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Transport and ICT Global Practice

TRANSPORT OPERATIONS IN

FRAGILE AND CONFLICT AFFECTED SITUATIONS

Kulwinder Singh Rao Senior Highway Engineer

February 2, 2016

PRESENTATION OVERVIEW

1. The FCV challenge

2. Current Portfolio

3. Key challenges

Transport Operations in Fragile and Conflict Affected Situations 1

Poor people will increasingly be in countries affected by FCV (40% of poor in FCV by

2030); Addressing FCV challenges is key to achieving the twin goals

By 2020, half of extremely poor will hail from fragile and conflict affected states

FCV is not only a low income country problem – MICs are also affected (56% of

people affected by armed conflict live in MICs)

Violence and conflict threaten shared prosperity: Homicide rates are four times

higher in countries with a Gini index greater than 0.45 than in more equal societies.

Populations vulnerable to FCV – especially the 50 million displaced persons globally –

are also among the poorest.

Weak business climate and high risks to investments are obstacles to private

financing for development and job creation

Transport Operations in Fragile and Conflict Affected Situations 2

CONTEXT: FRAGILITY, CONFLICT AND VIOLENCE ARE DEFINING CHALLENGES FOR THE GLOBAL COMMUNITY

ADDRESSING FCV CHALLENGES IS FUNDAMENTAL TO ACHIEVING WBG GOALS

Transport Operations in Fragile and Conflict Affected Situations 3

Promote Shared Prosperity

‘FCV Surge’ to address development risks and deliver results

Political violence

End Extreme Poverty

Civil Conflict

An increasing share of the world’s poor will live in fragile and conflict-affected states

Sub-national regions and urban centers impacted by FCV are being left behind

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Bretton Woods (1944): Articles of Agreement - economic development function / no emergency relief function

“and Development” sought by delegation of Mexico

By 1950, focus of Bank is shifting to Development (large infra. works)

Transport Operations in Fragile and Conflict Affected Situations 4

FROM “LICUS” TO “HARMONIZED LIST OF FRAGILE SITUATIONS”

Transport Operations in Fragile and Conflict Affected Situations 5

2001 2011-2016 2006-2015 2002

LIST OF FRAGILE SITUATIONS 2006-16

Transport Operations in Fragile and Conflict Affected Situations 6

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Africa

Angola Angola Angola Angola Angola Angola Angola Angola Burundi Burundi Burundi Burundi Burundi Burundi Burundi Burundi Burundi Burundi Burundi Central African Central African Central African Central African Central African Central African Cameroon Cameroon Central African Central African Central African Chad Chad Chad Chad Chad Chad Central African Central African Chad Chad Chad Comoros Comoros Comoros Comoros Comoros Comoros Chad Chad Comoros Comoros Comoros Congo, Democrat Congo, Democrat Congo, Democrat Congo, Democrat Congo, Democrat Congo, Democrat Comoros Comoros Congo, Democrat Congo, Democrat Congo, Democrat Congo, Republic Cote d'Ivoire Cote d'Ivoire Congo, Republic Congo, Republic Congo, Republic Congo, Democrat Congo, Democrat Congo, Republic Congo, Republic Congo, Republic Cote d'Ivoire Eritrea Eritrea Cote d'Ivoire Cote d'Ivoire Cote d'Ivoire Congo, Republic Congo, Republic Cote d'Ivoire Cote d'Ivoire Cote d'Ivoire Eritrea Guinea-Bissau Gambia, The Djibouti Djibouti Djibouti Cote d'Ivoire Cote d'Ivoire Eritrea Eritrea Eritrea Guinea-Bissau Liberia Guinea-Bissau Eritrea Eritrea Eritrea Djibouti Djibouti Guinea Guinea Guinea Liberia Madagascar Liberia Gambia, The Gambia, The Gambia, The Eritrea Eritrea Guinea-Bissau Guinea-Bissau Guinea-Bissau Madagascar Mali Madagascar Guinea Guinea Guinea Gambia, The Gambia, The Liberia Liberia Liberia Malawi Sierra Leone Mali Guinea-Bissau Guinea-Bissau Guinea-Bissau Guinea Guinea Sao Tome and Pr Sierra Leone Sierra Leone Mali Somalia Sierra Leone Liberia Liberia Liberia Guinea-Bissau Guinea-Bissau Sierra Leone Somalia Somalia Sierra Leone South Sudan Somalia Nigeria Mauritania Sao Tome and Pr Liberia Liberia Somalia Sudan South Sudan Somalia Sudan South Sudan Sao Tome and Pr Nigeria Sierra Leone Sao Tome and Pr Sao Tome and Pr Sudan Togo Sudan South Sudan Togo Sudan Sierra Leone Sao Tome and Pr Somalia Sierra Leone Sierra Leone Togo Zimbabwe Togo Sudan Zimbabwe Togo Somalia Sierra Leone Sudan Somalia Somalia Zimbabwe Kiribati Zimbabwe Togo Kiribati Zimbabwe Sudan Somalia Togo Sudan Sudan Kiribati Marshall Island Kiribati Zimbabwe Marshall Island Kiribati Togo Sudan Zimbabwe Togo Togo Myanmar Micronesia, Fed Marshall Island Kiribati Micronesia, Fed Marshall Island Zimbabwe Togo Cambodia Zimbabwe Zimbabwe Solomon Islands Myanmar Micronesia, Fed Marshall Island Myanmar Micronesia, Fed

