-sectoral level so that responsibilities could be allocated to the respective institutions. The aggregation process looks into integrating various transport functional areas: road infra- structure, road transport services and safety, inland water, rail and air transport, and ports. This process should also consider the comparative advantages of multi-modality and modal competitiveness for increasing the overall efficiency of the transport system. All non-physical interventions, such as capacity building related actions, legal, institutional and regulatory framework formulation, etc, have to be captured in a project form and have to be encapsulated in the policy building packages. The main task at this stage is to undertake detailed quantitative and qualitative analysis to de- termine the scope of the specific interventions responding to the transport priority areas as indicated in Box 8. Box 8 Steps for Scoping Specific Transport Interventions Identifying transport infrastructure interventions related to the priority transport areas, and defining measures to improve transport services delivery; Identifying the gaps in the national network and determining missing links required to im- prove inter-state and regional trade; Determining maintenance and rehabilitation requirements Inducing employment and income generation initiatives and articulating interventions related to road safety, governance, HIV/AIDS, gender and environment; Defining the interventions required to meet the MDGs related transport indicators; Determining the institutional arrangements and financing requirements for the implementa- tion of the interventions. Who are the key actors and what are their roles? What will it cost? How will they be paid for (potential sources of revenue and finance, national regional and local resources given in terms of money or in-kind contributions)? Aggregating specific demands and integrating individual and sub-sector level interventions Developing prioritization criteria and ranking interventions. 23 E. Policy analysis Assessing existing policies, identifying the gaps and developing a comprehensive policy pack- age supporting the achievement of the strategic objectives will be an important product of the policy analysis process. The policy packages have to be supported by establishing sound strategies to achieve the in- tended interventions and implement the policy changes. The strategies should not end with stating broad mechanisms; instead they should clearly define what should be done, how it should be implemented to achieve the planned objectives, and how it will be paid for. To facilitate policy definition, examples of policy options adopted in different circumstances are presented in Annex 2. The technical team and stakeholders could look into some of the options that may fit the situation in the specific country and elaborate them further. The policy analysis involves: Reviewing the regulatory framework, tax regime and pricing principles, and delivering policy options can be daunting, but the most essential part of this exercise. This process shall provide policy options addressing questions such as: what should be done to improve entry to the transport service market? What should be done to eliminate cartels? What should be done to remove the physical and non-physical barriers along Africa's transport corridors? Constraints to transport development are not always caused due to lack of infrastructure or externalities, thus, the analysis should also outline solutions to pre-existing policy induced market distor- tions and inefficiencies. Defining institutional development polices and strategies: In this process, the overall sector management arrangement has to be scrutinized in terms of providing sound leadership, avoiding duplication of responsibilities and creating a harmonized and integrated institutional framework for transport development. This should also extend into analyzing: i) the existence and strength of the institutions required for effective implementation of the interventions (in- frastructure development and transport services provision regulatory agencies, network man- agement bodies, safety management units, etc); ii) the existence and use of systems and opera- tional procedures; iii) adequacy of manpower and strategy for human resources development, iv) the need for decentralized management and implementation of infrastructure and services and associated establishment or strengthening of local level institutions, and v) constraints of weak inter-agency coordination prohibiting setting up and implementing multi-sectoral and sector wide policy frameworks. Determining the role of the private sector: In the context of Africa, the engagement of the private sector is limited to provision of transport services, construction and business services, including largely marketing and trading. However, there is a need to explore options for a wider public-private partnership and to create conducive legal/regulatory environment to en- hance private sector participation. 24 Developing financial policies and strategies: Developing policies related to funding transport infrastructure development and maintenance (fuel levy, direct pricing, etc), national and local resource mobilization and allocation, safety management, support to public transport services (e.g. taxation on IMTs, credit for public transport vehicles, etc.) is an important task to be carried out at this stage. Further, the policy analysis shall look into issues such as: i) the possi- bility of generating more revenue from existing dedicated funding mechanisms, such as road funds, ii) identifying potential sources of financing, including possibility of strengthening community participation, iii) transparency and effectiveness in the use of funds- ensuring the existence of robust financial and technical auditing arrangements, and iv) effectiveness of do- nor coordination mechanisms. Box 9 Questions for developing policies and strategies What are the institutional changes required for effective implementation of the strategy? What should be done to improve implementation capacity? What should be done to improve and strengthen private sector participation? What are the regulatory, pricing, etc., measures required to enhance competition and improve trans- port infrastructure management and transport services delivery? What are the potential sources and mechanisms for financing, including resource mobilization and al- location criteria that reach and serve the needs of local governments, cities and communities? What mechanisms should be in place to improve donor coordination? What are the policies and strategies required to ensure sustainability? Policy dialogue: Creating a policy dialogue forum that engages stakeholders (public, private and civil society) is the cornerstone for instilling good governance in the sector. The road agency and road fund boards are good living examples in bringing together the private and public sector, and winning the confidence of the public and development partners. Building on this good practice and intensifying the engagement of stakeholders in policy dialogue is an important strategy. Thus, this process has to show how to tap into this resource and devise a strategy to integrate their participation in all aspects and levels of transport development. Points that need attention during policy and strategy formulation are presented in Box 9. F. Defining the investment, policy and monitoring frameworks The investment and policy frameworks will be drawn through intensive analytical process as outlined in the previous sections. However, the critical investment and policy concepts have to be determined by stakeholders being informed of good practices from other countries and the body of knowledge. The stakeholders shall review the investment framework, the policy changes and the monitor- ing arrangements, and forward their recommendations for government's endorsement. 