NAMA: Ethiopia Railway's Addis Ababa Light Rail Transit (LRT) Transit Oriented Development (TOD) NAMA
Title:
Ethiopia Railway's Addis Ababa Light Rail Transit (LRT) Transit Oriented Development (TOD) NAMA
DescriptionOfMitigationAction:
<p style="margin: 0.05pt 8.65pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> A main pillar of Ethiopia's Climate Resilient Green Growth (CRGE) strategy is to avoid emissions in the transport sector through a shift of freight and passenger transport from road to rail. The Ethiopian Railways Corporation (ERC) was set up in 2007 with the mandate to construct railway infrastructure and provide passenger and freight rail transport services in Ethiopia. The envisaged infrastructure consists of two railway project components: the Addis Ababa Light Rail Transit (LRT) and the National Railway Network (NRN). </span></p> <p style="margin-left: 5.25pt; line-height: 14pt; text-align: justify;"><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif;"> </span><span style="font-size: 12pt; line-height: normal; font-family: Calibri,sans-serif;">ERC intends to implement measures to increase ridership and revenue for its LRT. In collaboration with the City of Addis Ababa ERC plans to pilot Transit Oriented Development (TOD). TOD is an urban development concept, which promotes mixed-‐use public, residential and commercial areas, favouring non-‐motorized modes of transport. High-‐density urban development along the LRT will increase </span><span style="font-size: 12pt; line-height: normal; font-family: Calibri,sans-serif;">revenues through ticketing (enhanced ridership) and increase the value of land/leases, which will contribute to the sustainable operation of the LRT. </span><span style="font-size: 12pt; line-height: normal; letter-spacing: 0.7pt; font-family: Calibri,sans-serif;"> </span><span style="font-size: 12pt; line-height: normal; font-family: Calibri,sans-serif;"> Simultaneously TOD will directly (through avoidance of transport need as commercial and social activities are grouped within the TOD) and indirectly (increased LRT ridership as TOD residents will use LRT when transport is required) reduce GHG emissions in Addis Ababa. <br /> </span></p> <p style="margin-left: 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">TOD will increase transport safety, reduce pollution, lower costs of </span><span style="font-size: 12pt;">transport and provide easy access to work and business. ERC has <span style="font-size: 12pt; font-family: Calibri,sans-serif;">identified 10 stations along the LRT lines which are suitable for TOD.</span> </span><span style="font-size: 12pt; letter-spacing: 0.7pt;"> <br /> </span><span style="font-size: 12pt;"><br /> </span></p> <div style="text-align: justify;"><span style="font-size: 12pt;"> Knowledge, access to finance and gaps in the regulatory framework are the typical barriers to low carbon economic development in developing countries. These are also the most important barriers for the implementation of TOD in Addis Ababa. </span></div> <span style="font-size: 12pt;"> </span><span> <div style="text-align: justify;"><span style="font-size: 16px;"><br /> </span></div> <span style="font-size: 12pt;"> <div style="text-align: justify;"><span style="font-size: 12pt;"> Knowledge barrier: this will be the first TOD in Ethiopia. The project proponents are aware of the advantages of TOD, but lack practical knowledge and experience. This includes technical design issues in addition to issues related to organisation, finance and coordination. The NAMA will address amongst others the design of the pilots through the preparation of a bankable feasibility study, the regulatory frameworks and an operational cooperation structure. </span></div> </span> </span><span> <div style="text-align: justify;"><span style="font-size: 16px;"><br /> </span></div> <span style="font-size: 12pt;"> <div style="text-align: justify;"><span style="font-size: 12pt;"> Barrier due to finance and access to finance: investment in TOD requires investments by governmental actors and investments by private sector investors. Public sector investments include roads and other public infrastructure. Any of these must come from the public budget, which is limited. Investments in social housing estates and commercial property development for SMEs will be incentivised under the pilot TOD. The NAMA assists in the preparation of a structured debt fund to take away the risk for private sector investment for social housing and SMEs in particular and will prepare the conditions for public-‐private partnerships. </span><span style="font-size: 12pt; letter-spacing: 0.7pt;"> </span><span style="font-size: 12pt;"> </span></div> </span></span><span> <div style="text-align: justify;"><span style="font-size: 16px;"><br /> </span></div> <span style="font-size: 12pt;"> <div style="text-align: justify;"><span style="font-size: 12pt;"> Structured funds are loan funds that pool money from different investors with varying expectations of risk and return for a dedicated purpose. The pooled funds are organised into a capital stack with layers that represent different levels of risk and return expectations. Grants and low return contributions from the Government of Ethiopia will be positioned in the higher layers of the fund while commercial banks will take the lower risk positions in the fund. This will protect the banks’ investment and allows the fund to offer loans at low interest rates and high loan-‐to-‐value ratios compared to comparable commercial finance. </span><span style="font-size: 12pt; letter-spacing: 0.7pt;"> </span><span style="font-size: 12pt;"> </span></div> </span></span><span> <div style="text-align: justify;"><span style="font-size: 16px;"><br /> </span></div> <div style="text-align: justify;"><span style="font-size: 12pt;"> The Development Bank of Ethiopia in collaboration with the Ministry of Finance and Economic Development will take the lead in establishing the structured debt fund. <br /> </span><span style="font-size: 12pt; text-align: left; font-family: Calibri,sans-serif;"> <br /> Regulatory barrier: Establishing the TOD may also take place through </span><span style="font-size: 12pt; text-align: left; font-family: Calibri,sans-serif;">public-‐private partnership (PPP). Such co-‐development structures </span><span style="font-size: 12pt; text-align: left; font-family: Calibri,sans-serif;">are without precedent in Ethiopia. The NAMA addresses this barrier </span><span style="text-align: left; font-family: Calibri,sans-serif;"><span style="font-size: 12pt;">by preparing the needed regulatory frameworks.</span><br /> <div style="text-align: left;"><span style="font-size: 12pt; text-align: justify;"><br /> The implementation of the NAMA aims to take away these barriers, by increasing capacity, preparing a regulatory framework, developing knowledge and by lowering hurdles to private investment. International support is solicited to expedite this process, which will be implemented through the following activities:</span><em style="font-size: 12pt; text-align: justify;"><span style="font-size: 9.5pt; color: #3f403f;"> </span></em><span style="font-size: 12pt; text-align: justify;"> <br /> </span><em style="font-size: 12pt; text-align: justify;"><span style="font-size: 12pt;"><br /> A: Institutional framework established and operational for TOD </span></em><em style="font-size: 12pt; line-height: 14pt; text-align: justify;"><span style="font-size: 12pt; position: relative; top: -0.5pt;">implementation </span></em><span style="text-align: justify; position: relative; top: -0.5pt; color: #3f403f;"><span style="font-size: 12pt; line-height: 14pt;"> </span><span style="font-size: 12pt; line-height: 14pt; letter-spacing: 0.7pt;"> </span><span style="font-size: 12pt; line-height: 14pt;"> </span><span style="line-height: 18.6667px; font-size: 16px;"><br /> </span></span><span style="font-size: 9.5pt; text-align: justify; color: #3f403f;"> • <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt; text-align: justify;"><span style="font-size: 12pt; color: black;">A.1 Stakeholder consultation process to concretize roles, </span></em><em style="text-align: justify; font-size: 12pt;"><span style="font-size: 12pt;">responsibilities and mandates of implementing partners.</span></em><em style="text-align: justify;"><span style="font-size: 9.5pt; color: #3f403f;"> </span><br /> <div style="text-indent: 0px;"><span style="font-size: 9.5pt; font-style: normal; text-indent: -0.25in; color: #3f403f;"> •</span><span style="font-size: 12pt; font-style: normal; text-indent: -0.25in; color: #676767;"> </span><em style="color: #676767; font-size: 12pt; text-indent: -0.25in;"><span style="font-size: 12pt; color: black;">A.2 Formulation and execution of Memoranda of Understanding between TOD implementing partners.</span></em><em style="text-indent: -0.25in;"><span style="font-size: 9.5pt; color: #3f403f;"> </span><br /> <div style="text-indent: -24px;"><em style="color: #676767; font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <div style="text-indent: 0px; display: inline ! important;"><span style="font-style: normal; font-size: 9.5pt;"> • <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt; color: #676767;"><span style="font-size: 12pt; color: black;">A.3 Capacity building for TOD implementation. (TOD, MRV, </span></em></div> </span></em><em style="color: #676767; font-size: 12pt;"><span style="font-size: 12pt;">structured fund related)</span></em><em style="color: #676767; font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> </span></em><span style="font-size: 9.5pt; line-height: 14pt; font-style: normal; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="color: #676767; font-size: 12pt; line-height: 14pt;"><span style="font-size: 12pt; color: black;">A.4 Establishment of a Project Implementation Unit</span></em><em><span style="color: #3f403f;"><span style="font-size: 9.5pt; line-height: 14pt;"> </span><span style="line-height: 18.6667px; font-size: 13px;"><br /> </span></span></em><em><br /> <br /> <span style="font-size: 12pt;"> B: TOD regulatory framework established </span><span style="font-size: 16px;"><br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.1 Consultations with implementing partners</span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.2 Assessment of existing policies and gap analysis.