EAP

Cambodia Zimbabwe Kiribati Cambodia Kiribati Timor-Leste Solomon Islands Myanmar Micronesia, Fed Solomon Islands Myanmar Lao People's De Cambodia Lao People's De Kiribati Myanmar Bosnia and Herz Timor-Leste Solomon Islands Myanmar Timor-Leste Solomon Islands Myanmar Lao People's De Myanmar Lao People's De Papua New Guine Georgia Bosnia and Herz Timor-Leste Solomon Islands Tuvalu Timor-Leste Papua New Guine Myanmar Papua New Guine Myanmar Solomon Islands Kosovo Georgia Tuvalu Timor-Leste Bosnia and Herz Tuvalu Solomon Islands Papua New Guine Solomon Islands Solomon Islands Timor-Leste Tajikistan Kosovo Bosnia and Herz Tuvalu Kosovo Bosnia and Herz Timor-Leste Solomon Islands Timor-Leste Timor-Leste Tonga Haiti Haiti Kosovo Bosnia and Herz Haiti Kosovo Tonga Timor-Leste Tonga Tonga Bosnia and Herz Iraq Iraq Haiti Kosovo Iraq Haiti Vanuatu Tonga Vanuatu Kosovo Georgia Yemen, Republic Yemen, Republic Iraq Haiti Libya Iraq

ECA Kosovo Vanuatu Kosovo Tajikistan Kosovo West Bank and G West Bank and G Libya Iraq Syrian Arab Rep Lebanon

Tajikistan Kosovo Uzbekistan Uzbekistan Tajikistan Western Sahara Western Sahara Syrian Arab Rep Libya West Bank and G Libya Uzbekistan Uzbekistan Haiti Haiti Haiti Afghanistan Afghanistan West Bank and G Syrian Arab Rep Yemen, Republic Syrian Arab Rep

LAC Haiti Haiti West Bank and G Yemen, Republic Yemen, Republic Nepal Nepal Yemen, Republic West Bank and G Afghanistan West Bank and G

MENA West Bank and G West Bank and G Afghanistan West Bank and G West Bank and G 33 33 Afghanistan Yemen, Republic 32 Yemen, Republic

SAR Afghanistan Afghanistan 34 Afghanistan Western Sahara Nepal Afghanistan Afghanistan 35 35 35 Afghanistan 35 Nepal 35 Nepal 36 37

The Geography of Fragile Situations 2016

Transport Operations in Fragile and Conflict Affected Situations 7

TRANSPORT PORTFOLIO IN FCS COUNTRIES (FY06-16)

