Transport Notes

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The goal of Transport Notes series is dissemination of recent experiences and innovations in the World Bank Group’s transport sector operations.

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Now showing 1 - 10 of 12
  • Publication
    Assessment of Road Funds in South Asia Region
    (World Bank, Washington, DC, 2008-12) Guillossou, Jean-Noel; Stankevich, Natalya
    Sustaining an adequate level of resources for road maintenance has been a continuous issue worldwide, including in South Asia. Since the late 1990s South Asia has developed different models of Road Funds (RFs), at the national level, or in the case of India at the state and local level, to improve sources of financing for road maintenance and development. The World Bank South Asia transport team has carried out a review of RFs in the region to draw lessons learned from the past experience. The review provides the analytical underpinning for advising governments on how to improve the performance of existing RFs or how to establish new RFs for road maintenance, and for providing guidance to the World Bank for revising its transport sector strategy in relation to road policy reforms in the South Asia region.
  • Publication
    How a Road Agency Can Transform Force Account Road Maintenance to Contracting
    (World Bank, Washington, DC, 2006-06) Andreski, Adam; Seth, Subhash; Walker, Wendy
    Recent international trends in the reform of road management, point to the need to transform force account road maintenance services. With Force Account, funding tends to be erratic; management of equipment and its support facilities inadequate, planning, supervision and execution require high standards of staffing, quality control may be poor; and reporting systems weak. Contracted works have the advantages that payment of work is done to specification, rates are known making budgeting and planning easier, risk is transferred from the Public Sector to the Private Sector, and the profit motive tends to promote efficiency and reduce unnecessary waste. An International Labour Organization study in Cambodia found that contracted road maintenance is 24 percent cheaper than force account and Talvitie found contracting out gave 5-15 percent in efficiency gains. Many countries have already gone through this process and every country has a different experience. This paper brings a systematic approach with a focus on situation analysis, identification of options, developing transformation strategy, addressing social issues, management options, and monitoring efficiency and effectiveness of the program.
  • Publication
    Surfacing Alternatives for Unsealed Rural Roads
    (World Bank, Washington, DC, 2006-05) Henning, Theuns; Kadar, Peter; Bennett, Christopher R.
    Despite extensive road construction programs over the last century, a substantial proportion of roads remained unsealed especially in developing and emerging economies. As these economies develop, the demand arises to seal previously unsealed roads. The most economical transition point between unsealed and sealed roads depends on many conditions that need to be evaluated. The purpose of this Note is to provide guidance for decision makers, engineers and administrators on selecting the most appropriate surface for unsealed road given the prevailing conditions. It is based on the report "Surfacing Alternatives for Unsealed Roads" (report 37192).
  • Publication
    Highway and Railway Development in India and China, 1992-2002
    (World Bank, Washington, DC, 2006-05) Harral, Clel; Sondhi, Jit; Guang Zhe Chen
    This Note compares the development of highway and railway infrastructure in India and China during 1992 and 2002. It examines key strategies pursued by the countries including China's highway financing schemes; China's planning, design, tendering, and supervision of construction; potential lessons learned from India's highway sector development; the comparative financial and operational performance of the two countries; and lessons learned from China railways, particularly its ability to achieve to achieve higher output and productivity.
  • Publication
    Notes on the Economic Evaluation of Transport Projects : Fiscal Impacts
    (World Bank, Washington, DC, 2005-01) Mackie, Peter; Nellthorp, John; Laird, James
    The Economic Evaluation Notes are arranged in three groups. The first group (TRN-6 to TRN-10) provides criteria for selection a particular evaluation technique or approach; the second (TRN-11 to TRN-17) addresses the selection of values of various inputs to the evaluation, and the third (TRN-18 to TRN-26) deals with specific problematic issues in economic evaluation. The Notes are preceded by a Framework (TRN-5), that provides the context within which we use economic evaluation in the transport sector. Transport projects have an impact not only on citizens and businesses, but on governments - central, regional and local. Financing and managing the project will place demands on the government's capital and current accounts. Whether these demands are greater or smaller, and how they are phased over time, will depend on the financing mechanisms used and the extent to which the public sector is involved. Alternative approaches for private finance and management are described in the World Bank's 'Public-Private Options' toolkit. In this note, we consider how the appraisal should take the financial effects into account, and how they fit within the appraisal results, as described in the Framework.