25 During the stakeholders' workshop, the participants could consider the points contained in Box 10. Box 10 Points for Consideration by Stakeholders to Define Investment, Policy and Monitoring Frameworks Agreeing on prioritization criteria; Reviewing the priority interventions proposed by a technical team and ensuring their responsive- ness to the SGPRS and the MDGs; Agreeing on the share of the key interventions, e.g., rural access, transport services, maintenance, institutional development and capacity building, etc. Determining the policy changes required to facilitate the implementation of the transport invest- ment; and Defining the indicators and monitoring arrangements. THE MONITORING FRAMEWORK To evaluate the effectiveness and efficiency of the proposed investments, there is a need to establish a sound monitoring framework, by defining verifiable impact, outcome and output indictors and putting in place appropriate monitoring arrangements. The presence of a sound data management system and a responsible unit are the cornerstones for having an effective monitoring and evaluation framework. In regards to this, the strategy development process has to look into the national level data management arrangements and come up with a proposal that will ensure the presence of sound data management system at sectoral level and indicate the means for interconnecting it with the national data grid. To share the experience of SSATP member countries, some generic indicators developed through the SSATP indicator initiative are presented in Box 11. CONSOLIDATING OUTCOMES OF THE STRATEGY DEVELOPMENT PROCESS At this stage, the process will have delivered key interventions, policy measures and imple- mentation mechanisms, and thus it will be essential to establish logical linkages between ac- tions and results/outcomes defined during strategic objectives setting. Most importantly, this step shall ensure that the strategy delivers the anticipated results/ outcomes. To demonstrate this process, a "partial" results framework based on one of the common development objec- tives of many African countries' poverty reduction strategy papers is presented in Table 2. 26 Box 11 Examples of key indicators Network management, standard & utilization Transport services Total road network size (km) Vehicle population Paved road network in good and fair condition Freight transport rate ( ton-km) Unpaved road network in good & fair condition Average Passenger fare person-km(rural, in- % of paved road with less than 300 AADT tercity, urban separately) % of unpaved road with over 300 AADT % of household income consumed by trans- Percentage of paved network with less than port (rural & urban) 30AADT Inter-state and import export corridors Average network AADT (vehicle/day) Port dwell time Rural access Freight rate ( ton-km) Percentage of rural population living within 2 km Railway length (km) of an all-season road Rail transport volume (ton-km) Urban transport Institution, financing and development Average travel time to formal and informal work Existence of road agency, road fund and trans- places port regulatory institution Number of buses per 1000 inhabitants Percentage of road maintenance requirement Length of paved/dressed walkway covered by road fund Road Safety Employment in transport sector ( infrastruc- Fatality rate ture & services) Road crash-incidences Share of transport in total public expenditure & GDP % of transport cost of internally traded goods, imports and exports This process shall deliver a comprehensive pro-growth, pro-poor transport strategy for trans- port sector investments and policy reforms. The strategy shall contain concrete physical and policy related projects with defined deliverables (overall transport sector goal to support na- tional development objective: e.g. facilitating economic growth and poverty reduction through provision of safe, clean and affordable transport). The main features of the outputs are pre- sented in Box 12. Table 2. Results Framework Outcome Outputs Inputs Risks & Assumptions Outcome statement Deliverables Case specific Risks Improved rural access Newly constructed access Country specific roads Improved trails and tracks Improved services Indicators Indicators Assumptions % of rural population Length of road newly Country specific living within 2 km of constructed all season road Length of improved trails Reduction in passenger and tracks & freight rate Vehicle & IMT Popula- tion Targets (country specific) Baseline value (country specific) 27 STAKEHOLDER PARTICIPATION, COORDINATION AND EXECUTION Stakeholder participation There are several reasons for considering a participatory approach as important in the devel- opment of transport sector strategy. Without participation of all concerned actors, it will not be possible to explore all available options, take account of synergies and advantageous inter- linkages and decide on hard policy choices. The prime element of any transport system is its direct users and external beneficiaries (from the non-transport, economic and social sectors). Ensuring the users' participation in the strategy development process is important to under- stand their needs, attitudes, aspirations, desires, priority, possible contributions, how they could be affected by proposed changes, patterns, etc. In a participatory approach, a large amount of qualitative data in plain text format as well as numeric or quantitative data can be generated to tell about people's views, desires, priorities, and also provide much deeper in- sights into the complexities involved. In the traditional planning approach, planners carry out almost all activities starting from problem identification to plan formulation by themselves with limited input from the benefi- ciaries and other stakeholders. A flaw in this type of approach is that qualitative and quantita- tive analysis of issues and data, in itself, may not be sufficient to identify problems or desired actions required to address them, because it is based on the planners' own value judgments in interpreting the results of identified problems, which may not necessarily be the ones per- ceived by the real beneficiaries. Furthermore, even if a problem is rightly identified and suita- ble solutions are recommended, the beneficiaries may not develop the level of ownership re- quired to properly implement them; complementary actions will also inevitably be required to ensure a holistic solution to the provision of transport. There is no "one size fits all" approach to stakeholder participation in a national transport strategy development process, but the fundamental principle to be observed is the design of a mechanism that allows a direct and interactive participation of key stakeholders from the pub- lic and private sector, as well as the civil society. Their involvement, either directly or indirectly, can occur at several stages of the process. It may begin with an initial stage when their views are sought concerning identification of the problems and their root causes, their vision of the future, including priority transport inter- ventions to best impact their sectors, and ways that they could directly contribute to realizing the vision. At subsequent stages, the stakeholders should be involved in reviewing the findings of the analysis and in considering the draft plans and the policy developed. This participation can be achieved at three levels. First, engaging key stakeholders in a core group, "steering group/committee" that provides strategic guidance and regularly instill public views into the process. Second, involving all interest groups (broader representation) in a 29 