PROJECT DEVELOPMENT FACILITY REQUEST FOR PIPELINE ENTRY AND PDF BLOCK B APPROVAL

AGENCY’S PROJECT ID: 3276 FINANCING PLAN (US$) GEFSEC PROJECT ID: GEF ALLOCATION COUNTRY: South Africa Project (estimated) 11,000,000 PROJECT TITLE: Sustainable Public Transport Project Co-financing 19,000,000 and Sport, a 2010 Opportunity (estimated) GEF AGENCY: UNDP OTHER EXECUTING AGENCY(IES): South African PDF B 197,313 Department of Transport (DoT) Sub-Total GEF PDF 197,313 DURATION: 8 months PDF CO-FINANCING (details provided in GEF FOCAL AREA: Pipeline Entry and PDF Block Part II, Section E – Budget)GEF BClimate Change AgencyNational GEF OPERATIONAL PROGRAM: OP 11 Contribution178,000Others (in- GEF STRATEGIC PRIORITY: CC-6 kind)Sub-Total PDF Co- ESTIMATED STARTING DATE: 1 Jan 2005 financing:178,000Total PDF Project ESTIMATED WP ENTRY DATE: PIPELINE ENTRY AND Financing:375,313 PDF BLOCK BNOV 2005 PIPELINE ENTRY DATE: Oct 2004

RECORD OF ENDORSEMENT ON BEHALF OF THE GOVERNMENT: Dr. Crispian Olver, GEF Focal Point, Date: endorsement is expected before Oct 8. South African Government Department of Environmental Affairs and Tourism

This proposal has been prepared in accordance with GEF policies and procedures and meets the standards of the GEF Project Review Criteria for Pipeline Entry and PDF Block B approval.

Project Contact Person: Yannic Glemarec Martin Krause, UNDP-GEF Deputy Executive Coordinator [email protected] Tel: +27 12 354 8125 Date: 6 October 2004 Madeleine Costanza, DoT October 2004 1 Tel: + 27-72-425-8859 [email protected] PART I - PROJECT CONCEPT

A - SUMMARY

The proposed project focuses on urban passenger transportation. Passenger transport is a generic term used to describe both public and private modes of travel for all purposes, whether commuting or other business-related travel, shopping, tourism, recreational and casual travel.

One of the most serious legacies of apartheid is a warped pattern of land use, with lower-income, primarily black, residents living far from the town centres and other employment nodes in either townships or ex-homelands. On the other hand, it created excellent urban road networks, especially to serve the wealthier, primarily white, suburbs. The combination of these two factors has created a powerful momentum for increasing car use by middle and higher-income groups. As incomes amongst all races rise in South Africa, private car use is anticipated to likewise rise over the next decades, while many, especially lower-income groups, will still lack basic access to an affordable (public) transport system. Designed to serve the historic land-use and urban transportation patterns mentioned above, the current public transportation system does not meet customer needs in terms of travel time, level of choice, quality of service and cost, while public transportation planning, operation and regulation can be characterized as poor.

In the business-as-usual scenario, the above-described vicious circle of reduction in public transport quality and accesibility, increase in car use and car population and increasing spatial dispersal of housing in peri-urban areas, will continue. Increased car use will lead to increased greenhouse gas emissions. The intervention strategy of the project would be to address the policy, institutional, financial, information and technological barriers and to provide an effective, sustainable and environment-friendly urban public transport system, planned and regulated at local levels of government. The South African Department of Transport (DoT) now intends to use the World Cup planning window as a catalyst for change to achieve fundamental, appropriate improvements to the South African public transport system. Thus, the practical demonstration of urban transport improvement measures will be linked to substantial changes in the design of stadia in the selected venue cities of the 2010 FIFA World Cup and in the transport services that provide access to these venues.

The DoT proposes the use of GEF PDF1 funds to elaborate city-level sustainable transportation plans not only to serve the transport requirements of the World Cup events, but also to leave a lasting legacy of enhanced sustainable transport behind after the events, thus contributing to a long-term mitigation of greenhouse gas emissions from the transport sector.

The central focus of the main project will be to support both the re-design of spectator access to stadia (eliminate mass private vehicle parking) and the provision of public transport services and non- motorised transport infrastructure to the stadia in two selected 2010 host cities. Furthermore, the project will work with other 2010 host cities and selected municipalities across the country to influence transportation policies, build institutional and individual capacities and raise awareness.

The environment objective is to reduce greenhouse gases (GHG) from urban transportion in South African cities through the promotion of a long-term modal shift to more efficient and less polluting forms of transport, and the adoption of sustainable low-GHG transport technologies.

1 Project Preparation and Development Facility

October 2004 2 The development objective is the promotion of a safe, reliable, efficient, co-ordinated and integrated urban passenger system in South African, managed in an accountable way to ensure that people experience improving levels of mobility and accessibility.

The project builds on several years of policy development and new planning requirements in the transport and environmental management sectors. In addition to technical planning support to stadia modification, the project will also have complementary outputs that integrate sustainability issues more firmly into the public and private spheres of perception and action. The project will develop support plans to local public transport management, enhance information and awareness building amongst the general public and consolidate data development, monitoring and evaluation in terms of greenhouse gas emissions and environmental management in the broader land passenger transport sector in South Africa. This project thereby enables opportunities for alternative transport fuels and technologies to be applied.

Due to its close complementary linkage with South Africa’s preparation for the FIFA 2010 Soccer World Cup, the project benefits from substantial political leverage and a strong governmental commitment in terms of co-financing. Fundamentally, it presents an excellent opportunity to influence infrastructure and service management with emissions consequences for decades to come. Only few transportation projects offer the kind of long-term reliability of emissions mitigation that this project entails, and GEF engagement in the public transport sector is likely to spark related attention to emissions mitigation in the country's freight logistics sector.

