Transportation is a prerequisite for inclusive economic growth and competitiveness, as well as for trade, regional integration and employment generation. By facilitating the mobility and interconnectivity of people, efficient transportation systems can also effect social change, innovation and wealth creation.
However, before the sector can become a major driver of sustainable growth and development, many hurdles need to be overcome. These include lack of access to adequate transportation, bottlenecks resulting from rapid urbanization, ineffective service delivery and scarcity of funding.
OFID’s support to the transportation sector has been consistently high, with cumulative approvals amounting to around US$3,272.6m, or 21% of total commitments.
These funds have been utilized across all subsectors, including:
from roads, seaports and airports, to railways, inland waterways and urban mass transit. They have been channeled predominantly through the public sector, although the past decade has witnessed growing involvement in private sector initiatives.
In 2013, OFID approved US$249.2m, all in public sector lending, for 16 transportation projects in a range of subsectors. The majority of the commitments went to Africa (49.0%), followed by Emerging Europe (41.0%) Asia (17.0%) and LAC (8.0%).
The loans will help finance the following projects: