African Development Bank – AFDB
The African Development Bank (AfDB) Group was founded in 1964. The institution aims at assisting African countries – individually and collectively – in their efforts to achieve sustainable economic development and social progress.
AfDB understands its role as a catalyst to solve African challenges, including transport problems. For this it has national and regional programmes.
In recent years the largest share of Bank Group financing approvals was targeted to the infrastructure sector, comprising transportation, water supply and sanitation, energy, and information. Of the 1.93 billion injected into infrastructure in 2007, 756 million (39.2% of the total) was allocated to the transport sector.
In all transport programmes AfDB focuses predominately on infrastructure development and recently announced that it will nearly double its infrastructure spending across the continent to close to $10 billion over the next five years.
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Established in 1944, the World Bank is headquartered in Washington, D.C. The World Bank provides low-interest loans, interest-free credits, and grants to developing countries. These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.
The main concepts behind the development lending of the World Bank were evolving from a very narrow approach on economic growth and poverty alleviation towards a wider set of criteria like roles of public and private sectors, social concerns, including latest the aspects of governance, corruption, and climate change.
Like with all other multi- and bilateral co-operations the lending operation itself “is a product of an interactive process involving the partner-country- government and the Bank”. Project loans especially to cities are the main operational instrument for urban transport projects.
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Chinese Development Assistance
China Development Bank, founded in March 1994 has been a major player in long-term financing for key projects and supportive construction in infrastructure, and basic and pillar industries.
China has developed to be one of the major bilateral players in the African infrastructure sector with more than 20% market share in contracting infrastructure projects. The estimated share of commitments to the African infrastructure sector is approximately 15%. Most of the funding is provided through the China Development Bank and China EXIM Bank. The principal financing method is direct funding by the government through the China EXIM Bank, China Development Bank (via the China-Africa Development Fund) or the Chinese Ministry of Commerce in the form of concessional loans, development aid, soft loans and export seller’s credit.
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Asian Development Bank
Founded in 1966. ADB is committed to helping developing member countries evolve into thriving, modern economies that are well integrated with each other and the world. The main devices for assistance are loans, grants, policy dialogue, technical assistance and equity investments.
Although the ADB is not directly involved in financing transport projects in Africa, the Bank has recently developed a quite progressive approach towards a shift in transport funding – and hence is of high value for being recognised by those funding bodies focused on Africa.
Transport has been one of ADBs main sectors over the past 4 decades and currently accounts for nearly 32% of total lending and has focused on providing road connectivity for development. However, challenges facing Developing Member Countries require ADB to revise their approach.
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Japan Development Cooperation – JICA/ JBIC
The Development Bank of Japan was founded in 2008, it successes the Japan Development Bank. Community development, environmental conservation and sustainable societies, and creation of technological and economic vitality are some of their efforts.
Until 2008, the JBIC Guidelines (Japanese Bank for International Cooperation, 2002) and the Japan International Cooperation Agency (JICA) 2004 Guidelines for Environmental and Social Considerations had been the basis for Loans aid and technical cooperation. In 2008 the three forms of the JICA and JBIC wings of the ODA assistance (technical cooperation, Loan aid, and Grant aid) were integrated in the “JICA GUIDELINES FOR ENVIRONMENTAL AND SOCIAL CONSIDERATIONS” .
JICA clearly states that it implements cooperation activities in accordance with the guidelines. JICA also encourages host country governments, including local governments, borrowers, and project proponents, to implement the appropriate measures for environmental and social considerations when engaging in cooperation activities.
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KfW Entwicklungsbank is the leading development bank in Germany and an integral part of KfW Bankengruppe. The bank cooperates with partners all over the world. The main client is the Federal Ministry for Economic Cooperation and Development (BMZ) and other German federal ministries, as well as the European Commission and governments of other countries.
KfW Entwicklungsbank (KfW) sees transport as the basis for a stable economy and indispensable for production and trade (“No growth without transport”) and is therefore seen as the key poverty reduction instrument. KfW has a pro-poor approach regarding their projects. KfW published in 2003 a discussion paper aiming “to show possible effects on poverty of transport sector projects.” In the paper KfW showed, that “if appropriately designed, transport sector projects can make a considerable contribution to reducing poverty”. It also showed “how transport projects can be designed to increase their poverty reduction effects”.
To support the investments in transport systems KfW also looks at the underlying sectoral conditions and helps to develop good governance, so that the project is successful. Frequently, necessary political and structural reforms are initiated and advanced through transport projects.
KfW activities are guided by values: Humanity, responsibility, market economy, sustainability and tolerance are the yardsticks KfW Entwicklungsbank measures them against.
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