  • Publication
    Projects with Significant Expected Restructuring Effects
    (World Bank, Washington, DC, 2005-01) Mackie, Peter; Nellthorp, John; Laird, James
    This note focuses on the economic evaluation of more conventional infrastructure investments, and specifically on two types of projects which may result in significant economic restructuring - relocation of economic activities, generation of new activities, or changes in the way that current activities are undertaken. The two examples used: new urban rail lines and major new barrier crossings serve simply as examples of a much wider issue. The issue is that whenever projects bring about a large step change in transport costs, there is a stimulus for a reorganization of economic activity outside the transport sector.
  • Publication
    Treatment of Maintenance
    (World Bank, Washington, DC, 2005-01) Mackie, Peter; Nellthorp , John; Laird, James
    Maintenance is an often overlooked aspect of appraisal. The effective treatment of maintenance within an appraisal is, however, fundamental to informing the decision regarding the optimum investment strategy. This is because the nature of the maintenance strategy can have direct implications on operating costs and other benefits (e.g. travel time savings). As such the impact of maintenance within an appraisal extends far beyond a simple consideration of its financial cost. The first Section of this Note introduces the importance the correct treatment of maintenance has with respect to an economic appraisal. Following Sections present the primary components of maintenance costs, and introduce the notion of whole life costing and the fact that there is a risk that maintenance may not occur. Next, the Note discusses the issues associated with deriving future maintenance costs, and further discuss the need for inclusion within the appraisal of, first, delays to transport users during maintenance works, and second, of the amount of induced and re-assigned traffic. The final Section presents a summary of the key points that should be borne in mind with respect to the treatment of maintenance within an economic appraisal.
  • Publication
    Rural Access and Mobility in Pakistan : A Policy Note
    (World Bank, Washington, DC, 2005-01) Essakali, Mohammed Dalil
    This note presents a number of policy options to improve basic access and promote the mobility of Pakistan's rural population in support of the Government's Poverty Reduction Strategy. This is achieved through more focused and community driven interventions to meet the direct needs of the rural population. The current state of rural accessibility and mobility are examined together with their effect on both the social and economic dimensions of rural poverty. Key challenges and constraints to reform are identified. The note contributes to the current debate within Pakistan with regard to the better targeting of interventions to assist the rural poor. It should also be of interest to policy makers in other countries concerned with how rural transport policy may be developed to meet the Millennium Development Goals.
  • Publication
    Treatment of Induced Traffic
    (World Bank, Washington, DC, 2005-01) Mackie, Peter; Nellthorp, John; Laird, James
    Induced traffic can be an important part of the economic appraisal particularly when the objective of the investment is to stimulate economic development; it's importance, however, is not restricted to such situations. The omission of induced traffic from the economic appraisal, or its incorrect treatment, may lead to either over or underestimations in the user benefits (consumer surplus) of an investment. In addressing this issues, this note, considers: the importance of induced traffic for the economic appraisal (Section 1); what constitutes induced traffic (Section 2); the situations in which induced traffic is likely to be relevant (Section 3) and the manner in which it can be modeled (Section 4) and user benefits calculated when it is present (Section 5). The annexes show the relative importance of including the benefits of induced traffic in the evaluation of an urban transport project; where the standard "rule of one half" breaks down in some situations that are often present in Bank projects, while another shows a numeric integration technique that can be used as a valid alternative to the rule of one half in many of these situations (and coincidently, provides a more precise evaluation even where the "rule of one half" gives an acceptable estimation).
  • Publication
    Where to Use Cost Effectiveness Techniques Rather Than Cost Benefit Analysis
    (World Bank, Washington, DC, 2005-01) Mackie, Peter; Nellthorp, John; Laird, James
    Cost Benefit Analysis, and the measures of economic performance that can be derived from it (see Note 6: When and How to Use NPV, IRR and Adjusted IRR), is the preferred method for demonstrating the economic justification of transport investments. Such an approach, however, relies on the ability to be able to measure costs and benefits in monetary terms (see Note 5: Framework), which renders it problematic for projects where the majority of benefits cannot be readily monetised. Such a project could be a Low Volume Rural Road (see Note 21: Low Volume Rural Roads). In such situations consideration should be given to the use of measures derived from cost effectiveness or weighted cost effectiveness (also known as Multi Criteria Analysis) techniques as the basis for the decision regarding whether to invest or not. Cost effectiveness techniques are also a very useful tool for project screening or ranking. Such a screening process ensures that projects that are subjected to a more detailed analysis (including cost benefit analysis) are those that best fit with the objectives of the investment (e.g. poverty alleviation). Section 1 of this note outlines the situations in which cost effectiveness techniques should be used, whilst Section 2 describes the two main types of approaches. Section 3 discusses the issue of economic viability and cost effectiveness whilst Section 4 presents a summary of recommendations.