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(42 kilometers in total), 1 central station, 4 intermediate stations, 52 regular stops, and a 420-vehicle fleet. The project had the following goals: • • • • • •
Reduce costs and travel times for users Foster competitiveness, urban entrepreneurship, and productivity in the city Encourage technological advancements and savings in fuel Improve accessibility to main roads Improve safety and reduce pollution Carry 400,000 passengers per day.
The government (national and local) funded the infrastructure (roads, s tations, stops, and bus parking and maintenance depots), part of the rolling stock, and fare collection systems. Total investment in the project was US$320 million. Multilateral development banks provided around 5 percent of the total public financing. Four bundled operators raised more than US$138 million to finance and procure the rolling stock. Two other private partners operated ticketing and fare collection systems. A second phase of the project includes availability payments to pay for the infrastructure, and a third phase includes the use of local sources of income to pay for the infrastructure. Phase I of TransMilenio achieved positive results. More than 1,200 old buses were decommissioned and replaced by articulated buses on dedicated routes. Government subsidies were not required to cover operation costs. However, the government faced construction delays due to difficulties in obtaining
TABLE A.3 Lessons
learned from the TransMilenio bus rapid transit project in Bogotá, Colombia
BEST PRACTICES
AREAS FOR IMPROVEMENT
• A fuel tax was established to finance the feasibility studies, designs, and construction. This tax paid for most of the infrastructure required for TransMilenio. [financing risk] • The project demonstrated how a national and local government can collaborate to develop impactful projects through clear delegation of responsibilities, setting of deadlines, and provision of resources to the project. [political and social risk] • The project has good financial management through the fideicomiso and electronic payment systems. [financing risk] • The competitive procurement process gave more certainty to the bidders and led to an unbiased choice of operator. [operation risk] • Tariffs reflect the costs of operation. [operation risk] [political and social risk] [financing risk] • The payment mechanism includes performance-based incentives. [operation risk] • TransMilenio’s control center monitors service effectively and communicates information to users. This helps to plan, validate, and dispatch system operations. [operation risk] • Creation of a special-purpose vehicle allowed for the integration of existing operators, preventing social conflicts and maintaining local experience. [operation risk] [political and social risk] • The project included a system to decommission old buses to maintain service quality and reduce congestion. [operation risk] • Continued political support and championing of the project are important ingredients of success. [political and social risk] [planning risk]
• A better project structure would have improved outcomes— many of the issues experienced during the operations phase originated on the public side of the partnership. Infrastructure was outpaced by demand or the quality was inadequate. The city would have benefited more by assigning more functions to the private sector. [planning risk] [design risk] • To avoid construction delays, the planning authority could have obtained permits and acquired land before executing the construction contract. [planning risk] • The government could have established deadlines to start operations and conduct technical supervision of construction contractors, which could have been promoted with penaltyand-reward mechanisms in the contract. [construction risk] • Insufficient planning and integration of phases may overconcentrate demand in some areas and affect the quality of service. [construction risk] • The government should follow good corporate governance practices to avoid brain drain and learning costs. [operation risk] • The public authority should regularly review the operations report and respond as needed to changes in demand and system pressures. [operation risk] [design risk] • Demand forecasts must be robust and should be updated periodically. [design risk] [operations risk] • Increasing coverage of payment points and introducing incentives for concessionaires to maintain better control of payment evasion may have improved financial performance. [financing risk] [operation risk]
Source: World Bank.
