Role of Government in Sustaining Mobility Rwanda Case Review Jit N. Bajpai Rwanda, March 21, 2014

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1 Role of Government in Sustaining Mobility Rwanda Case Review Jit N. Bajpai Rwanda, March 21, 2014

2 Discussion topics What are strategic goals & planned mid-term actions (EDPRS II) of Rwandan government to enhance accessibility & mobility of its urban and rural residents? What are good practice lessons that will make road based transport sector response in terms of institutional set up, pricing and sequencing of planned actions more effective in addressing mobility needs? How to nurture private transport services?

3 Moving from Strategy to Implementation Prioritization of investments within budget Strategic Economic merit (cost benefit) Social considerations Sequencing of critical building blocks Investments & actions Institution & capacity building Ensuring Sustainability of investments Pricing & cost recovery Operations & maintenance

4 Proposed Road Transport Activities under EDPRS II EDPRS II Trade Trade Promotion Promotion Urbanization Rural Development & Facilitation Strengthen external Kigali Urban Plan & Transport Connect Districts Connectivity Improve road capacity 2,850 Km Class II Regional Agreements Restructure private bus roads Kigali border roads services, 120 Km bus Improve farm to market Single window lanes, 17 Km BRT, 1000 access border clearance shelters, pedestrian fac. 7,000 Km feeder Cross-border bus Build new bus terminal Improve transport services services N-E by-pass Create new Publicprivate Create logistics center Support PT oriented city bus company development Increase PP rural bus Secondary towns Connect roads to Kigali services from 1,600 km now to 8,100 km Town by-passes Develop 11 quality bus services corridors

5 Enhancing internal and external connectivity Key Challenges Improve strategic roads connecting Kigali, borders, secondary towns and economic nodes/settlements (connectivity, road quality, capacity, safety & axle load controls) Strengthen national and district institutions in planning, prioritization & executions of investments & maintenance Ensure adequacy of Road Management Fund to sustain existing and newly created road assets (PP in maintenance, prioritization of works, allocation formula, mobilize resources) Provide reliable & affordable public transport services between Kigali & secondary towns/districts (Public-private Co., RURA regulatory regime)

6 Enhancing Urban Accessibility & Mobility Key Challenges in Kigali Strengthen traffic & congestion management Improve private bus service coverage, quality & affordability Create facilities for safe walking & bicycle use Promote transit-oriented urban development based on bus & BRT Build local and national institutions to sustain urban accessibility & mobility

7 Building blocks for enhancing road network capacity R O A D C A P A C I T Y Low Cost High Congestion Pricing, BRT, Urban Rail Reallocate Road Capacity: Bus priority lanes, PPP for BRTs with feeder services, HOV corridors Manage Demand: Parking std. & mgmt., bus use incentives, auto use linked taxes & pricing Expand Road Capacity: strategic links, exchanges Improve Public Transport: Demand responsive route & schedule planning, terminal plans, private service providers, new regulations & vehicle stds., integrated fare & collection Organize para-transit sector: taxis, moto-taxis, parking, IMT Infra for Freight and Bus: Terminals, regulations, PPPs Institution Bld.: Transit Agency, transport planning capacity Maintain Capacity of Existing Roads: Pavement maintenance, traffic mgmt. & operations, pedestrian & bicycle infra., on-street parking, access mgmt. Introduce Standards & Regulations: Road hierarchies, safety, vehicle inspections, driver training, emission control, axle load control Build Institutional Capacity: Traffic management, traffic law enforcement Institution Capacity TIME Building on success of actions while maintaining their consistency over time & flexibility to change

8 F U N D I N F G U N D I N G Regimes of competitive public transport services Gross Cost Contracting Govt. pays for services & collects revenues Net Cost Contracting Operator collects revenues Franchises Zone or route services under quality, price & quantity stds. with or without subsidy LESS REGULATION LESS REGULATION Management Contracting Govt. pays for managing its PT operations & services Concessions Exclusive service right with no payment but sometimes with max & min. fare & service conditions For market competition by Bus operators In market competition by Para-transit Quantity Licensing Designated service areas; Formation of operators association Quality Licensing Open Market

9 Establishing a competitive regime for private PT suppliers Conditions: Multiple suppliers (bus companies, cooperatives, etc.) with no collusion Separation of policy making from operations Separation between regulator & service planning & contracting agency Staff & skills within local &/or national agencies for service planning (route, service level, etc.) procurement for service contracting or franchising regulation (market entry/exit, fare, vehicle standards, safety, emission, etc.) monitoring (vehicle std., fare, maintenance, prescribed service levels & quality, customer satisfaction, etc.) enforcement (policing for safety, traffic regulations etc.) revenue collection & payment management (fare collection by operator/govt. or third party, contract payment, etc.)