</span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="text-indent: -0.25in; font-style: normal; font-size: 9.5pt; color: #3f403f;">•</span><span style="text-indent: -0.25in; font-size: 12pt; font-style: normal;"> </span><em style="text-indent: -0.25in; font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.3 Incorporation of TOD in National Transport Policy, AA Urban Transport Policy and AA Urban Master Plan</span></em><em style="text-indent: -0.25in; font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.4 Formulation and update of TOD related policies and </span></em><em style="font-size: 12pt;"><span style="font-size: 12pt;">regulations, including land and tax regulations, </span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.5 Development of TOD zoning <span style="letter-spacing: 0.7pt;"> </span> </span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="text-indent: -0.25in; font-style: normal; font-size: 9.5pt; color: #3f403f;">•</span><span style="text-indent: -0.25in; font-style: normal; font-size: 9.5pt; color: #3f403f;"> </span><em style="text-indent: -0.25in; font-size: 12pt;"><span style="font-size: 12pt; color: black;">B.6 Formulation of legal framework for Public Private Partnerships</span></em><em style="text-indent: -0.25in;"><span style="color: #3f403f;"><span style="font-size: 9.5pt;"> </span><span style="font-size: 13px;"><br /> </span></span></em><em style="font-size: 12pt;"><span style="font-size: 12pt;"><br /> C: Detailed TOD implementation plan for 10 station of the Addis Ababa Light Rail Transit in line with the ERC bankable feasibility study ToR attached. </span></em><span style="font-style: normal; color: #3f403f;"> <span style="font-size: 12pt; letter-spacing: 0.7pt;"> </span><span style="font-size: 12pt;"> </span><span style="font-size: 16px;"><br /> </span></span><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">C.1: Preparation of urban design plan </span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">C.2: Preparation of technical design studies </span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">C.3: Preparation of detailed market studies and development </span></em><em style="font-size: 12pt;"><span style="font-size: 12pt;">prospectus</span></em><em style="font-size: 12pt;"> </em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <br /> </span></em><span style="line-height: 14pt; font-style: normal; font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em style="line-height: 14pt; font-size: 12pt;"><span style="font-size: 12pt; color: black;">C.4: Preparation of Environmental Impact Assessment studies</span></em><em><span style="color: #3f403f;"><span style="font-size: 9.5pt; line-height: 14pt;"> </span><span style="line-height: 18.6667px; font-size: 13px;"><br /> </span></span></em><em><br /> <span style="font-size: 12pt;"> D: Structured debt fund is designed </span><span style="font-size: 12pt; letter-spacing: 0.7pt;"> </span><span style="font-size: 12pt;"> </span><span style="font-size: 16px;"><br /> </span></em><span style="font-style: normal; font-size: 9.5pt; color: #3f403f;"> • <span style="letter-spacing: 0.55pt;"> </span></span><em style="font-size: 12pt;"><span style="font-size: 12pt; color: black;">D.1 Preparing detailed concept of structured fund </span></em><em style="font-size: 12pt;"><span style="font-size: 9.5pt; color: #3f403f;"> <span style="letter-spacing: 0.55pt;"> </span> <br /> <br /> <p style="margin-left: 5.25pt; line-height: 14pt;"><em><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif;"> E: MRV system developed</span></em><span style="font-size: 12pt; position: relative; top: -0.5pt; font-family: Calibri,sans-serif; color: #3f403f;"> </span> </p> <p style="margin: 3.35pt 0in 0.0001pt 23.25pt;"><span style="font-size: 9.5pt; color: #3f403f;">• <span style="letter-spacing: 0.55pt;"> </span></span><em><span style="font-size: 12pt; font-family: Calibri,sans-serif; color: black;">E.1Surveys and baseline studies</span></em><em><span style="font-size: 9.5pt; font-family: Calibri,sans-serif; color: #3f403f;"> </span></em> </p> <span style="font-size: 9.5pt; font-family: 'Times New Roman',serif; color: #3f403f;"> • <span style="letter-spacing: 0.55pt;"> </span></span><em><span style="font-size: 12pt; font-family: Calibri,sans-serif; color: black;">E.2 Preparation of MRV system</span><span style="font-size: 9.5pt; font-family: Calibri,sans-serif; color: #3f403f;"> </span></em><br /> </span></em></div> </em></div> </em></div> </span></div> </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> <span style="font-size: 9.5pt; font-family: Calibri,sans-serif;"><br clear="all" style="page-break-before: always;" /> </span><br clear="all" style="page-break-before: always;" /> </span><br clear="all" style="page-break-before: always;" /> </span>
