LAC study tour: Urban Mobility - sector note 1

This publication is part of a series of five notes reviewing the trends and challenges associated with urban development in Latin American cities (LAC) in five key sector.

All of these notes identify the specific challenges that the cities have encountered in managing urban development and the impact of climate change. African cities can draw valuable insights from Latin American cities, which have successfully implemented innovative solutions to tackle the challenges of urban development while keeping environmental and fiscal sustainability standards.

This note reviews the lessons that African cities can learn from Latin American experiences in the transportation sector. It details recommendations and policy insights for African policymakers and stakeholders looking to improve transportation systems in their cities.

The first part gives an overview of the transportation challenges and context in Latin American cities. It explains why experiences from Latin American cities are relevant and the rationale for considering their practices for African cities.

Then, the note focuses on key transportation initiatives and experiences in Latin American cities: successful projects, policies, and innovations. It gives examples of cities that have improved public transportation, reduced congestion, or enhanced sustainable mobility options.

Then, the paper describes the economics of the transportation sector in Latin America: cost recovery sector through end-user tariffs, the existence of positive externalities, government subsidies, and funding mechanisms. It explains how these economic factors have contributed to the sustainability of transportation services in the region. 

It also describes the common types of financing structures used for transportation projects, the types of funding mechanisms, such as loans, grants, and public investments, and their role in transportation services. It highlights the experience of the AfDB and other Development Financial Institutions financing similar projects in Africa.

To conclude, the note explores the involvement of the private sector in the provision of transportation services in Latin American cities: Public-private partnerships (PPPs), concessions, and other models used.