B - COUNTRY OWNERSHIP

B.1 COUNTRY ELIGIBILITY

South Africa is a signatory to the United Nations Framework Convention on Climate Change (UNFCCC) and ratified it in 1997. It is expected that one of the outcomes of this project will be indications on transport-linked mitigation options that can be situated within the existing national level development plan and priorities. National endorsement by the GEF Focal Point, the South African Department of Environment Affairs and Tourism (DEAT), has been obtained (see Annex A).

B.2 COUNTRY DRIVENNESS

The South African government priority for concepts of sustainable transport (defined as public transport and non-motorised transport) is most clearly stated in a series of policy documents including Moving South Africa, the draft National Energy Efficiency Strategy, the draft National Vehicle Emissions Strategy, the White Paper on Energy and the National Land Transport Transition Act (NLTTA), which governs passenger transport in South Africa.

The project concept also links into a growing array of transportation planning requirements, including the establishment and updating of a local and provincial Integrated Transport Plan (ITP), one aspect of municipal Integrated Development Plans (IDPs), also required by law. These documents are developed at local and provincial levels by the relevant authorities, and require extensive public consultation. The NLTTA also makes provision for the establishment of "Transport Authorities", legal entities that address all modes and sectors of transport requirements in a metropolitan area, and integrate all considerations, including safety, security, environmental impact, and in future such opportunities as carbon finance as a revenue stream or financial liability.

These strategies serve as underpinning policies for the practical objectives of the proposed project. The integration of global environmental considerations as a cognisant aspect of transportation

October 2004 3 management is a long-term objective of the Department of Transport (DoT). In this respect, DoT proposes the use of PDF funds to support urban transportation and land-use planning that emphasises the role of public and non-motorised transportation over private car transportation.

South Africa is very excited to be awarded the opportunity to host the FIFA World Cup in 2010. The Government has made it clear that it will take its lead role in the preparation of this event very seriously, particularly given the substantial legal guarantees that FIFA requires. The events offer a showcase of South Africa as a tourist destination, and a measure of South African industry capabilities. There is an unprecedented drive to take up this challenge, to succeed in realising these opportunities, and to use the World Cup Events to focus delivery in many sectors, including sustainable transport and environmental management. The DoT has embarked on a phased project to significantly improve public transport and co-ordinate planning for all layers of transportation services, infrastructure and management that will serve the 2010 FIFA World Cup and beyond. DoT recognises the fundamental role of smoothly working transportation services for the success of such a large event.

In this respect, DoT proposes the use of PDF funds to elaborate and acquire GEF support to develop business plans for implementing significant changes with respect to the role of public and non- motorised transportation in the design of at least two stadia and in the transport services that provide access to these venues. The DoT has already held broad consultations for World Cup transportation co-ordination, which have included discussion of the GEF project concept for support to stadia re- design. The DoT will present its public transport and World Cup strategy to the World Cup 2010 Local Organising Committee in January 2005, and use the period January - June 2005 to refine implementation plans. The PDF grant would be used to elaborate a full-sized project proposal in this same time frame, for implementation beginning the end of 2005.

The White Paper on National Transport Policy aims to achieve sustainable development in the transport sector by minimising the energy usage and environmental impact of the transport sector. The White Paper promotes the use of more energy efficient and less polluting modes of transport.

C – PROGRAM AND POLICY CONFORMITY

C.1 PROGRAM DESIGNATION AND CONFORMITY

As discussed in the previous paragraph, sustainable transportation (including modal shift to public transportation, non-motorised transport and alternative technologies) forms a priority area of the Government. The project fits into the GEF Focal Area of Climate Change. It addresses “Operational Programme 11, Sustainable Transport”. The project will be designed to complement the priorities and development objectives of the Government at national and local level. In particular, the project will focus on the “GEF Strategic Priority CC-6, Modal Shifts in Urban Transport and Clean Vehicle/Fuel Technologies”, emphasising public transportation (buses and taxi buses), non-motorised transport (such as bicycles and pedestrian lanes) and policy measures (public transport planning, operation and investment).

South Africa’s Initial National Communications gives an indication of the potential greenhouse gas emission reduction due to measures in the transportation sector. It is estimated that promoting the use of public transportation and mode switching from private car use could potentially reduce emissions from passenger vehicles by 25%, about 75 million tonnes of CO 2, between 2000 and 2030. Complemented with long-term modal shifts , the global environmental impacts of green technology options (such as LPG, CNG, electric or hybrid cars and biological fuels) could potentially reduce passenger vehicle emissions by 35%.

October 2004 4 C.2 PROJECT DESIGN

Problem Statement:

Historic land-use patterns determine the distance that many urban South Africans live from employment and services. One of the most serious legacies of apartheid is a warped pattern of land use, with lower-income, primarily black residents living very distant from the town centres and other employment nodes in either townships or ex-homelands. On the other hand, it created excellent urban road networks, especially to serve the wealthier, primarily white, suburbs. While congestion problems become more noticeable, there is an excellent infrastructure for the country’s urban drivers, and urban suburbs have approximately 75-80% of their road spending needs met2.

The combination of these two factors has created a powerful momentum for increasing car use by middle and higher-income groups, as incomes will rise over the next decades, while many, especially lower-income groups, will still lack basic access to an affordable (public) transport system. To illustrate this, the average public transport trip in South Africa is 20 km, which is 9 km longer than the average trip in developing Asian countries; so the South African commuter spends almost 40% more travelling time than their Asian counterparts. Reducing trip distance would not only save time, but have a dramatic impact on the passenger’s fare expenditure.