Stakeholder Forum that deliberates on strategic issues as well as investment and policy pro- posals, to be presented for government approval. Third, consultation with focus groups, policy makers and development partners, which could take place at sector diagnostics stage and vali- dation of the proposed investment and policy frameworks. Brief accounts of the proposed arrangements are described below. Steering group (SG) The strategy development process involves extensive consultation and analytical work that require inputs from stakeholders and regularly overseeing the progress and outputs of the technical team/consultants. The SG, thus plays a critical role in mobilizing and maintaining the involvement of the stakeholders in the strategy development process, and providing stra- tegic guidance to the analytical work through approving plans for studies and reviewing re- ports generated at all stages. The SG should therefore represent key transport sector and re- lated stakeholders. The SG is suggested to be established by the ministry responsible for transport policy devel- opment. The key factor in determining the constituencies to be represented at the SG level is the need to balance the views of key interest groups from the public and private sector, and the civil society. Knowledge of economic growth, poverty reduction and transport issues is also essential. The SG members should also be influential, preferably holding a Director or above level post in the institutions responsible for transport policy development and implementation as well as key economic and social sector ministries. The representatives from the private sec- tor and civil society should be those who can strongly stand for the interests of users and dis- advantaged groups. Stakeholder forum (SF) At critical milestones, stakeholder forums representing all interest groups shall deliberate on strategic issues and formulate core proposals for government approval. The forums shall re- view suggestions by the technical team and formulate the vision and strategic objectives for the transport sector. The forum could be organized at three stages. First, to set strategic objectives and priorities for the transport sector based on the demand analysis and sector diagnostic findings. Second, to draw investment, policy and monitoring frameworks for the sector, fol- lowing the investment scoping and policy analysis exercises. Third, to validate the draft sector development framework to be approved by government. The strategy development process should engage all stakeholders interested in the develop- ment of the transport sector, and who could propose policy orientations, and take part in the dialogue. However, to conduct effective and productive dialogue, the forums shall involve limited number of stakeholders from civil society, the private and public sectors, and devel- opment partners, with a good gender mix. The steering group with the support of a facilitator, or the technical team, shall undertake stakeholder analysis to identify those who would be participating in the forums. The areas of knowledge covered by this group may include: na- 30 tional planning; the issues of the economic and social sectors; issues of inter-state/regional trade, decentralization, the needs and interests of population groups targeted by the poverty reduction strategy, such as women, elders, etc.; transport sector (infrastructure and services, all modes); the key cross-cutting issues (good governance, employment creation, gender , HIV/AIDS, environmental protection...) and issues of the global development arena . Consultation with focus groups, policy makers and development partners CONSULTATION WITH TARGET POPULATION, LOCAL GOVERNMENTS AND STAKEHOLDERS Consultation with target population (rural and urban poor, women, etc.) and local govern- ment is essential to better understand their priorities and define their roles in the program implementation. This task could be undertaken by the technical team, in collaboration with the steering group. The involvement of sub-sector stakeholders could be integrated with the sector diagnostic work. To facilitate this, the SG could establish sub-sector level stakeholder groups to under- take SWOT analysis in order to attain a balanced and realistic perception about the sector. CONSULTATION WITH POLICY MAKERS AND DEVELOPMENT PARTNERS Further, the steering group has to hold consultations with policy makers, mainly, to develop a shared vision and strategic objectives, and set investment and policy frameworks. Policy mak- ers shall consider the proposals by stakeholders as an important input for their final decision making and use them to the maximum extent. Donors, as development partners, have to be consulted at critical milestones. They could share the vision and strategic objectives of the sector as well as the final decision of the stakeholders. Donors may bring international experience into the process. Their engagement at an early stage will help them to consider how they will harmonize their procedures and explore all funding mechanisms. Coordination arrangements, if in place, may help to create the forum for the consultation and providing feedback to the process. Coordination and execution In general, this approach involves establishing and making operational the following coordi- nation and execution bodies: Designating a coordination unit/department within the lead transport policy devel- opment institution; Establishing steering group and stakeholder forums; and 31 Engaging the technical team and service providers (consulting firm, stakeholder workshop facilitator and workshop services provider). Overall coordination The steering group is to be responsible for the overall coordination of the process. However, to ensure effectiveness and the institutionalization of the process, the lead transport policy development institution shall designate a Unit or a Department to house the strategy devel- opment task. The Unit will be responsible for the day to day coordination of the process, fol- lowing-up contacts and the adoption of the outcomes, spearheading implementation and monitoring activities. It will also be responsible for procurement and provision of operational support to the process. Technical team/consultancy team This approach underlines the importance of adopting evidence-based participatory process as a better option to develop sound transport policies and strategies. In this regard, a technical team/consultancy team is suggested to undertake analytical work to develop options address- ing critical issues and provide input to the steering group and the stakeholder forums. It is important to understand that the role of the technical team/ consultant in a participatory approach is that of a facilitator and needs the cooperation of the stakeholders in order to de- velop a consensus on investment and policy frameworks. To accomplish this outcome, the team will need to work closely with the SG, which is seen as the key link to stakeholders. The team could identify good practices and propose policy options, but ownership of the policy needs to be built and eventually agreed to by the stakeholders and not by the technical team. The team should be multi-disciplinary. The professionals ­ technical team members ­ could be provided by a consulting firm. However, the option of establishing an in-house taskforce could be considered, as long as the professionals are available fulltime and the necessary incen- tive mechanism is in place. Main tasks of the technical team/consultant include: Conducting baseline studies Consultation with key stakeholders and target population; Preparing background documents for stakeholder workshops, including notes on findings of the analytical work; issues and options paper encapsulating suggestions on vision, strategic objectives and transports priorities; Based on the input from the stakeholder forum, preparing draft sector develop- ment framework with a preliminary road map for its implementation; Annex 3 provides a detail TOR for the consultancy services. 