KfW IPEX-Bank expert to speak at UITP Global Public Transport Summit
News from 2019-06-04 / KfW IPEX-Bank
Carsten Wiebers, Global Head of Aviation, Mobility & Transport at KfW IPEX-Bank, will be part of the panel on “Is the Public Private Partnership business booming?” at the UITP summit in Stockholm on Monday, 10 June. KfW IPEX-Bank is the only commercial bank to be presenting at the summit.
Over three days, 15,000 international visitors and 350 exhibitors from 35 countries will cover all urban and regional transport modes across the globe. UITP Global Public Transport Summit is the world’s biggest event dedicated to sustainable mobility.
Financing sustainable mobility – a worldwide challenge
Any given country around the world is faced with the same problem: reduce the number of cars in cities, decrease pollution and make public transport more attractive, be it in urban traffic or cross-country mobility. Typically a city or national government assumes long-term responsibility for modern public transport services and employs private entities for investment and operation. Dividing responsibilities between the city or state, private operators and fleet providers may change the cost of financing by a multiple: in the case of a 10-year euro-denominated loan, for example, the cost of interest can range from 3.5-9% of the investment cost. The difference lies in the banks’ legal and economic interpretation of the risk they take in the same project. For public entities, in the end it always comes down to the requisition of providing high-scale public transport at manageable costs for both providers and customers. Carsten Wiebers knows from experience that there are different ways to meet these requirements: “There are many more alternatives than the classic concepts of either fully government-run or fully private transport. In some cases leasing, e.g. of buses or rail cars, can be the best solution for a city. These types of hybrid PPP structures have already been implemented in several countries such as Germany, UK and Chile.”
Affordable and attractive public transport is key to meet the Paris Agreement
The Fridays for Future movement is raising pressure on political and economic leaders. Young people around the world are requesting action now und demanding that the Paris Agreement be met. Financing for sustainable mobility will therefore be a major challenge in the years to come, Carsten Wiebers is sure: “On all continents we see public entities struggling with the growing demand for mobility while at the same time they are confronted with citizens asking for a cleaner and smarter way of transport. Financing partners can enable communities to advance their public transport services and at the same time contribute to affordable costs for their customers.”