The current public transportation system does not meet customer needs in terms of travel time, level of choice, quality of service and cost. More than 63% of the working population rely on public or non-motorised transportation. However, when customers were interviewed2, almost 50% expressed dissatisfaction with travel times and only 10% had a choice between travel modes (walking, minibus taxi, bus, commuter rail and car).

Designed to serve the historic land-use and urban transportation patterns mentioned above, public transportation planning, operation and regulation can be characterised as poor. If not improved, this management system will exacerbate the poor public transport services in the years to come. Part of the problem derives from:

 Current land-use and development initiatives are exacerbating the legacy of apartheid planning, by locating new houses in places where land prices are lowest, far from the major business centres (and thus far from rail and road networks);  Unclear and fragmented institutional arrangements regarding transportation and land-use planning;  Lack of financial sustainability of the public transportation sector; currently commuter rail, bus and taxi expenditures are all spending well below the levels needed to maintain and upgrade their assets;  Ineffectiveness of current subsidy targeting. Minibus taxis, most accessible to most of the poor, do not receive any subsidy at all; commuter rail and longer-distance buses are subsidised but offer limited off-peak service, while 20% of the bus subsidies go to higher-income suburbs; and  Little awareness and capacity amongst transport planners and regulators on urban transportation and its integration with transportation management and road infrastructure.

Business-As-Usual:

2 Moving South Africa (DoT, 1999)

October 2004 5 In the business-as-usual scenario, the above-described vicious circle of reduction in public transport quality and accesibility, of increase in car use and car population and of increasing spatial dispersal of housing in peri-urban areas, will continue. This cycle will have adverse impacts, in socio-economic terms (reduced access to employment, basic services in the centres, less social integration and higher spending of the poor on transportation cost) and environmental terms (congestion, pollution and greenhouse gas emissions as a consequence of increased car dependence).

Currently, some 13% of the urban population has no affordable basic access to the motorised transport they need (and is expected to grow to 28% in 2020 if nothing is done to address their needs), while an additional 20-30% do have access but are ‘captive’ to expensive options, limited choice and relative high income expenditure on transportation3. According to the survey, 35% of the urban population can afford a car, but will be only willing to use public transport if it meets their goal of convenience, higher speed and greater choice4. This segment is expected to grow to 40% by the year 2020.

South African stadium design has largely followed the North American model, with large stadia built on the periphery of cities, surrounded by thousands of parking spaces, perpetuating a reliance on private car mobility. This model misses the chance to enhance the financial sustainability of public transport systems, minimise localised and global emissions resulting from spectator mobility, and value the space in terms of its relationship to the community. In the post 9/11 era, the model also compromises safety and security by allowing for tens of thousands of potentially dangerous vehicles to access and park close to crowded stadia.

The Department of Transport (DoT) recognises the fundamental role of smoothly working transportation services for the success of a large international event such as the FIFA World Cup. Travel demand profiles anticipate approximately 300,000 international visitors for the events, as well as a similar level of local spectators. In addition to highly focused spectator travel surges, the venue cities selected will be faced with the requirements of general transportation management for the duration of the games.

As the system had originally been built to cater to private car users, there is little or no incentive for the stadia owners - often the cities themselves - to undertake such a major change to the existing mode of operation. Without a targeted project intervention supported by GEF, South African sporting venues will continue to encourage and accommodate the use of private vehicles as the main means of transport for spectators to the FIFA World Cup 2010 and beyond.

Transport of people and goods is an essential social and economic service and, in South Africa, accounts for about 24% of total energy consumption. More than 90% of transport energy is derived from liquid fossil fuels. At present the transport sector accounts for about one tenth of South Africa’s greenhouse gas emissions. However, it is understood to be the fastest rising source of greenhouse gas emissions in South Africa, as well as the rest of Africa. The South African Department of Minerals and Energy estimates that the average annual growth rate of fuel consumption will be 2.1 % for petrol and 2.4% for diesel, and that the estimated national car fleet will grow by 64 % between 1996 and 2020. The projected increase in the transportation sector will be influenced by changes in economic growth and the growth of the population. In addition, it is partly due to the lack of an efficient and effective public transportation system and financial incentives, such as company cars and car allowances, that make the use of cars relatively cheap, and due to the current land planning practices

3 Moving South Africa (DoT, 1999) 4 Some 15% will never use public transportation, as cost is a minor issue and urban road network in cities and adjacent suburbs is excellent

October 2004 6 to locate cheaper housing developments on the periphery of the urban centres and commercial development in the suburbs.

GEF Intervention / Sustainable Transport Alternative:

The GEF-supported alternative would be to provide an effective, sustainable and environment- friendly urban public transport system, planned and regulated at local levels of government. To make this vision reality, the intervention strategy of the project is designed around the following four components:

1. Policy: Effective sustainable urban transportation planning and regulation (integrated with urban and land-use planning at the provincial and municipal level); 2. Technology Demonstration: Potential integration of alternative transport technology in urban transportation (electric car, hybrid technology, liquefied petroleum gas, compressed natural gas, and biological fuels); and 3. Stadia Redesign: Promotion of a modal shift from private car use to less carbon-intensive modes of transportation, such as public transportation (mini-bus, bus and rail) and non-motorised transport (walking and cycling), by using the 2010 FIFA events as a catalyst to demonstrate the envisioned transport transformation; 4. Capacity and Awareness: Capacity-building, training and awareness creation for reducing uncertainties amongst planners and the public at large about costs, performance, and benefits of sustainable transport policies and options, as well as for strengthening local capabilities and institutions to operate, manage, finance and evaluate eligible sustainable transport strategies and measures.

The graph on the next page shows the 4 components and their connections. The immediate focus of attention of the project is 2 stadia/cities which will be selected during the PDF B out of the nine host cities. Component 3 focuses on these stadia/cities. Around that inner circle of attention is a circle which comprises the other 7 cities. These will be included in some of the project activities particularly with regard to capacity building, awareness raising and policy dialogue. The last circle contains other municipalities that have a progressive transportation strategy and wish to collaborate with the project. The work at the policy level, the technology demonstration, awareness campaigns and capacity building are activities that cut across the three circles meaning they will be carried out at all 3 levels of attention.

October 2004 7 2 venue cities/ stadia

Other 7 venue cities/ stadia Compon entCompon 1: Policyent 1: Policy Other selected Compone cities ntCompone 2: Technolont 2: gyDemonTechnolo strat.gyDemon strat.

Component 3 Compon entCompon 4: Capacityent 4: BuildingCapacity Building

Compon entCompon 4: Awareneent 4: ssAwarene raisingss raising

Each of the 4 components contains a combination of activities as described below:

I. Policy: Sustainable urban transportation strategies and planning

GEF support at the policy level is needed to work with selected municipalities and transportation authorities to include alternative transportation options in their plans and strategies and derive implementable action plans. The selection would comprise 2010 venue cities and other progressive municipalities. In addition, this component would include support for policy makers at the national and provincial level. A focus of this component would be to assist in improving the coordination between the various government departments involved and various layers of government.

Under this component strategic interventions around the following issues are foreseen:

 Since historic land-use patterns are the single greatest driver of the poor performance of the urban transport system, any solution has to be linked with urban spatial planning. One option, suggested

October 2004 8 in the Moving South Africa study is the creation of ‘corridors’ between the current townships (typically located 20 km from an urban centre) and the commercial centres. The aim would be to build density in the system by new settlements along corridors, making it cheaper to built infrastructure as well as public services. Transportation routes could be implemented along corridors at much lower cost;  Increased public transport infrastructure investment that focuses on corridor development (improving or building rail and bus infrastructure along corridors and paving feeder roads for service into corridors);  Tailoring the planning and operation of public transportation services to the different needs and priorities of various customer segments, and managing road space in such way that an optimum balance between public transport and car users is achieved with integration through intermodal transfers and multimodal facilities;  Targeting subsidies in such a way that affordable access is provided for lower-income groups and that an optimal use on corridor and feeder services is supported. Also, capital cost rather than fleet operating cost is subsidised, enabling operators to upgrade equipment, while providing a better service with less need for maintenance and risk of accidents; and  The latter is linked with measures to improve the company-level performance of the operators, such as formalisation of minibus taxis, performance-based tendering for taxis and buses on subsidised routes and introduction of greater efficiency in the commuter rail system.

II. Technology Demonstration: Integration of alternative transport technologies in urban transportation

The fact that much urban public transport infrastructure needs to be upgraded or expanded, offers the opportunity to incorporate new technologies from the onset. For example, when the bus fleet is expanded, one could opt for introducing natural gas vehicles (NGV). The World Cup events could be utilised to showcase NGV buses and other innovative transport technologies.

There is a clear need, however, to study the feasibility and longer-term implications of advanced vehicle technology (electricity, fuel cell, hybrid, CNG) and alternative fuel (CNG, LPG, biomass- derived) as well as non-motorised forms of transport (walking, cycling) that could be used as a complementary measure to the modal shift in transportation.

III. Stadia Redesign: Promotion of modal shifts from private car use to less carbon-intensive modes of transportation (public and non-motorised), using the World Cup 2010 events as a catalyst

With respect to the sporting venues of World Cup 2010, the Minister is championing a complete long-term overhaul of the country's public transport system, and intends to use the 2010 FIFA events as a catalyst for public transportation and logistics to accommodate a substantial portion of the surge in travel demand during the events achieve a substantial portion of the envisioned transport transformation, as described above, in at least two venue cities. The overhaul intends not to achieve a London or Tokyo level of service, but an appropriate, safe, affordable, and reliable service that will carry people of all income levels well into the future.

Currently, both existing and planned new stadia are surrounded by hectares of private vehicle parking, discouraging sustainable transport use and undercutting the financial sustainability of those public transport services that serve the venues. The project concept is therefore to modify the design of these stadia, restrict or exclude private vehicle parking for spectators, and provide planning support

October 2004 9 for a transition to exclusive public transport and non-motorised transport access for spectators. A band of pedestrian-only green space surrounding the stadia will be foreseen to serve as desperately needed community greenspace for nearby townships.

A GEF grant assisting this effort in conjunction with preparation for the FIFA World Cup would be a very targeted and long-reaching incentive to change, within the context of larger efforts to build a reliable, affordable, pleasant and safe public transport, the transport system in the selected South African cities. Activities would include the identification, feasibility analysis and prioritisation of infrastructural improvements and transport and traffic management options with respect to low- carbon modes of transportation in the venue cities, formulation of action plans as well as intensive consultation with stakeholders and public consultation. Another activity would be monitoring and evaluation of the sustainable transport strategy and formulation of a replication strategy.

IV. Capacity-building, training and awareness creation

A fourth component would focus on capacity-building, training and awareness creation for reducing uncertainties amongst planners and the public at large about costs, performance, and benefits of sustainable transport policies and options, and for strengthening local capabilities and institutions to operate, manage, finance and evaluate eligible sustainable transport strategies and measures. Such measures could also include institutional strengthening to adopt supportive regulatory frameworks for sustainable transportation at the provincial and local levels. Special attention would be given to the integration of small enterprises, such as minibus taxi operators, into the formal transport system and their empowerment through training courses. A greater awareness will be fostered through public awareness campaigns on sustainable transport measures, especially before and during the World Cup events. Another activity would focus on capacity building for local governance and community empowerment with respect to local transport facilities planning and decision-making.