32 ADOPTION OF THE STRATEGY Approval of the final strategy document (policy and investment framework) will be the re- sponsibility of the National Government Ministry of Transport (or the lead institution for transport policy development), which will prepare a Cabinet memorandum to the Council of Ministers and Parliament for adoption as the Transport Sector Policy and Strategy of the country, if the law of the land requires so. The strategy will serve as an instrument to lead transport sector activities, and thus, it is essen- tial that the resources for implementation are incorporated in the budgetary process, and im- plementing institutions know their roles and responsibilities. Adoption of the framework by the government is an indication of the buy-in to the principles and objectives of the framework. It also marks the launching of the strategy. At this stage, it is essential to set some indicators of the buy-in to the strategies, which could include: Increase in resources for transport; Adoption of legislations and policies anticipated in the framework; and Start-up of implementation of quick win projects APPLICATION OF THE PROCESS Depending on the stage of transport strategy development, countries may engage in the process at three levels: i) Developing a new comprehensive transport sector policy, strategy and program, in countries where strategies were formerly developed in a piecemeal manner. ii) Updating an existing transport strategy or sector program iii) Peer reviewing a recently completed transport strategy/sector program or a strategy whose development process is at a final stage. Stakeholders may review the latter to identify gaps and forward proposals to enhance quality and improve contents. Dur- ing the review process, stakeholders may consider the questions and points of dis- cussions contained in this guidance note. This process will be critical to countries where the poverty reduction strategy (PRS) or its equivalent instrument had conceived transport as a priority sector or the priority economic and social sectors of the PRS have expressed demand for transport. This approach/process would also be beneficial in countries that are engaged in a policy dialogue, considering sector wide approaches (SWAps) or intending to develop a comprehensive transport sector strategy or program responsive to economic growth, poverty reduction and the MDGs. 33 In countries where transport policy development responsibilities are decentralized, the process needs to be customized to fit into the legal and administrative framework. The overall goal and objectives could be defined at central level and further elaborated by the stakeholders at regional and local level. Further, detailed plans could be prepared at regional and local level and then aggregated centrally. Alternatively, it is possible to initiate policies at grass root level and feed into regional and central policy development processes. SUSTAINABILITY OF THE STRATEGY Sustainability of a PGPTS depends on, inter-alia: delivering and reporting results; adapting to the changing environment; and mainstreaming transport strategies in the national develop- ment planning and budgetary process. Regularly collecting data and reporting on indicators showing the results delivered by the strategy, in terms of supporting growth and poverty reduction is essential to win the confi- dence of key stakeholders and the public. Stakeholders should be updated on what is delivered and be encouraged to participate in the implementation process. As well, policy makers and development partners should be engaged in the implementation from the beginning and be updated regularly. Outstanding policy issues should also be resolved in a timely manner. However, strategies, which are dynamic by nature, have to be updated from time to time. The guiding principle of a PGPTS is responsiveness, and thus, the strategy should be updated regu- larly to cope with the changing environment. A PGPTS has to predict what is to be done in the long term, about 10 to 20 years depending on the situation of the individual country; as well strategies should also provide a framework for the medium term, 3 to 5 years. The strategy updating process has to be synchronized with the cycle of the growth and poverty reduction strategy review process. This will help to ensure coherence and relevance of the transport strategy. Transport strategies should be mainstreamed in the national development plan or the poverty reduction strategy (PRS) or its equivalent instrument. The lead transport implementation institution should be engaged in the annual budgetary process as well as public expenditure reviews, and ensure decision makers recognize the contribution of transport to growth and poverty reduction. The lead institution should also engage in donor-government dialogue and preparation of country support strategies. 34 REFERENCES Archondo-Callao, R. 2007. "Road Network Evaluation Tool (RONET) ­ User's Guide" SSATP Working Paper No 85-A. Braithwaite, M. 2003. "Review of National transport and Poverty reduction strategies ­ Guide- lines. SSATP, Washington DC. European Commission. 2003. "Guidelines for European Commission Support to Sector Pro- grammes". Fan S. 1999. Infrastructure and Pro-poor Growth, IFPRI. Lee, J. and Hine, J.L. 2008. "Preparing a National Transport Strategy, Suggestions for Gov- ernment Agencies in Developing Countries". World Bank, Washington DC. Malawi Growth and Development Strategy (MGDS-2006). Mali's Transport Sector Policy. 2007(in French). Millennium Development Goals (MDGs) Review, UN Millennium Project-2005. Poverty Reduction and Transport Strategies Review Country Reports (2005-2008); available on SSATP website: www.worldbank.org/africa/ssatp Schutte, I. 2008. "A User Guide to Road Management Tools". SSATP, Washington DC. Transport and the Millennium Development Goals in Africa, SSATP in Collaboration with Africa Union, UNECA, African Development Bank, the World bank and European Union, February, 2005. Uganda's Transport Master Plan, 2006. Ugandan Poverty Eradication Action Plan (PAEP-2004). World Bank ­DfID ­ USAID. 2007. Nigeria, Policy Note on the Transport Sector. 35 ANNEX 1. TRANSPORT TARGETS AND INDICATORS RELATED TO MDGS MDG Targets Indicators MDG 1 1. Access to inputs and markets, generation of employment opportunities 1. Proportion of rural population within 2 km of an all season mode of transportation Eradication of extreme improved by halving the proportion of rural population living beyond 2 2. % increase in road and rail density poverty and hunger km of an all-season mode of transport. 3. % Reduction of travel and vehicle turnaround time 4. % Increased productivity in agriculture and economic activities 5. % Increase in employment opportunities and income generation from transport related activities 2. The difference in average transport cost between Africa and Asia nar- 6. % Reduction in passenger fares (passenger kilometer) rowed down by 50% 7. % Reduction in unit goods transport cost (ton kilometer) 8. Level of affordability of transport cost as % of income by the urban and rural poor 9. % Increase in the use of intermediate means of transport (IMT) 10. Existence of sustainable financing mechanisms such as Road Funds... 