[rts] (Fwd) RTS-Discussion from dschelling@worldbank.org

[econf-ifrtd at gn.apc.org]

Dieter E. Schelling
10/26/2000 12:54 AM
Extn: 35722           AFTTR


To:   Rtslist at News.Gnapc.Org
cc:

Subject:  RTS-Discussion

Colleagues,

let me add a few points and questions to the discussion which might not
completely fit with this week's topic:

The Bank is increasingly financing community driven development projects where
funding is channeled directly to communities which decide themselves how they
will use these resources.  The rules of the game are that they have to
contribute a certain amount (mostly in kind), certain items are excluded
(negative list) or they select from a given list (positive list), the
communities have to form implementation committees, need to consider respective
sectorial policy frameworks, must ensure maintenance, etc.  Mostly items covered
are small scale irrigation, food storage, primary school building, health
centers, water supply systems, transport infrastructure, etc.  Purchase or
support of RTS and IMT  is normally not part of the menu.  Question:  Should
they be? If so, what should be recommended to communities regarding the use of
these funds (Buy a bus? Subsidize bicycles? Establish a credit line for IMT?
Does anyone know successful examples? Any ideas?

During a long stay in Tanzania I made the following observations regarding RTS:
I was in charge of a rural road rehabilitation project.  The day we completed
the rehabilitation of a road section, a bus (and sometimes two buses with
different owners) started operating.  These buses were often licensed to operate
in Dar es Salaam.  However, after the liberalization and abolishment of the
state transport monopoly competition in Dar became so fierce that buses looked
for rural routes and started operating.  Costs were (as I see it) relatively low
at about 2 US cents per passenger-km, thanks to the competitive environment.  I
always wondered what contributed to the relative success of rural passenger
transport in Tanzania.

During the economic crisis in the 80ties we imported about 1000 Chinese bicycles
(to Ifakara in Tanzania) and sold them for about 50 Dollars equivalent to our
workers who practically fought to buy these bicycles.  In those days bicycles
were simply not available due to the foreign exchange crisis.  Still generally
in Africa bicycles are too expensive at the price of around $ 80 a piece (in
Vietnam a bicycle can be bought for around $ 25).  Also in Dar es Salaam we
observed a manufacturer, who certainly never got any support, starting to
produce load-carrying tricyles.  These tricycles started to appear all over the
country.  I hope this became a success story.  We need more such stories and
need to find out "what went right" in order to hopefully duplicate them in other
places.

Regards

Dieter Schelling, Africa Transport, AFTTR
World Bank, 1818 H Street, N.W., Washington D.C. 20433, USA, , Room No. J-7047
Phone 202 473 5722; Fax 202 473 8326; e-mail: dschelling at worldbank.org



Dieter Schelling, Africa Transport, AFTTR
World Bank, 1818 H Street, N.W., Washington D.C. 20433, USA, , Room No. J-7047
Phone 202 473 5722; Fax 202 473 8326; e-mail: dschelling at worldbank.org