EntityName:
Ethiopian Railway Corporation (ERC)
EntityName1:
EntityName2:
EntityAddress1:
P.O.Box 27558/1000 Addis Ababa, Ethiopia ||
EntityAddress2:
||
EntityAddress3:
||
EntityContactPerson1:
Mr. Shewangizaw Kifle ||
EntityContactPerson2:
||
EntityContactPerson3:
||
EntityContactPerson1Alternate:
EntityContactPerson2Alternate:
EntityContactPerson3Alternate:
EntityPhone1:
00251 911 226 816 or 00251 114 70-21-90 ||
EntityPhone2:
||
EntityPhone3:
||
EntityPhone1Alternate:
EntityPhone2Alternate:
EntityPhone3Alternate:
EntityEmail1:
kidusshk@gmail.com||
EntityEmail2:
||
EntityEmail3:
||
EntityEmail1Alternate:
EntityEmail2Alternate:
EntityEmail3Alternate:
YearsForCompletion:
18
UsedCurrency:
USD
AmountOfFinancialSupport:
7700000
CommentsOnFinancialSupport:
<span style="font-size: 12pt; font-family: Calibri,sans-serif;">The Government of Ethiopia through ERC will provide co-‐fundin<span style="letter-spacing: -0.05pt;">g</span> of USD 1,200,000 for the purpose of the preparation of the bankable feasibility study. </span>
AmountOfTechnicalSupport:
CommentsOnTechnicalSupport:
Included in financial support requested. <br />
AmountOfCapacityBuildingSupportText:
AmountOfCapacityBuildingSupportChoice:
selected currency
CommentsOnCapacityBuildingSupport:
Included in financial support requested.
FinancialSupportRequired:
Yes
TechnologicalSupportRequired:
Yes
CapacityBuildingSupportRequired:
Yes
OtherNAMA:
Ethiopia's National Railway Network and Addis Ababa Light Rail Transit (LRT) NAMA
UNParty:
Ethiopia
CoveredGreenhouseGases:
CO2
AttachmentDescription:
Item Status:
Published
NAMADeveloper:
ext\atsibha
NAMAApprover:
ext\atsibha
SecretariatNAMAAssignVerifier:
unfccc\nama-av
SecretariatNAMAVerifier:
unfccc\forner
Publishing date:
12/18/2014
NAMAId:
NS-167
ConversionRate:
GeneralComments:
-
SectorNSSP:
Residential and Commercial buildings; Transport and its Infrastructure
TechnologyNSSP:
Rail way / Pedestrian friendly urban development
TypeOfActionNSSP:
Project: Investment in infrastructure
EstimatedFullCostOfPreparation:
8900000
TypeOfRequiredFinancialSupportNSSP:
Grant
TypeOfRequiredCapacityBuildingSupportNSSP:
RelevantNationalPolicies:
<p style="margin: 0in 0.55pt 0.0001pt 5.25pt;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">Ethiopia has taken on the ambition to capitalise on its rapid economic growth by investing in an economy that is more resilient to the impacts of climate change and pursue low carbon development. The Government of Ethiopia has adopted the Growth and Transformation Plan (GTP), which outlines the country’s strategy to reach middle-‐income status before 2025. At the same time, the Government has issued the Climate-‐Resilient Green Economy (CRGE) strategy in 2011, which lays down the country’s plan to develop a carbon neutral, green economy by 2025. Provision of an affordable and efficient transport system will make a crucial contribution to economic growth, employment creation, social welfare and the expansion of the industrial sector. Estimated GDP growth of 8.5% in</span><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> 2012 made Ethiopia one of Africa's best performing economies and the country is expected to continue to represent one of the world’s fastest growing economies in the years to come. TOD provisions are furthermore being incorporated in the Addis Ababa City Master Plan.</span></p>
CommentsOnFullCost:
<p style="margin: 0.05pt 15.3pt 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;">It </span><span style="font-size: 12pt; font-family: Calibri,sans-serif;">is expected that the activities C1 – C3 will cost ~ USD 5,000,000. This is based on initial quotes being provided to ERC by shortlisted consultants. </span></p> <p style="margin: 0in 4.7in 0.0001pt 5.25pt; text-align: justify;"><span style="font-size: 12pt; font-family: Calibri,sans-serif;"> </span> </p> <span style="font-size: 12pt; font-family: Calibri,sans-serif;">The other activities requested to be supported are expected to cost USD 3,900,000, based on expected professional fees. </span>
Approval Status:
Approved
Created at 12/18/2014 8:17 AM by Vladislav Marinov
Last modified at 8/28/2015 3:55 PM by System Account
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