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11.2 Situations affecting economic equilibrium A.1 Lessons learned from the Metropolitano bus rapid transit project
for the administration of resources to a fiduciary, which then maintains and deposits them into the necessary accounts according to the priority of payment that is determined at signing. The fare collection contract should define the prioritization of payment established—that is, the order of the accounts to which they must be paid once the income is obtained. The payment of operations and maintenance costs to system operators should come first, along with the payment of credit, which depends on the requirements established during the negotiation and signing of the financing.
Financial management arrangements can include additional guarantees. These guarantees may include the creation of a reserve or contingency fund— that is, a mechanism to save resources for expenses that are not foreseen in budget design and operation of the budget service. These funds can be made up mainly of resources coming from the operation of the service during established periods, agents’ remuneration, the project’s financial returns, government contributions, and penalties that may arise from the noncompliance of concessionaires or contractors with their obligations. likewise, some concessions consider creating funds dedicated to purchasing buses or scrapping obsolete units. another option is to create reserves to be used in case of default on payment to the financial institution or in case of a need to purchase more units to satisfy an increase in demand.
economic equilibrium clauses refer to the joint responsibility of the authority and the concessionaire for granting rights, obligations, and risks derived from the scope and fundamental elements of the administrative act (table 11.2). in case of a decrease in income and a change in the sustainability of the project (derived from established causes that may or may not be attributable to the parties), an adjustment mechanism must be applied that allows for the return of the economic equilibrium of the business model so that the operation of the transportation service is not affected, and thus performance is not put at risk.
The concession must clearly indicate causes that affect the economic equilibrium, applicable support, and guarantee norms. it must indicate the mechanisms and legal and technical instruments applicable to each situation so that the public administration (regulatory authority) may carry out the pertinent actions for the benefit of the affected party. mechanisms such as the following are commonly used to reestablish the equilibrium of the project’s business model:
• Fare adjustments • extensions of terms
TABLE 11.2 Situations affecting economic equilibrium
AUTHORITY CONCESSIONAIRE OTHERS
Change in regulations Deficiencies in the provision of the service (poor quality) Accidental case Uncertainty (lack of Insecurity in the service Cases of force majeure transparency, discretion) Suspension of the service Did not start the operation on the established date Social problems (uprisings, protests, revolts) Regulatory authority Noncompliance with concession obligations; suspension Macroeconomic aspects (inflation, of the service devaluation, interest rates)
