Allocating Functions and Assigning Risks | 71
Across the range of project functions, both the private sector and the government have roles and responsibilities to assume, including the operation of buses,12 collection of fares,13 and distribution of revenues.
Quality and level of service The structures of private bus operators may allow for the provision of higher-quality services at lower cost than the structures of the public sector. Through well-structured contracts, the government can hold the private party accountable for making services available at agreed-on quantities and quality, which can improve the welfare of transportation users. In an alternative scenario, the government retains this risk, which limits its ability to compel an operator to improve performance. Mitigating this risk requires linking the operator’s remuneration to its performance, providing an incentive for operators to improve service quality. Box 7.13 presents lessons learned for achieving quality and level of service. For more guidance, see Gómez-Lobo and Briones (2014) and Tiznado et al. (2014).
Congestion
BOX 7.13
International lessons for achieving quality and level of service • The government should establish deadlines to start operations and conduct technical supervision of construction contractors to avoid delays (Metropolitano). • Performance-based payments can enhance performance levels (Acabús, Metrobús, Metropolitano, Transantiago, TransMilenio). • Control centers must monitor service effectively and communicate information to users. This monitoring helps to plan, validate, and dispatch system operations (TransMilenio). • The public transportation authority should have a qualified team of professionals managing the system (Transantiago). • The government should require concessionaires to develop an operation plan according to the service standards set out in the contract, which the public transportation authority can then validate (Transantiago). • Designing mechanisms for operators to replace old buses with newer and more energyefficient buses can lead to continuing service improvements (Transantiago).
The government is best positioned to assume this risk since it is responsible for planning transportation systems, which includes securing exclusive lanes and rights of way, establishing efficient priority signaling, and enforcing exclusivity and access. Various options exist for reducing congestion risk that affects operations, and there is no single mitigation strategy. Planners might ask the following questions when developing a mitigation strategy: • Can exclusive lanes be developed and credibly enforced? • Can the government and society afford the charges required to cover the capital and operating expenditures for developing new, exclusive lanes? • Can incumbent operators be integrated into the new system, or can they be forced out of the new system to reduce bus traffic and stakeholder opposition? • Can priority signaling enable buses to move freely ahead of traffic to reduce congestion? Box 7.14 presents lessons learned for reducing congestion. For more guidance, see APTA (2010). After evaluating these options, planners select the best option and include it as an objective of the project when tendering. If the selected option will require enforcement and penalties for violations, the government will want to ensure that credible enforcement mechanisms are in place. Once the mechanisms are in place, the private operator can manage congestion, provided the government continues to enforce exclusivity rights.