The following table describes in some more detail the anticipated intervention strategy including the links to the barriers:

October 2004 10 GEF alternative ( outcomes and main activities of Barriers (baseline) full-scale project) Outcome I (Policy): Effective sustainable urban transport 1. Lack of an urban planning at local level and provincial levels traffic and Activity: transportation strategy I.a Working with selected national and urban transportation and regulatory planning authorities preferably in the nine 2010 venue framework that cities but also with other progressive municipalities to incorporates introduce less carbon-intensive and more accessible considerations on transportation in urban areas public transportation  Preparation studies for public transportation (route planning, bus (public transportation, non-motorised), e.g. corridors, non- o Transport and land-use planning motorised) as a mass (transport corridors and bus routes, integration of transit system that intermodal and multimodal transfer facilities) gives access to lower- o Economics of transport modal shift income groups and as service mix (road space management, accessibility, a viable option for car travel time and affordability, tailoring transport users. Part of this solutions to customer market segment and targeting barrier derives from subsidies accordingly) unclear and o Improve performance of transport fragmented companies (formalization of taxi operators, institutional performance-based tendering for taxis and buses on arrangements. subsidised routes) o Innovative financing for the implementation of urban sustainable transport plans  Study on institutional aspects (coordination between departments horizontally and between layers of government (local, provincial, national)  Design of sustainable urban transportation plans in selected municipalities by the responsible ‘transport authorities’, integrated with post-apartheid land-use planning (focusing infrastructure investment to support corridor development, especially to improve roads and dedicated road-based public transport, such as busways)

Outcome II (Technology Demonstration): Integration of 2. South Africa’s alternative (green) transport technology in urban economy is dominated transportation

October 2004 11 GEF alternative ( outcomes and main activities of Barriers (baseline) full-scale project) by fossil fuels (coal, Activity: oil) and little attention II.a Study on the strategy of integrating the most promising is given in energy and green options (identified in PDF B) into the expanding transport planning to and growing public transportation, such as climate less carbon-intensive friendly, alternative fuel buses or the use of biomass- fuel and technology derived fuels (feasibility analysis, environmental options impacts, recommendations) II.b Explore the feasibility of a pilot technology demonstration at one selected venue.

Outcome III (Stadia Redesign): Promotion of modal shifts 3. There is from private car use to less carbon-intensive modes of insufficient investment transportation (public and non-motorised), using the World in public Cup 2010 events as a catalyst transportation Activity: infrastructure. Thus, III.a Strategy on the promotion of public and non-motorised many citizens lack transportation modes in the World Cup 2010 venues affordable basic cities (stadia, green spaces) access to the public  Assessment and prioritisation of options transport system. The o Design of physical improvements of the current system venues (sports stadia and green spaces were the (minibus taxis, bus events will be broadcasted) and commuter trains) o Design of infrastructural improvements in the does not meet selected cities where the venues take place (to consumer needs in promote public and non-motorised transport as terms of choice and well as showcase green transport technology) access, travel time o Public transport planning and traffic and cost. management  Design of action plans (including financing options and tools) in the selected cities  Consultation with stakeholders

 Public consultation  Final presentation of the plans III.b Implementation of the strategy and action plans III.c Monitoring and evaluation of the sustainable transport strategy and formulation of a replication strategy.

Outcome IV: Capacity-building, training and awareness creation

October 2004 12 GEF alternative ( outcomes and main activities of Barriers (baseline) full-scale project) 4. Weak Activity: institutional capacity IV.aDesign of public campaigns with respect to the impacts of public and private of sustainable transport, outlining the advantages of transport officials and high-capacity vehicles (buses), transport corridors and operators; Low public non-motorised modes of transport in general and with awareness regarding respect to access to the selected World Cup venues in sustainable particular transportation options IV.bStrengthening of institutional capacity and training of public and private urban transport officials and community groups by technical assistance and a series of targeted training workshops

C.3 SUSTAINABILITY (INCLUDING FINANCIAL SUSTAINABILITY)

The financial sustainability is closely linked to the public and private institutions and companies who are operating the public transport system. The project will contribute significantly to the financial sustainability of public transport services in the two key intervention cities by creating a captive market for upwards of 60,000 public transport users at least three times per month, if not more often, for the foreseeable future beyond 2010. These services will complement standard peak commute services, as large sporting events and other large public events using stadia (such as political rallies and public holiday events) are generally held in the evenings, on weekends, and on public holidays. In addition to the significantly increased captive audience, the public transport will operate on improved and potentially dedicated ways, and with considerable enhanced infrastructure in terms of stations, stops, and intermodal interchanges and commuter information provided by the intervention cities. The improved performance of the public transport system will attract additional users which will help to make the system more profitable. The middle and higher-income group that can afford cars can be divided in the so-called ‘stubborn’ and ‘selective’ customers. The first group will only use cars, opting out of public transportation, no matter what the service is. However, demonstration of high- quality public transport during the events may persuade the ‘selective’ customers to use public transport, if it meets their requirements of performance, speed and convenience.

More specifically and within the public sector the project will support the improvement of existing public transport services and the management thereof. Local government officials responsible for transport and environmental management will use the project as a strong platform for engagement, monitoring and evaluation, thereby building their capacity and knowledge in a very practical ‘learning-by-doing’ way. With city authorities concentrating on provision of infrastructure, information, licensing and enforcement, service providers with such a regular and ongoing captive market as envisioned in the proposal will operate more profitably, thereby increasing their ability to serve marginal and low-income markets, improving mobility for all and enabling social transformation.. In this context the project will contribute to South Africa's plans to formalize the minibus taxi paratransit sector, as well as contribute to more sustainable financial footing for the existing public city bus services and a few urban commuter rail services that serve stadia sites. As part of the plan to make the project efforts financially sustainable ongoing efforts to re-evaluate the subsidy schemes for public and private transport companies will be supported The pricing structure will be overhauled and adjusted with the view of creating a sound financial public transportation system. Particularly for lower-income groups, the updated public transport infrastructure will deliver a significant impact in terms of improved accessibility and affordability.

October 2004 13 As with most infrastructure, stadia design leaves a long legacy of embedded energy determination. From an environmental perspective, the proposed changes to design are likely to influence spectator access to stadia for decades to come. South Africa is a country where the most popular sports (soccer, cricket, rugby) are played in stadia. In this context, the envisaged design changes have the potential to displace the emissions from tens of thousands of private vehicles at least three times per month, if not more often, in each of the venue cities affected, as well as to influence the design and renovation of other stadia in the future in Southern Africa. The project opportunity for mitigation of both greenhouse gas emissions and localised pollutants can be anticipated to impact in the order of decades, instead of years, thereby offering GEF a very good impact return on investment.

From a financial perspective, stadia re-design happens rarely, and a once-off investment in such a window of opportunity like the 2010 FIFA World Cup will have long-lasting impacts for the public transport system that serves these stadia. A captive user base of over 60,000 additional clients, three to six times per month, is expected to provide the foundation for financially self-sustaining transport service provision well into the future, as well as fund modernisation of fleets and infrastructure.

Beyond 2010 - South Africa uses its stadia for a wide variety of social interactions. The most common and obvious of these interactions are sporting events, mainly soccer and rugby. South Africa has professional leagues in both sports, with teams competing all year round and also hosting international friendly events and national team training. Beyond sports, South Africa's stadia are used for social events such as days of celebration and remembrance for public holidays such as Youth Day and Heritage Day, and for important funerals or award giving events. South Africans come in the tens of thousands to these events, making stadia ownership a viable business proposition, and transport to stadia a significant opportunity for the private sector. Leading up to the 2010 FIFA World Cup South Africa will accelerate the upgrading of its stadia for training purposes and for international events, and beyond 2010 these stadia will continue to be part of the mainstream of South African daily life.

Because the stadia are such high profile and popular venues, the format for access to these venues will undoubtedly influence access to other highly populated public spaces such as shopping and entertainment facilities. Intervention cities will have the opportunity through the 2010 events to experience and fine tune the motorised dedicated public transport corridor infrastructure and management services, as well as evaluate the enhancement of non-motorised infrastructure use, and apply these improvements to other areas of the city. Such plans are not proposed in isolation in terms of the stadia access re-design and the 2010 events, but arise from the existing long term plans of most major South African cities. Johannesburg in particular, likely home to the 2010 FIFA World Cup final match, has already articulated a plan for public transport priority along specific corridors. The GEF project would fast track elements of this plan, enhance it with a strong and very high profile example, and allow the city to spend scarce financial and human resources on public transport infrastructure enhancement instead of stadia access redesign, an aspect or urban transport not currently included in their corridor plans.

C.4 REPLICABILITY

In excess of one million people will experience the proposed changes to stadia access. The experience itself will "train" spectators to plan on using public transport or NMT, and in many instances will provide the first opportunity for many South Africans to experience public transport. Once experienced, accepting the imposition of exclusive public transport access becomes familiar. However, the project goes beyond this limited experience to support more extensive sustainable

October 2004 14 transport management measures such as application in 2010 and beyond of travel demand management measures in South African cities. The communications/public awareness budget is the formidable outreach mechanism that will begin the process of introducing the measures and the stadia access requirements, "selling" the need for, and pleasant operation of these services and requirements, and explaining and documenting their use and success. The DOT expects these two features of profile and communications to be the catalyst of a ripple effect in South Africa and Southern Africa.

It should be noted that with circulation of the project proposal in the South African community, several bi-lateral development co-operation donors have already expressed interest in financially supporting additional city candidates for stadia access re-design, banking on the opportunity to leverage work done under the auspices of the GEF to expand the benefits to more cities, large and small. These expressions of interest have come from the United Kingdom, Denmark and the United States, in addition to initial expressions of interest and potential co-funding from other donors.

Apart from the public infrastructure as such, the project is likely to define the development of not only new stadia, but also new conference and exhibition centres, and potentially shopping, entertainment, and government service centres in South Africa.

The project also ties in with a larger effort to re-vitalise public transport logistics in South Africa, and to articulate the return on transport infrastructure and service investments in terms of gross domestic product (GDP). The project offers a demonstrable example of how sustainable transport can be implemented, and a tangible opportunity to quantify the benefits of such an investment in terms of reduced time delays, accident incidents and avoidance costs, local and global emissions and their externality costs, improved security, empowerment, and many other benefits. This articulation of benefits as part of the project implementation will be of enormous value to policy makers as they can craft additional tools and measures to manage the urban environment and provide sustainable transport services and infrastructure.

South Africa is also a leader on the continent. Given the high visibility of the World Cup across Africa, and the demonstration of these transportation and climate change mitigation measures via stadia access, the project is likely to provide a best-practice model for renovation and development of other public spaces, including stadia, entertainment and shopping venues, and government service centres in other African countries, thereby influencing a climate change benefit of lasting impact well beyond the reach of a once-off project.

The project’s key asset in terms of replicability is its relatively straightforward setup in which simple infrastructure and access changes offer long term climate change mitigation opportunities. The project will specify key performance indicators with respect to its objectives and outputs. These indicators will facilitate monitoring of the progress of provinces and local authorities in implementing sustainble urban passenger transportation. The project will integrate a component to make its experiences replicable and distribute the lessons learned to interested parties in other parts of the continent. African governments, seeking relevant and cost effective climate and pollution mitigation measures, are thereby enabled to notice the cost-effective nature of the intervention and will be capacitated to implement similar initiatives.

