OP Agarwal The World Bank PDF
Preview OP Agarwal The World Bank
O.P. Agarwal The World Bank Three Phases of Financing • Conceptualization • DPR Prep • Project structuring • • Fares Appraisal • Preparation Property development • Advertising revenues • Additional taxes Construction • Owners funds Operations & Maintenance • TA grants • Venture capital • Equity • Operating costs • Loans • Debt servicing • Government grants • Renewals • Subordinate debt • Suppliers credit 2 Fares • How much of the operating cost do we recover from fares: Full cost (cid:137) Operating cost + Profit (cid:137) Operating cost (cid:137) < Operating cost (cid:137) • Situation varies from city to city • Depends on income levels • Political sensitivity – affordability issues 3 Examples • France/US – less than operating costs as employment tax/gasoline tax used to subsidize operating costs • Singapore – no operating subsidy • NUTP - Operating cost from fares • Basic questions What share must users pay (cid:137) Where do the bridging resources (cid:137) come from 4 Operating cost is a technical issue Fare is a public policy issue Reconciliation needed 5 Resources to bridge the gap • Employment tax - France • Gasoline tax - US Taxation • Land value capture • Vehicle Registration fee • Other dedicated taxes Revenues from demand restraint • measures Congestion charges • Parking charges • Exploit air rights over Commercial station buildings exploitation of • Exploit land specially land provided 6 Hong Kong Mass Transit Railway • In 2009 of a net profit of HK$7.3 billion, MTR made HK$3.55 billion from property and HK$2.12 billion from transport operations Other examples • San Francisco: Tolls on all bridges – $150 million in 2007 50% for structure works and bridge reinforcement (cid:137) 30% for bridge maintenance (cid:137) 20% for operating public transport (cid:137) • Annual Parking Revenues: $200 million in San Francisco (cid:137) About 8 million Euros in Montpellier and Nantes (cid:137) USA: Gasoline Tax • 18 cents/gallon - into highway trust fund • Federal Highway Program totaled Approx. $40 Billion in 2007 • Federal Transit Program Approx. $10 Billion in 2007 Additional Options • Advertisement Billboards (cid:137) On Buses, Trains, stations (cid:137) • Fee for operating rights Used for subsidy on loss making routes (cid:137) • Climate Funds CDM / Carbon Finance (cid:137) Clean Technology Fund (cid:137)
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