11. % Increase in the proportion of modes of transportation in good and fair condition MDG 2 + 3 3. Rural access and urban mobility improved and cost reduced to eliminate 12. % of schools which have reliable access Universal primary educa- constraints on the time which all children have to spend to obtain edu- 13. % of households which report transport constraint on education, i.e. : tion and gender equality cation and to enable effective education to be delivered and reached Lack of girls time for school safely Difficulty (cost) of access Poor quality of education service Lack of safe access to school 4. Access by women to appropriate transport services 14. Proportion of women with access to appropriate modes of transport MDG 4 + 5 5. Rural access and urban mobility improved for reliable supply of inputs 15. % Health centers, clinics, etc., with reliable rural access Child Health and Mater- to health facilities, to provide affordable access for all households and to 16. % of households reporting constraints on access to health services because of: nal Mortality enable cost effective outreach of health activities 17. Distance Cost / difficulty of travel Unit cost immunization / capita Unit cost / coverage of outreach services / capita 6. Emergency transport response to medical crises in rural communities 18. % Emergency patients unable to reach health care in time for: improved through community communications facilities linked to im- Expectant or postnatal mothers proved transport services Children under 5 years 19. % of child birth at home or on the way to a health facility 37 MDG Targets Indicators MDG 6 7. Ensure transport sector ceases to be an agent for spreading HIV/AIDS 20. HIV/AIDS Prevalence among transport sector workers (public and private) HIV/AIDS, malaria and 21. HIV/AIDS prevalence rate in transport affected communities other diseases 22. Inter-country coordination of actions relating to AIDS in transport sector (per 10,000 person) 23. % of countries that have included transport in their HIV/AIDS programs MDG 7 8. Share halved of urban residents for whom mobility problems severely 24. % of households (in the various urban living environments) which report transport Environmental sustaina- constrain access to employment and essential services costs and time as major obstacles to employment bility 25. % of households which report access as a major obstacle for essential services 9. Environmental sustainability promoted in all transport operations 26. Environmental impact identified by audits of transportation programs undertaken and development programs 27. Implementation and enforcement of international conventions in air and maritime transport 10. Production of leaded petrol ceased by 2010 28. Number of countries banning sale of leaded petrol 11. Rate of road accident fatalities reduced by half by 2015 29. Rate of fatality (per million vehicle-km) 30. Number of countries adopting road safety strategies MDG 8 12. Transport cost for landlocked countries reduced by half and their 31. % reduction of missing links of the Trans-African Highways (TAH) network and Global partnership for access to global markets improved, by 2015 transit corridors development 32. % reduction in transport cost for landlocked countries 33. % increase in rail network, between countries 34. % increase in direct private investment 35. Implementation and enforcement of international conventions in air and maritime transport 13. All non-physical transport barriers that increase journey time, cus- 36. Proportion of countries that have reduced checkpoints along their main transit cor- toms clearance, border delay and impede the flow of goods and ser- ridors to a maximum of 3 (between port and border of land-locked country) vices dismantled by 2015 37. % Reduction in the level of pilferage and diversion of goods in transit 38. Proportion of countries that have reduced their border crossing time to the OECD/ Industrialized countries average 39. % Increase in the number of one-stop border posts 40. Proportion of countries that have reduced their port clearing time to the OECD/Industrialized countries average. 41. % Increase in corridor management committees 14. Axle load limits, equipment and infrastructure for all modes of trans- 42. Proportion of countries that have implemented axle load limits and design standards port, technical standards harmonized by all RECs by 2015 for transport infrastructure 15. Air and maritime transport services improved, fares reduced, and 43. Number of new connections between African countries established movement of goods and services facilitated in all African countries by 44. Number of products and volume of traffic of products transported by air and sea 2015 45. Percentage reduction in air and maritime transport fares 16. Compliance with international transport conventions on safety and 46. No of countries that have ratified, implemented and are enforcing international security conventions in the transport sector 38 ANNEX 2. EXAMPLES OF POLICY OPTIONS FOR CONSIDERATION DURING STRATEGIC FRAMEWORK DEVELOPMENT A Road infrastructure management Railway infrastructure and operation Port management and air transport Concessions and privatization Road Agency (public or corporatized) Freight services provided by privately Port Management Concession through Leasing, Franchise, managing road network on behalf of gov- owned principal, regional and local com- Public Service Ports have a predominant- Build-operate-transfer (BOT), etc. ernment. Accountable to Ministry of panies. ly public character. Transport /Public Works or multi- stakeholder Board. Outsourcing most functions other than Intercity passenger services provided by Private Service Ports: Fully privatized Privatization through Build-own-operate policy formulation, regulatory controls and government-owned companies. ports are found in few developed coun- (BOO), Divestiture by license, Divestiture system of accountability. With corpora- tries. Port land is privately owned. Some by sale. tized and privatized planning, design, governments may simultaneously transfer construction and maintenance units. the regulatory functions to private succes- sor companies. Decentralized road management: Most National governments owning the rail Landlord Ports: Characterized by mixed Separation of the functions of owner and functions for network performance being infrastructure and, in most cases, the public-private orientation. The port au- operator, so that the government can hold the responsibility of the state/regional operating companies. thority acts as regulatory body and lan- the operator accountable for performance agencies. Policy coordination and primary dlord, while port operations (especially in pursuit of clearly-defined objectives. roads/highways financing/management at cargo handling) are carried out by private central level. companies. Individual project concessionaires to de- Government granted concessions to Tool Port is relatively rare. It is a blend Transparent competition between poten- velop and manage part of national network. private operators. between the Public Service and Landlord tial investors, service providers, managers Ports. or operators, and straightforward criteria for selection - Adopting appropriate pro- curement procedure. National agency managing the network Separated infrastructure management, Air Transport Agreement on the allocation of risks be- while regional implementing agen- freight operations and passenger opera- Strategic decisions about location, scale tween government and private parties - cies/offices (commercialized agencies) tions, run by public or private companies. and basic configuration to be made best which party is best able to manage the competing for contracts with the private by governments under a national Air risk. sector. Transport Master-Plan 39 Road infrastructure management Railway infrastructure and operation Port management and air transport Concessions and privatization Rural roads managed by regional or local Freight operators owning their infrastruc- Commercializing development and