In summary, key elements of a replication plan that will be put in place are the following:  A comprehensive monitoring and evaluation system will accompany the intervention. This will help to identify what works, what doesn’t and why. Lessons will be extracted from that body of experience and through an aggressive communication and outreach plan disseminated both within South Africa and beyond. Cities and owners of venues (such as shopping centers) will quickly learn about the replicable elements and start including these

October 2004 15 elements in their own plans. To facilitate such learning the project during its final stage will invite transport authorities and owners of venues to visit the host cities and inspect the transport system.  Prefeasibility studies in a limited number of other cities will be funded through the project using a competitive approach, among others based on co-funding levels available from these cities themselves for undertaking the (pre) feasibility studies.  The project will work closely with donors who have already shown an interest to expand and replicate the work that will be done under the UNDP-GEF project in the other 7 host cities and beyond.

C.5 STAKEHOLDER INVOLVEMENT/INTENDED BENEFICIARIES

The DoT will be the executing agency for the PDF B activities. DoT will actively look for involvement of the main stakeholders during this preparation phase as well as during the execution phase of the full-scale project. The immediate beneficiaries of the project will be the national government, local government and partner institutions, private transport companies and associations and the owners of the soccer stadia selected to take part in the proposed initiative. Ultimately, the beneficiaries will be the customers that will acquire a better public transportation system.

Major stakeholders include:

 South African National Departments: o Transport (DoT) o Environmental Affairs and Tourism (DEAT) o Sports and Recreation South Africa o Department Of Provincial And Local Government (DPLG) o Minerals and Energy (DME) o Public Works (DPW) o Housing (DoH) o National Treasury (NT) o Science and Technology (DST) o National Intelligence Agency (NIA) o S.A. Police Service (SAPS)  Local and provincial government transport and environmental management authorities in all nine South African provinces  Public transport and non-motorised transport users  Stadia owners and public transport service providers  Transport infrastructure finance organisations  Residents of all major metropolitan areas of South Africa (with particular benefit to the mobility of the poor in these cities)  Non-governmental organisations (NGOs) and civil society organisations (CSOs)

D – FINANCING

D.1 FINANCING PLAN

The full-size project is expected to exceed US$ 30 million, itself a part of a far more substantial re- investment in the public transport sector by the Government of South Africa. Of this US$ 30 million

October 2004 16 plus, the PDF project will develop a business plan for support activities to be implemented under a main GEF grant anticipated in the amount of US$ 11 million. The remainder will be co-financed by the national Government, municipalities and donors.

D.2 CO-FINANCING

Upgrades to the Stadia to address FIFA requirements are currently projected at costs in excess of R1.8 billion, or roughly US$ 280 million, to be paid by stadium owners, including local authorities, private land developers, and South African sporting associations such as the South African Football Association (SAFA), the local FIFA partner.

An estimate for the cost of public transport and non-motorised transport infrastructure and services upgrades and developments has not yet been established, but the DoT anticipates budget requests in excess of R 3 billion (approx. US$ 461 million) over the period 2005-2009.

Regarding external donor support, the Global Opportunities Fund of the UK Foreign and Commonwealth Office and the Danish International Development Assistance (DANIDA) have expressed an interest in being engaged in the main implementation project as a partner to the Government of South Africa.

E - INSTITUTIONAL COORDINATION AND SUPPORT

E.1 CORE COMMITMENTS AND LINKAGES

The DoT is the responsible ministry at the national level for providing safe, reliable, effective, efficient and fully integrated freight and passenger transport operations and infrastructure which will best meet the needs of freight and passenger customers. National functions include macro transport policy formulation, strategic planning, norms and standards, research and studies, demonstration projects, training, international agreements and some inter-provincial matters. The provincial governments are responsible for coordination at provincial level. Outside metropolitan and district areas, the provincial authorities are fully responsible for the provision of rural transport, infrastructure and facilities. In line with the Municipal Structures Act, local government at the metropolitan level is responsible for execution and implementation within the framework of provincial legislation and policy.

October 2004 17 D.2 CONSULTATION, COORDINATION AND COLLABORATION BETWEEN AND AMONG IMPLEMENTING AGENCIES, EXECUTING AGENCIES, AND THE GEF SECRETARIAT, IF APPROPRIATE.

The UNDP is the GEF Implementing Agency for this project. The Country Cooperation Framework (CCF), within which UNDP plans and implements its development cooperation intervention, has currently been defined for 2002-2006. It includes ‘environment and development’ and ‘local governance’ as focal areas of attention. With respect to these areas, UNDP South Africa’s objective is “to promote innovative legislation and action to protect the environment while contributing to the eradication of poverty in partnership with all levels of government, civil society and the private sector” and “poverty reduction by local governance”.

Currently, UNDP-South Africa is supporting the Department of Environmental Affairs and Tourism (DEAT) and other national stakeholders in policy development and capacity building in the areas of:

 Environmental planning and coordination (e.g. “Greening the WSSD initiative” to translate the Summit’s thinking into local action);  In the area of climate change, UNDP/GEF is supporting a number of renewable energy and capacity building projects; and  Community empowerment for sustainable development.

D.3 IMPLEMENTATION/EXECUTION ARRANGEMENTS

UNDP will serve as the Implementing Agency for the GEF project, which will be nationally executed by Department of Transportation (DoT). Depending on the outcome of the PDF activities, some components and activities will be implemented by other agencies or institutions, such as local authorities. In the PDF B phase, a Project Steering Committee will be set up, consisting of the project proponent (DoT), co-financing agencies and other interested stakeholders from government, NGOs, private sector and civil society.

October 2004 18 PART II - PROJECT DEVELOPMENT PREPARATION

A - DESCRIPTION OF PROPOSED PDF ACTIVITIES

To be able to formulate in detail the desired outcomes and outputs and needed activities of the full project, the DoT has requested PDF B support. The table below gives an overview of anticipated PDF B outputs and proposed activities. All PDF B activities have been designed with the view of identifying, understanding and analyzing the barriers which will be removed under the full project.