Transport Operations in Fragile and Conflict Affected Situations 8

445 382

736

285

961

433

500

680

1 033

681

397

7

5

10

6

12

8

9

6

10

9

3

0

2

4

6

8

10

12

14

0

200

400

600

800

1000

1200

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

No

of P

roje

cts

Com

mitm

ents

USD

mill

ions

Fiscal Year

Lending Commitment millions No of Projects

TRANSPORT PORTFOLIO in FCS COUNTRIES REGION WISE SPLIT (FY06-16)

Transport Operations in Fragile and Conflict Affected Situations 9

30

21

12

4

7

11

Number of Operations

AFR EAP ECA LCR MNA SAR

2 630

637 1 177

198

820

1 073

Commitments (USD millions)

TRANSPORT PORTFOLIO IN FCS COUNTRIES (FY06-16)

Transport Operations in Fragile and Conflict Affected Situations 10

7

52

8

10

5 3

Urban Transport

Rural and Inter-Urban Roadsand HighwaysPorts, Waterways andShippingAviation

Railways

EXAMPLES OF TRANSPORT OPERATIONS IN FCS COUNTRIES

Transport Operations in Fragile and Conflict Affected Situations 11

• DRC Multi modal Transport Project • Airport • Railways • Waterways • Transport Sector Governance

DRC

• Liberia Urban and Rural Infrastructure Project • Port • Rural and Inter Urban Roads • Bridges • Institutional Strengthening

Liberia

• Pacific Aviation Investment Project • Aviation Infrastructure • Aviation Sector Reforms • Strengthening Operations &

Management

Kiribati

• Emergency Operation for Development Project • Restoring Electricity, Solid Waste, Water & San. • Reconstruction of Housing and

Transport Infrastructure • Development Planning • State/Citizen Trust Building

Iraq

Some of the key Challenges

• Rapidly changing global development landscape • Political unrest and violence in Mideast, Ukraine, Venezuela etc. • Rising extremism in regions and sub-regions

• Current system of measuring and identifying fragility • Excludes IBRD only countries facing subnational, cross border, or

supranational forms of stress and violence. • Revision underway

• Mismatch between the available resources and the needs • Mobilizing additional resources • Balancing the work scope of FCV issues and developing selective

approach

Transport Operations in Fragile and Conflict Affected Situations 12

Thanks for your attention.

Questions?

Transport Operations in Fragile and Conflict Affected Situations 13

Policy OP 10.00, Para, 12 “Projects in Situations of Urgent Need of Assistance or Capacity Constraints.”

Projects in Situations of Urgent Need of Assistance or Capacity Constraints.

… In cases ... “(i) …in urgent need of assistance because of … disaster or conflict; or (ii) experience capacity constraints because of fragility or specific vulnerabilities (including for small states); … with the following exceptions:

(a) Defer fiduciary and environmental and social requirements to the implementation phase

(b) … special procurement arrangements referred to in paragraph 20 of OP 11.00 and … (projects) may finance a positive list of goods procured in a manner that satisfies the considerations of economy and efficiency (including national procurement procedures of the Borrower).

(a) Procurement under Situations of Urgent Need of Assistance or Capacity Constraints. OP 10.00 – special procurement rules laid out in “Situations of Urgent Need of Assistance or Capacity Constraints: Simplified Procurement Procedures.”

(b) When, inter alia, a UN agency is retained as an implementing agency for projects financed through a Multi Donor Trust Fund (MDTF), provided that it is a signatory to the Fiduciary Principles Accord (FPA),13 it may use its own policies and procedures for all procurement.

(c) Such Projects are subject to special limits on the use of (i) Preparation Advances (“PAs”) (see paragraphs 17-18 of this OP) and, (ii) in the case of Projects supported by a Bank Loan, retroactive financing.

(d) When the beneficiary’s capacity to implement is insufficient, hire “enter into arrangements with relevant international agencies, including the United Nations, and national agencies, private entities, or other third parties”

(e) “…arrangements under (d) are limited to the time necessary to establish or restore the Borrower’s or the Implementing Entity’s capacity…” and “Bank-executed start-up activities are limited to activities which involve the procurement of small contracts for goods and works, and the provision of technical assistance necessary to enable the Borrower or the Implementing Entity to undertake the execution of subsequent Project activities.

Transport Operations in Fragile and Conflict Affected Situations 14