oper- Concession agreements that formalize all government district administrations. ture and operate their own trains, with ation of passenger and freight terminals, rights and responsibilities of parties and one railway company allowed to operate aircraft maintenance, catering and related include arrangements for monitoring services on lines owned by another ­ i.e., services. compliance. tracking rights. Managing rural access roads through local Most passenger services are loss-making Development and operation of terminals Private sector investments should be community engagement. Roads in private and require government budget support. and aircraft maintenance through state consistent with strategic plans. estates managed by owners. Sometimes priced below variable cost and owned enterprises by outsourcing most not able to cover infrastructure mainten- operational and management activities. ance and replacement costs from operat- ing revenues. Outsourcing development and mainten- Separating management of infrastructure ance of rural roads to private sector with from operations, and placing infrastruc- government subsidy for cost recovery. ture management in the hands of a more independent track agency. Unified institutions for urban (large cities) Rail concessions may benefit from initial transport infrastructure management, injections of capital, equipment and up- transport planning and regulation. In some graded facilities. May help to improve countries these functions are merged with labor and asset productivity, cost struc- land use planning. tures, marketing, quality of service and internal business practices. But, railways may unlikely be able to finance major infrastructure renewals from retained revenues. 40 ANNEX 2. EXAMPLES OF POLICY OPTIONS FOR CONSIDERATION DURING STRATEGIC FRAMEWORK DEVELOPMENT B Competition Operational and Regulatory Policies Protection of Public Safety and Environ- Pricing, Taxation and Subsidy Policies ment and Enforcement of Regulations Opening up distribution and logistics markets to Controls that help achieve society's goals in Operators to comply with technical and Inconsistent application of pricing policies foreign participation. relation to efficient and demand-responsive operational standards ­ for the design of and price controls may result in market services, public safety, the environment and road infrastructure, vehicles/vessels, the distortions and limit the ability of operators protection of public assets. And dismantling use of safety equipment (seat belts, signal to develop the services needed by users. unnecessary constraints such as by whom, in flares, etc.). Minimum qualification what way and at what price should services requirements for operators, drivers or be provided. pilots. Independent third party logistics service provid- Unlike heavily structured approach to ser- Restrictions on certain operations found Encourage more efficient services by relax- ers responding to distribution markets by devel- vice licensing in the pursuit of higher stan- to be detrimental to public safety, the ing licensing and operating controls, allow- oping modern logistics networks, including dards, relaxation of controls can often help environment or public assets (e.g., speed ing new market entrants, and encouraging warehouses, packaging plants, inter-modal trans- improve vehicle/vessel productivity, reduce restrictions, limits on overloading, emis- operators to raise productivity and customize shipment facilities, freight consolidation cen- unit costs, and allow more flexible and af- sions, noise, etc.). the services to suit demand. ters... fordable services to develop. Route franchises in which operators are invited Promote alternative approaches that utilize Mandating minimum safety features for Making users face the full incremental costs to bid for the right to operate a defined service market forces more effectively such as Urban public infrastructure (e.g., sight dis- of their transport decisions, including the for a period in return for revenues collected and Bus Route Franchises. tances for roads, etc.). costs of infrastructure and any externalities a periodic subsidy, with the winner awarded on (congestion, pollution, accident risk, etc.). the basis of the minimum subsidy and/or tariff. Franchising rural transport services or services to Incentives that result from operators striving Using incentives to promote compliance Setting tariffs for transport services and remote communities with subsidy. against competitors to win market share in addition to enforcement measures. infrastructure based on markets wherever and/or greater profit. Incentives encouraged The renewal of a business, operating or possible, reflecting quality of service, costs ­ by pricing/taxation tools. driving license, for example, could be including financing and provision for asset made dependent on a satisfactory safety replacement ­ and the choices made by users record of drivers and overloading faced with alternative suppliers. records of operators). 41 Competition Operational and Regulatory Policies Protection of Public Safety and Environ- Pricing, Taxation and Subsidy Policies ment and Enforcement of Regulations Code-sharing for outsourcing the Relaxed market entry by retaining basic Fuel taxation can be an important tool If public services are to be priced at below service to privately-owned specialists, standards of financial, management and to encourage the adoption of more fuel marginal cost, then clearly identify and state e.g., services of "virtual" state-owned safety proficiency as qualification for a li- efficient vehicles and fuel efficient trans- the subsidy. (national carrier) being provided by cense. port solutions. the private sector. Transfer of goods between road, rail, Allowing operators to: i) set prices based on Independent monitoring of enforcement Deal effectively with the possibility of collu- inland waterway and maritime trans- costs and affordability; ii) choose the ve- efforts, in some cases even outsourcing sion among suppliers ­ not necessarily port provided by freight forwarders. hicle or vessel they consider most suitable the enforcement task under perform- through price controls, but by sanctions for the intended purpose; iii) allocate ve- ance-based contract, combined with the (such as the loss of a license). hicles or vessels to routes to raise produc- use of random checks and surveys, e.g. tivity and lower unit costs; iv) schedule outsourcing the operation of their services to maximize productivity. weighbridges to private sector specialists, with independent spot surveys to check compliance. New and revised laws governing trade, Automating the enforcement task as Service franchising arrangements to support customs, competition, investment, much as possible (e.g., use of automated essential but unprofitable services. With the enterprise reform and management of weighbridges) to minimize the involve- subsidies being explicit and phased out over transport modes to facilitate multi- ment of staff. time, as demand develops and profitability modal transport. improves, e.g. provision of services to the remote poor using price controls and/or cross subsidies between profitable and non- profitable routes. Raising public awareness of the costs of Adopting a more structured system of taxa- ineffective enforcement and/or tariff. tion based on the principle of charging users for those costs they impose on society ­ the marginal costs of public infrastructure, congestion, noise, pollution, accident risk, etc. Taxes suppress demand and reduce the viability of transport services. Establishing stand alone Road Safety Assess possibility of applying special taxes to agency or unified transport regulator transport inputs. Such as levies on users like and safety agency. car owners and air travelers. 42 Annex 2. Examples of Policy Options for Consideration during Strategic Framework Development- C Planning and Investment Decisions Resources and Cost Recovery, Stakeholders Participation and External Re- Government unctions views of Plans & Strategies Projects should be consistent with long- Effective use of resources from Project proposals should be subject to inde- Policy formulation, Planning, regulating, coor- term strategic and regional development Government budget and do- pendent review, preferably by an agency sepa- dinating and monitoring functions, especially plans and goals. nor support. rate from the sponsoring ministry. in market entry, competition, pricing, taxation, public safety and environmental protection. Minimum acceptable standards of envi- Enhancing private sector Review should test variations from overall Establishing more autonomous agencies to man- ronmental impact and safety; and factoring participation and Community objectives and initial assumptions; availability age state-owned commercial assets in a more in gender equity and employment genera- in-kind and/or cash contribu- of resources, affordability, and sustainability. business-like way ­ and selling them to the pri- tion. tion. vate sector when there is a competitive market. Addressing both infrastructure management A rational structure of user Participation of stakeholders from public Outsourcing tasks with improved con- and transport services delivery. Rational charges and taxes, coupled with and private sectors and civil society in plan- tract/concession agreements, performance targets allocation of funds for infrastructure build- a policy of recovering the costs ning, decision making and monitoring by & monitoring procedures. ing and maintenance, transport services, of externalities. engaging them in multi-stakeholder boards policy, capacity development, safety and or consultative groups. environmental impact mitigation. Establishing a threshold economic rate of Dedicated funding such as a Keeping the public informed of progress and Engaging stakeholders and external reviewers in return, in terms of a positive Net Present Road Fund. using media to effectively secure its support. planning, regulation and performance- Value (NPV) or Economic Internal Rate of monitoring. Return (EIRR) with costs and benefits forecast over a specified period. A financial internal rate of return (FIRR), e.g., where user charges are levied and the project serves a commercial purpose. National standards for transport infra- Commercialization of ports, structure providing guidance on safety, airports and toll roads, and geometric and load-bearing appropriate to thereby towards cost recovery the traffic level. Staged development of for those types of infrastruc- higher standards in line with growth in ture. demand, to be tested at the project evalua- tion stage. Note: This is neither an exhaustive list of options nor a complete description of the options. 43 ANNEX 3. TERMS OF REFERENCE FOR CONSULTANCY SERVICES TOR sample of consultancy services for the definition of a PGPTS Background The development of transport strategies facilitating growth, poverty reduction and achieving the millennium development goals (MDGs) is increasingly becoming top priority for Sub Sa- haran African (SSA) countries. In line with this [name of country] has initiated a process of developing a pro-growth, pro-poor transport strategy (PGPTS). The strategy is intended to set the vision, strategic objectives, and investment and policy framework for the transport sector. The strategy development process involves an intensive consultation with a broad range of stakeholders from public, private sector and civil society. The process also envisages the need for undertaking an extensive analytical work, by a technic- al team (a team of consultants), and providing proposals for stakeholders' consideration. In this process, the technical team will analyze the second generation poverty reduction strate- gies (SGPRS) and existing transport sector strategies and programs and prepare a series of reports to be considered by the stakeholder group. A brief account of the SGPRS and the transport sector strategies and programs is provided below. [Brief accounts of the second generation poverty reduction strategy- mainly the goals, priority sectors and how transport is conceived in the strategy. Overview of the transport sector of the subject country- mainly the state of the transport sector, major challenges and existing trans- port strategy formulation mechanism]. The process will be coordinated by [name of the institution responsible for the strategy devel- opment], following the strategic guidance to be provided by a steering group (SG) composed of key stakeholders representing the public, the private sector and civil society. A proposal on the process formulating the strategic framework referred to is set out in a guidance note that will be made available to the consultants. The robustness of the strategy depends on the quali- ty of the input to the stakeholders and the procurement of the consultancy services to support the stakeholders in the development of the strategy is the subject of these ToRs. 45 Objectives of the services The principal objective of the consultancy services is to prepare a draft sector investment pro- gram and policy framework by undertaking analytical work and providing inputs to stake- holders' consultation processes through drafting interim discussion papers. Approaches to the development of a PGPTS The strategy development process is participatory. In line with this, the government will estab- lish a steering group composed of key stakeholders from the public, private sector and civil society. The steering group will establish a stakeholder forum representing the interest of all transport and non- transport actors. The stakeholder forum deliberates on strategic elements at workshops based on the inputs to be provided by the consultancy team. The outputs of the analytical work to be carried out by the consultancy team will also be regularly reviewed by the steering group. The overall process involves: Stage one: Undertaking transport sector diagnostics and identifying transport de- mands of the SGPRSs and the MDGs by the consultancy team. And, based on the findings and proposals of the consultancy team, facilitating stakeholders in formu- lating sectoral vision, and defining strategic objectives and priorities. Stage two: Identifying specific transport interventions and determining the policy changes and strategies required to facilitate investments. The analytical work will be carried out by the consultancy team while specific actions and policies will be de- termined by the stakeholders. Stage three: Drafting investment, policy and monitoring frameworks based on the deliberations of the stakeholders. Scope of work Overall task Undertake analytical work, provide technical advice to the steering group and serve as a resource person at stakeholder forums. Stage one (mapping strategic objectives and transport priorities) Assess the implications of macroeconomic policies on transport development. Identify the transport demands of the priority economic and social sectors of the SGPRS and achieving the MDGs. Conduct baseline study of the transport sector with the objective of: i) assessing the state of the transport sector, ii) identifying major challenges/issues of the sector, iii) 46 identifying weaknesses and strengths of the existing transport policies, strategies and sector and/or sub sector programs, iv) assessing the level of investment in transport; and v) assessing the contribution of transport to economic growth and poverty reduction. Conduct consultation with key sectoral stakeholders and target population (rural and urban poor, women, the