PDF-B outputs and activities Output 1: Development of sustainable urban transportation planning options Activity: 1.1 Analysis and in-depth assessment of barriers related to transportation planning, including capacity needs and gaps at the institutional, systemic and individual level. 1.2 Awareness creation for policy makers and planners by means of workshops and seminars on sustainable transportation options (public and non-motorised transportation, integrated transport/ land-use planning) and international experiences therein (e.g., Curitíba, Bogotá, Athens) 1.3 Development of a menu of options related to sustainable transportation and spatial planning particularly as they relate to finance and management issues 1.4 International experiences will be exposed at workshops and options will be prioritized in view of the South African context and needs, including an assessment of the climate change impacts of public transportation and vehicle use changes Output 2: Assessment of the potential of alternative transport technologies and fuels Activity: 2.1 Study on the possibilities of green vehicle (low or zero-carbon emitting vehicles), alternative fuel technologies and non-motorised transport and their potential emission reduction impacts 2.2 Study on experiences and lessons in other developing countries and their relevance in the South African context Output 3: Assessment of sustainable transportation options in the selected World Cup venue cities Activity: 3.1 Selection of 2010 FIFA World Cup venues (cities and stadia) which will be adapted to sustainable transportation options (public transportation, non-motorised) 3.2 Stakeholder involvement in the selected venue cities  Definition of the key modalities for an information and capacity building process surrounding the project  Workshops to educate local transport and environmental management officials and inform and involve NGOs 3.3 Determination of implementation parameters in terms of improvements of venues and to promote public and non-motorised transport  Identification of options and feasibility analysis (cost-benefit, environmental and social impacts) of these options  Elaborate a methodology to calculate emission reductions that can be attributed to the intervention. Examples from the GEF portfolio will be reviewed and experts will

October 2004 19 PDF-B outputs and activities be consulted.  Consultation with World Cup venue city transportation and environment managers as well as with the stadia owners/managers  Investigation of financial options  Analysis of environmental and social impacts

Output 4: Workshops and formulation of the project brief (GEF Executive Summary) Activity: 4.1 Workshops on sustainable urban transportation and logical framework 4.2 Elaboration of public communication and stakeholder plan 4.3 Preparation of GEF executive summary and relevant documents of the full project, (including project logical framework and indicators for monitoring and evaluation, management arrangements, project risk analysis and organisational setup

B - PDF BLOCK B OUTPUTS

The main output of the PDF B is the GEF Project Brief/ Document. The other three outputs are presented in the table above and are related to developing sustainable urban transportation planning options, assessing alternative transport technologies and fuels and assessing sustainable transportation options in the selected World Cup venue cities. These outputs will be produced through reports, workshops and a participatory project design process. The following reports and documents are expected to be generated in the course of the PDF B::

 The GEF Executive Summary of the full-sized project;  UNDP Project Document with a detailed budget and necessary Terms of References;  Proceedings and other documentation of workshops and seminars;  Report on issues and options in sustainable urban transportation and land use planning;  Report on the potential of introducing alternative (green) vehicle technology and fuels as options for sustainable transportation in South Africa;  Report on the selection of the two (or more) most appropriate venues to demonstrate improved, sustainable, climate friendly transportation technologies and approaches;  Reports and plans on the assessment and key implementation schemes in terms of venue improvement and transport infrastructure improvements to promote the use of public and non- motorised transport during the World Cup 2010 events; and  Plan containing the objectives and pathways for a public communications and awareness raising campaign.

C – JUSTIFICATION

Without the proposed GEF intervention and the associated unique opportunity to link the objectives of climate change mitigation with issues of economic development and social justice, South African authorities will simplify rather than complicate the tasks before them as they strive to be ready for the 2010 FIFA World Cup. Such a simplification would include focusing stadia upgrades on seating requirements and focusing transport upgrades on expanding and improving existing services for

October 2004 20 private car users, without obtaining the financial, service and climate benefits of a captive market provided by public transportation customers.

This GEF project offers high impact for low investment, and long term impact for a once-off expenditure. Although South African co-funding towards both stadia renovation and public transport service developments will exceed even the largest possible GEF contribution, a GEF full-size project will be the only possible catalyst to jump on the moving train of the FIFA 2010 World Cup and realise an existing potential for very concrete and long lasting climate benefits with a high potential for replication in other countries.

The 2010 FIFA World Cup will be a celebration for soccer fans around the world and an event for everybody, no matter if they are rich or poor. The lasting use of stadia in South Africa has traditionally been associated with entertainment options for people of lesser income, and the anticipated GEF grant for the full-scale programme, due to its potential impacts on the financial sustainability of public transport services, will offer a unique opportunity to impact on the mobility of these groups.

D – TIMETABLE

January 2005 – August 2005 (8 full months)

E – BUDGET

The DoT seeks an initial US$ 197,313 in PDF B grant funding from the GEF for the project, which will leverage multiple funding opportunities for the implementation of a full project. The DoT commits to co-funding for the PDF B activities to a value of US$ 178,000,

The following table provides a breakdown of costs associated with the proposed activities. The total budget is USD 375,313, of which USD 197,313 is the requested PDF B grant from the GEF.

Output PDF B Activities Total Financing Sources GEF DoT 1 Development of sustainable urban transportation planning 159,520 109,578 49,942 options 2 Assessment of the potential of alternative transport 45,631 28,578 17,053 technologies and fuels 3 Assessment of sustainable transportation options in the 112,531 18,578 93,953 selected World Cup venue cities 4 Workshops and formulation of the project brief (GEF 57,631 40,579 17,052 Executive Summary) Total 375,313 197,313 178,000

October 2004 21