The TransMilenio public transportation system (Bogotá, Colombia) :

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1 Best practice presentations by The TransMilenio public transportation system (Bogotá, Colombia) : An innovative and sustainable Public-Private Partnership to improve the living conditions in a large, developing city Vancouver, June 19th, 2006 D. Héron 1

2 is the only global company to offer the entire range of environmental services in the water, waste management, energy and transportation sectors.we have been creating global and integrated solutions for public and private sector clients the world over for more than 150 years. The quality of our research, the expertise and synergies developed between our teams, our mastery of the public-private partnership model and our commitment to sustainable development have made us a benchmark player in major environmental matters. With 271,153 employees around the world, recorded revenue of 25.2 billion euros in Founded at the dawn of the industrial era and the start of urban development, Veolia Environnement has constantly adapted to the changes in our societies over the past 153 years. has been a member of the UN Global Compact since For more detailded information check And 2

3 operations and Global Compact principles Global Compact 10 principles Human Rights Principle 1: Business should support and respect the protection of internationally proclaimed human rights; Principle 2: Make sure that they are not complicit in human rights abuses. Labour Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: The elimination of all forms of forced and compulsory labour; Prinicple 5: The effective abolition of child labour; Principle 6: The elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: Undertake initiatives to promote greater environmental responsibility; Principle 9: Encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption Principle 10: Business should work against all forms of corruption, including extortion and bribery. examples of contributions fully intends to shoulder its responsibilities concerning enforcement of human rights and the basic labour rights of its employees in all its subsidiaries, consistent with the commitments expressed in its Ethics, Belief and Responsibility program. Veolia Environment conducts a global monitoring of some one hundred social indicators and publishes a Social Initiatives Handbook based on internal assessments of actions taken and best practices. Some specific initiatives are launch such as a Purchasing Charter guaranteeing tha ILO principles are adhered to or such as a Fundamental Social Rights Charter (Veolia Water) to contribute to the respect of labour policies. By reducing human-caused environmental pollution, plays a role in preventing health problems and preserving natural resources. employs 600 experts (300 researchers and 300 field developers) and develops R&D programs on water and sanitation issues (Anjou Recherche); public transportation (Eurolum); energy services and waste management (CreeD). AquaFed, the International Federation of Private Water Operators, of which Veolia Water is a founding member, has joined the Water Integrity Network (WIN). 3

4 Initiative at stake: overview of TransMilenio Bogotá is a big urban sprawl (8,350,000 inhabitants in 2006, % under the poverty line (2003). The city (located at an altitude of 2,640m) faces a severe problem of air pollution (1 million vehicles, 4,700 industries). 80% of the population dependent on public transportation. Objective: to build a bus network with separate lanes, based on a set of principles and routes planned through consultation with the authorities and the population. New mobility strategy and tough criteria set out by the public authorities in their call for tenders for a new urban transit system, including low capital outlay to keep fares low; faster, more frequent transportation; better environmental protection. TransMilenio is the backbone infrastructure of the public transportation service in Bogotá. Veolia participates in the operation through its local subsidiaries Ciudad Movil and Connexion Movil (210 articulated buses). An innovative, proper infrastructure for mass transportation. Project launched by the Municipality of Bogotá. Serves around 1 million passengers per day in 94 stations with a fleet of 838 articulated buses running on a network of 70 km (trunk-route services) and 432 km (ordinary and feeder services). Opened to the public in November The project consists of 7 different phases. The ongoing phase is phase III, beginning in The total project is due to end in

5 The concept of Bus Rapid Transit (BRT) Bus rapid transit (BRT) = a broad term given to a variety of different transportation systems that, through infrastructural and scheduling improvements, attempt to use buses to provide a service that is of a higher quality than an ordinary bus line. The goal of such systems is to at least approach the service quality of rail transit while still enjoying the cost savings of bus transit. The choice of the BRT system can be considered as a financially sustainable alternative to the very expensive underground system. It helped to improve the quality of life of Bogotá's inhabitants, while enhancing the city s competitiveness, rationalizing the pre-existing chaos of public transportation, reducing the average time daily spent by the population in public transportation, improving service continuity and average commercial speed, ensuring public transportation becomes the priority system compared to individual private car transportation. TransMilenio is the largest social investment project that has been developed in recent years in Bogotá. It is now part of one of the most modern and efficient urban bus transportation systems around the world. 5

6 A multi-stakeholder engagement inside the PPP Sector Agency or Company Skills, mission Public Office of the Mayor Leadership TRANSMILENIO S.A. Institute for Urban Development Secretary of Transportation and Traffic Department of Planning Public company Contracting infrastructure development Reorganization of existing transit routes; enforcement; regulation; signalling Insertion of the bus rapid transit system in the comprehensive plan; approval of road, public space and urban design Private Secretary of Finance Budgeting and allocation of resources for infrastructure capital investments City Council (Local Elected Body) Approval of plans, TRANSMILENIO S.A. creation and city budget. Trunk Operation Concessionaries: SI99 Companies created out of existing transit operators for bus S.A.; Expres del Futuro S.A.; SITM S.A.; acquisition, drivers and maintenance personnel retention, Metrobus S.A. operation and maintenance of buses. Feeder Buses operation contractors: SIDAUTO, CODATERMIL; URIBE- URIBE; ALCON; ALNORTE Fare Collection Concessionary: ANGELCOM S.A. Control centre provider: Electronic Traffic ETRA Existing transit operators, transformed to be able to operate feeder buses. In charge of the billeting system, fare collection and money administration, using cutting edge technology Contractor of the installation and customization of the largest real time control system for buses in Latin America and Spain Design, construction and supervision contractors Companies providing their knowledge and capacity to design, build and supervise the system set up in 48 months 6

7 Major impacts of TransMilenio This approach has yielded significant results, in economically viable conditions for the private operators: Situation before 1999 Progress made as far as 2003 Slowness: average traveling time for an ordinary journey in Bogotá: 1 hour and 10 minutes. Inefficiency: very long public service routes, with old buses and low-occupancy levels. 28,000 buses. Inequality: 95% of the road network crowded by private cars totaling about 1,000,000 vehicles transporting merely 19% of the whole population. Average commercial speed have switch from 5/8 km/h to 28 km/h. Average traveling time / journey has been reduced to 35mn. Load factor of the buses have risen from 45% to 95%, and bus capacity is higher (270 passengers). 18,000 buses. TransMilenio has become the central transportation system, serving more than 1 million people/day. Cost of a return ticket, six days a week = US$ 17 / month, i.e. < 6% of the average worker budget. The system has a 72% utilization rate by low income citizens. Contamination: 70% of particles emitted to the atmosphere came from motorcars. 1,500 old and polluting buses have been dismantled. Recent studies assess a decrease of 40% in the atmospheric pollution due to traffic rationalization. Danger: A high car-accident rate with a significant number of casualties. With the re-organization of the transportation system, crashes and their consequences have been highly reduced. On the long term, observers expect a drop of 80% of the road unsafety. Crashes: -81 %, pedestrian accidents: -94 %, injuries: -72 %, deaths: -93 %, assaults: -69 %. 7

8 Access to basic services for all TransMilenio ensures respect for human diversity abiding by the highest international standards throughout the entire system and allowing fair access to all citizens (no geographical monopolies), regardless of their physical, social, economic, gender, and age conditions. Access for all was a key principle of the project and its achievement is proven by the current TransMilenio users profile. The trunk-route system is wholly accessible for all citizens, including people with physical disabilities, elders, children and pregnant women. The pre-existing chaos in the urban transportation system was a severe constraint for disadvantaged and disabled people. Feeder services attend to peripheral passenger zones on an integrated basis in combination with the trunkroute services. This allows users to go from their neighborhoods to main terminal or midway stations by switching from the system's feeder buses to articulated vehicles without having to pay additional fares. The system also contributes to bring employment in marginalized urban areas. The building of the infrastructure itself was a job opportunity for many unemployed workers living in deprived areas of Bogotá. Within 28-year term, the objective is to meet the mobility needs of most part of the population thanks to a trunk-route extension of 388 km to serve 5.5 M passengers / day (thus covering 95% of the urban area). 8 AFFORDABILITY is a central concern of the project: Making transportation...accessible to low-income users...profitable for private operators fundable by the state.

9 Lessons learnt for replication Key success factors: Integration in a global urban strategy (public spaces, pedestrian zones, cycle paths, public parks), strong political will, taking into account the city's development trends and urban constraints. Local stakeholders (including former bus companies) took the lead for the accomplishment of the project. BRT is a relevant alternative to expensive public transportation systems like underground or tramway in big and fast-growing cities of developing countries: investment <US$7million / kilometer of infrastructure). Innovative funding methods such as value capture (creation of a TransMilenio s infrastructure trust fund). The private sector ensures operation expenditures through an interesting business model (the contract management type is an incentive for the operator's performance). Continuous financing process: allotment of 50% of the local surcharge on fuels, plus commitment of funds to the project by the National Government. High level of community participation, strong visual identity referring to citizenship reinforces the sense of ownership among the population). Citizens in Bogotá are showing a positive change of attitude, reflecting in spontaneous compliance with civic rules. Good governance system, with a coordination committee involving the different district entities in order to follow the progress of all the processes. 9 Areas of improvement: The use of diesel buses instead of clean-burning natural gas or electric-powered light rail is best defined as an economic decision. Diesel pollution has a much greater impact in a high-altitude city like Bogotá than at sea level (Bogotá is 2,600 meters above sea level). Dieselpowered buses also produce more noise pollution than comparable natural gas-powered buses. Most users are distrustful and purchase only one or two trips at a time, due to problems with the cards at the launch of the system. Although the technical problems have been fixed, there are not enough financial incentives (discounts) for multiple purchases. Dissemination process and knowledge transfer: General information, key figures, case studies & specific issues about the TransMilenio are available at International partners of the project also participate to the knowledge transfer worldwide. Experience was also shared with 16 countries that visited Bogotá in November 2001, for a seminar about the BRT experience. According to the World Bank, Bogotá's BRT system is the seed for the national program for the implementation of similar projects in other cities.