Draft Global Report on Improving Transport Connectivity for LLDCs and Building of Resilient Transport Infrastructure to Support Accelerated Progress Towards the SDGs This study was commissioned by the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS). UN-OHRLLS gratefully acknowledges Ms. Fadiah Achmadi for preparing the report. The views expressed do not necessarily reflect those of the United Nations. The funding for the preparation of this study was made possible through the project led by UN-OHRLLS entitled: Strengthening the capacity of Landlocked Developing Countries under the “Belt and Road Initiative” to design and implement policies that promote transport connectivity for the achievement of the SDGs which is funded by the 2030 Agenda for Sustainable Development Sub-Fund - United Nations Peace and Development Trust Fund. Table of Contents Table of Contents .......................................................................................................................................................................... i Acronyms and Abbreviations ................................................................................................................................................ iii List of Tables ................................................................................................................................................................................. iv List of Figures ................................................................................................................................................................................ v List of Boxes .................................................................................................................................................................................. vi Executive Summary .................................................................................................................................................................... 1 1. Introduction ......................................................................................................................................................................... 4 1.1. Landlocked Developing Countries ....................................................................................................................... 6 1.2. Transport Connectivity ............................................................................................................................................. 7 1.3. Global Frameworks for Sustainable Development in LLDCs ................................................................... 8 United Nations Sustainable Development Goals .................................................................................................. 8 Vienna Programme of Action ....................................................................................................................................... 8 1.4. Organization of the Report ...................................................................................................................................... 8 2. Status of Transport Infrastructure Development ................................................................................................ 9 2.1. SDGs as Drivers for Improving Connectivity ................................................................................................... 9 2.2. Road Transport Infrastructure .............................................................................................................................. 9 2.3. Rail Transport ............................................................................................................................................................ 14 2.4. Air Transport .............................................................................................................................................................. 20 2.5. Inland Water Transport ........................................................................................................................................ 24 2.6. Dry Ports ...................................................................................................................................................................... 26 2.7. Sea ports ....................................................................................................................................................................... 27 2.8. Transport Corridor Infrastructure Development ...................................................................................... 28 3. Status of Development of Complementary Infrastructure to Transport Connectivity ..................... 33 3.1. Energy Infrastructure ............................................................................................................................................. 33 3.2. ICT Connectivity ........................................................................................................................................................ 36 4. Development of Climate-Resilient Infrastructure ............................................................................................ 40 4.1. Climate Change .......................................................................................................................................................... 40 4.2. Sustainable Solutions ............................................................................................................................................. 43 4.3. Adaptation Policy Framework ............................................................................................................................ 45 5. Investment and Maintenance Funding for Transport Infrastructure ...................................................... 47 5.1. Keeping up with demand ...................................................................................................................................... 47 5.2. Traditional Funding Sources ............................................................................................................................... 48 5.2.1. Domestic resource mobilization - Public Finance ............................................................................ 48 5.2.2. Official Development Assistance .............................................................................................................. 55 5.2.3. Private Sector Financing and Foreign Direct Investment ............................................................. 56 5.2.4. Funding by Commercial Banks ................................................................................................................. 57 5.2.5. Public-Private Partnerships ....................................................................................................................... 58 5.3. Innovative Funding Sources ................................................................................................................................ 60 5.3.1. Pension Funds and Insurance Reserves ............................................................................................... 60 5.3.2. Specific initiatives .......................................................................................................................................... 61 5.3.3. South-South and Triangular Cooperation ............................................................................................ 63 5.3.4. Financing climate-resilient infrastructure (Climate Finance) .................................................... 65 6. Improving Soft Infrastructure for Transport Connectivity .......................................................................... 68 6.1. Trade Facilitation ..................................................................................................................................................... 68 6.1.1. Border crossing efficiency .......................................................................................................................... 69 6.1.2. Border Crossing Operation Improvement ........................................................................................... 72 6.2. Legal Framework ..................................................................................................................................................... 76 6.2.1. International agreements and conventions ........................................................................................ 76 6.2.2. Regional and sub-regional agreements ................................................................................................ 85 7. Preparedness of LLDCs to Handle the Impact of Pandemic and Other Emergency Situations ..... 88 7.1. COVID-19 impacts on transport system ......................................................................................................... 89 7.2. Measures to facilitate cross border activities during pandemic .......................................................... 90 7.3. Important role of digitalization .......................................................................................................................... 92 8. Policy Recommendations ............................................................................................................................................ 94 i 8.1. Improving capacity on closing