aged and disabled persons) to establish a better under- standing of sectoral demands and interest of the vulnerable groups. Prepare background documents for stakeholder consideration. The documents shall include the findings of the above mentioned assessments, and a brief note on sectoral vision and strategic objectives. Stage two (setting the sector development framework) Undertake quantitative and qualitative analysis to identify specific physical and pol- icy related transport interventions, including but not limited to the following: - Undertake a comprehensive rural (feeder) roads network analysis to iden- tify the rural roads (access) network (new and existing) at district level and rank the interventions. The consultant may use a simple matrix of selected objectives (multi objective criteria), which may include population, traffic, change in accessibility, development potential and costs of improvement or construction to prioritize the proposed interventions. The consultant shall also propose appropriate institutional arrangements for the man- agement of the access roads/rural roads. Further, the consultant has to re- view the situation of transport services provision and incorporate appro- priate interventions to improve the services, in particular, improving the mobility of the rural poor. (This specific task is mentioned as a priority since the Poverty Reduction Strategy (PRS) documents of many African countries conceive agriculture and rural development as a priority sector. While adopt- ing this ToR, if agriculture is not a priority sector, for the case country, this task could be adjusted accordingly). - Review the mobility constraints in the urban areas and incorporate appro- priate interventions to improve urban mobility. (This specific task is men- tioned as a priority following the recommendations of the poverty reduction and transport strategy reviews (PRTSR) undertaken in 18 SSA counties since 2003. While adopting this ToR, if urban mobility is not a priority, for the case country, this task could be adjusted accordingly). - Following the derived demand of priority economic and social sectors, and trade flows, undertake road network gap analysis: i) trip generation, ii) trip distribution, iii) traffic assignment, and iv) evaluation of efficiency and economic viability of alternative schemes, and rank interventions. - Assess transport related constraints to interstate/regional and overseas trade and identify physical interventions and trade facilitation measures. 47 The consultant shall assess the option of developing a multimodal trans- port system along interstate/regional corridors and major internal trans- port corridors, including import- export corridors. - Assess crosscutting issues (Road Safety, Gender, Employment and Envi- ronment) and incorporate appropriate measures. - Assess the potential for the development of inland water transport and as- sociated ports. - Assess transport infrastructure maintenance requirements and draw main- tenance action plan. - Assess all other transport interventions required to respond to the SGPRS and the MDGs. - Aggregate all transport intervention and develop a comprehensive and in- tegrated investment framework that could serve as a master plan for the sector. Assess financial requirements of all the interventions. Review existing transport policies and identify policy changes required to lead and facilitate the investment. Outline strategies facilitating the implementation of the transport interven- tions and policy changes, and ensuring sustainability of the investment. Identify indicators to measure progress, outputs, outcomes and impacts of the transport investment and policy changes; undertake a baseline survey and identify a sustainable monitoring and evaluation arrangement. Prepare and present to the stakeholder forum a discussion paper containing the points indicated above. Stage three (preparing the strategic framework) Based on the deliberations of the stakeholder forum prepare a comprehensive document containing a sector investment framework, sector policy framework and strategies, and monitoring framework. Prepare good practice document showing the actual process, areas of im- provement and good practices emerging during the strategy development process. The document shall also highlight key features of the strategy. Outputs of the services A transport sector update describing the state of the transport sector as a whole with details on road infrastructure, transport services, ports, rail and regional corridors (Transport Sector Baseline Study-diagnosis- Report). First interim report - mapping transport priorities. This report shall include a brief note providing information that helps to develop a sectoral vision and strategic objectives, reflecting experience of other countries. 48 Second interim report consisting of i) investment program showing articulated policy related and physical intervention projects with cost estimate- folding in all modes, transport services and crosscutting issues; ii) policy framework cross referenced to the strategic objectives, key issues and proposed policy actions; iii) strategies facilitating the implementation of the policies and investments, including regulatory, institutional and financing aspects; and iv) monitoring framework with indicators, baseline data and monitoring and evaluation ar- rangements. It is also desirable to prepare a brief note on prioritization of in- vestments. Draft final report: a comprehensive pro-growth, pro-poor transport strategy (sectoral vision and strategic objective, investment framework, Policy and stra- tegic framework and monitoring framework) to be drafted based on the out- comes of the stakeholder forum. Final report: The drafting of the final sector development framework - pro- growth, pro-poor transport strategy - with a preliminary road map for its im- plementation, which is prepared based on the outcomes of the analytical works and stakeholders views, is the final deliverable of the consultancy services. The consultant should also deliver a brief report summarizing the process, lessons learnt, good practices, and key features of the strategy. The consultancy services The consultancy team The consultancy will deploy a team which will possess the following competencies and any others which may be required: A multi disciplinary team consisting of Transport Planner/Economist, Transport Engineer (supported by intermittent sub sector specialists), Development Planner/Economist, Social and Environmental Scientist, and Workshop Facilitator (agreed by the steering group).The consultants should be competent with documented experience in their respective fields and hold a university level degree with a minimum of 15 years experience. Experience in data col- lection, processing, statistical analysis and strategy development is essential. Timeframe It is anticipated that the Consultancy/firm would complete the services over a duration of nine months (to be adjusted based on specific situation of the subject country). 49 Reporting The consultant will submit an inception report clearly outlining the methodol- ogy, organization and schedule of activities for the assignment within 4 weeks of signing the contract ­commencement. First interim report ­ Synthesis of the analysis work carried out at stage 1 and Transport Sector Update - Baseline Study report (Within 12 weeks of com- mencement). Second interim report (within 16 weeks of the first stakeholder forum- this fo- rum is suggested to be organized right after submission of the first interim re- port). Draft final report (within 4 weeks of the second stakeholder workshop). Final report and good practice note (within 4 weeks of the validation work- shop). Input from the Client To be determined by the subject country. 50