GEF Awards US$5.38 Million Grant to Mexico
WB to implement the project in order to improve sustainable transport and air 
quality 

WASHINGTON, December 28, 2009 - The World Bank approved a US$5.38 million grant 
from the Global Environment Facility (GEF) for the Sustainable Transport and 
Air Quality Project in Mexico to be executed by the World Bank (WB). 

The project will be implemented in Leon, Monterrey, Puebla and Ciudad Juarez, 
and fosters long-term increases in the patronage of less energy intensive 
transport modes so as to promote reductions in greenhouse gases emissions 
growth rates. It will also introduce policy changes in favor of sustainable 
transport projects. 

Participating cities were selected through a competition in which 47 cities 
from 12 countries in Latin America participated as part of the GEF s Regional 
Sustainable Transport and Air Quality Program, which is being implemented in 
Mexico, Brazil and Argentina. An international committee evaluated the proposal 
on their technical merits, positive impacts, and the commitment shown by 
different stakeholders involved. 

 Rapid growth places a tremendous strain on urban services, including the urban 
transport network, ultimately affecting both economic productivity and 
citizens  quality of life,  said Gloria Grandolini, World Bank Director for 
Colombia and Mexico.  This project supports the correspondent states and the 
Mexican Government in its efforts to reduce carbon emissions in the transport 
sector, which accounts for 18 percent of Mexico s total greenhouse emissions,  
she added.
 
The Regional Project will focus on monitoring, developing methodologies and 
toolkits, and dissemination of lessons learned towards strengthening the 
capacity of specific cities to be able to develop comprehensive strategies to 
promote sustainable transport. 

The Clean Air Strategy for Latin American Cities seeks to improve air quality 
and to mitigate climate change to protect people s health and to improve 
quality of life in the cities. 

This GEF grant will co-finance studies and technical assistance that will help 
prepare projects in the aforementioned cities in order for them to be easily 
eligible for funding from the National Mass Transit Program and the Urban 
Transport Transformation Program. In this sense, GEF s funds are used as  seed  
or preparation funds to leverage projects that can be financed by these 
instruments so as to tackle environmental problems in view for an environmental 
transport system. 

Among expected outcomes are:

" Increase in number of trips in public transportation in intervened corridors; 
" Increase in number of non motorized trips in intervened areas;
" Decrease of CO2-equivalent tons emitted by ground transport in intervened 
corridors; and
" Increase in number of cities that are integrating environment and climate 
change components as a priority.

To achieve these outcomes, the project will provide technical assistance and 
research in order to:

" Improve the planning, management, financing and control of freight transport; 
" Address and suggest measures to mitigate barriers that impede a proper 
transport and land use integration; 
" Improve the institutional and regulatory framework, and to define the state 
government and municipal roles related to the planning, management and 
implementation or integrated and sustainable systems for urban transport; and 
" Introduce and promote walking and the use of bicycles as a viable and safe 
alternative to the use of private cars or other traditional motorized transport 
systems.

The project will be implemented by the Social Development Secretariat and the 
National Bank for Works and Public Services has been designated as the 
financial agent. The total cost of the project is US$36.96 million. The Bank 
will finance US$5.38 million and the government counterpart US$31.55 million. 
The project will be executed within a four year period and its implementation 
deadline is December 30, 2013.

What is the GEF?
An independent financial organization, the GEF provides grants to developing 
countries and countries with economies in transition for projects related to 
biodiversity, climate change, international waters, land degradation, the ozone 
layer, and persistent organic pollutants. These projects benefit the global 
environment, linking local, national, and global environmental challenges and 
promoting sustainable livelihoods.

The World Bank Group is one of GEF s implementing agencies and supports 
countries in preparing GEF co-financed projects and supervises their 
implementation. The Bank plays a primary role in ensuring investment projects 
management and development. The Bank invest in eligible countries based on its 
own experience in such countries, to promote investment opportunities and 
mobilize private sector, bilateral, multilateral, and other government and 
non-government sector resources, consistent with GEF s objectives and national 
sustainable development strategies.

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For more information on the project, please visit:
http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSi
tePK=40941&menuPK=228424&Projectid=P114012 

For more information on the World Bank in Mexico, please visit:
http://www.worldbank.org/mexico