10 Impact of changing environment on contracts Sustaining contract in a changing environment Passenger demands and service modifications External forces not under full control of contractors (e.g., inflation, vehicle import costs, etc.) Typical contractor concerns Oil price increase Contractor: bears increase up to a threshold Public authority: take the risk beyond the threshold on the basis of an indexation clause Major change in a competing infrastructure or services (e.g., BRT, MRT, new route or service) Contractor cannot bear that risk Contract terms renegotiated Fare evolution Contractor in a net-cost contract cannot bear a Government decision to reduce fares Contract terms renegotiated

11 Net-Cost Contracts Advantages/Disadvantages Advantages Incentive for operator to control costs Incentive for operator to increase revenue (not necessarily ridership) Public authority not required to monitor/control revenue collection Disadvantages Requires strong public oversight since there may be an incentive for contractor to reduce service level & quality & at times overcharge Potential for regulatory agency capture by interest groups such as co-operatives/ contractors (e.g., fares), politicians.. Cooperatives permitting non-scheduled services by its members cause chaotic & unsafe service delivery (speeding, overloading, random stops)

12 Kigali Bus Reform Net cost contracts for four zones RFTC (2 Zones), KBS, Royal Express & CBD for all Key Institutions: Bus service planning (City of Kigali), Regulations (RURA), Traffic enforcement (Min of Interior, Police), Fare collection (operators) Single fare KBS Rwf 100 to 200; monthly-rwf 8,000 (> 20% of say $60 of a traveler in Kigali) Operational Issues: Financial & organization capacity of operators Shortage of buses (almost 200) Signs of re-adjustments in each zone Association members behaving like independent operators Overcharging Failures to meet schedule Poor customer care enforcement (traffic rules, vehicles std.,..)

13 Building blocks for strengthening Kigali bus reform Ensure that each bus company/association serve as a cohesive service provider & not a collection of individual operators Allocate urban transport functions at appropriate level & build their capacity Separate PT regulatory role from its planning, contracting, pricing & performance monitoring or integrate them under a city transit authority Develop integrated fare system across all zones & explore differentiated fare options (distance, time, service quality & special social need based) Strengthen vehicle inspection & traffic regulation enforcement

14 Allocate strategic urban transport functions at appropriate level & build institutions RURA; MININFRA, Police RTDA, Kigali Transport Commission?, KTA Board (MININFRA)??, Kigali City Planning Dept., Police Source: World Bank, 2002, Cities on the move.

15 Kigali Transportation Strategy A compact, vibrant & transit oriented city 70% Public transport use with 80% population within 0.5 km walk Two priority BRT lines (center to south and center to East) 10% non-motorized use 30Km expressway One hr. connectivity to major employment nodes Key features of near- term transport strategy Traffic demand and supply management Bus services reform to promote scheduled route services under a franchise regime Integrated bus fare system Parking mgmt. & pedestrian & Bicycle facilities Traffic safety, Vehicle inspection Strategic road improvement (bypass)

16 Managing urban expansion & affordable living Visions Surabaya

17 The 5 D s: Urban form at various spatial level influences mobility (VKT) & choice of modes Density Density: Proximity of people and activities Diversity: Mix and balance of uses Design: Human scale and orientation Destinations: Access to outside activities Distance to transit: Nearest bus or train stop Design Diversity Destination

18 Improvement in each Design factor reduces vehicle Km travel (VKT) Observations 10% reduction in access (say distance or time) to central destination jobs reduced VKT by 2% 100 US city studies Combined effect of other 4Ds reflecting neighborhood design could have similar effect on VKT as destination D Neighborhood street layout, walking facilities & mixed use significantly reduce use of vehicles, increase public transport use and overall mobility of women, children and old 30 pathways build on steep hills for the residents of La Vega Barrio informal settlement of Caracas have improved access to jobs, schools and clinics; The Ahmedabad residents of smaller blocks, 1.2 ha, took 23% more walk trips compared to large block, 4 ha, residents;

19 Can transit investment influence urban form? A chicken & egg puzzle An integrated & well developed transit system can influence land market response at potential sites & intensify their development over time Transit oriented development Incremental Annual Property Value Increase, Places in Walking Distance to Transmilenio Station Versus Control* * Land Lines, Lincoln Institute of Land Policy, April 2008 issue

20 Influence of transit supply, planning & market response on urban form A corridor in Curitiba in 1974 and now Subway impact an Arlington, Va corridor

21 Building blocks for managing Kigali city expansion Preserve (land bank) & incrementally develop infrastructure (grid of primary & secondary roads, public transport, bike & walk paths, community services) to accommodate growth; Regularly adjust & review plans in response to market (land price, construction costs, rents) & infra. capacity (e.g., traffic impact of a development) in determining land use, densities & approval of developments Adopt land regulations that are responsive to affordability level, preference & cultural value of various population groups (e.g., floor area ratio, set backs, min. plot size) Upgrade progressively the access (public transport incl. BRT, bike/walk paths) & community services of existing settlements 21

22 Enhancing Rural Accessibility Key Challenges Improve high impact links of farm to market connectivity Build local & national level capacity for planning, prioritization & execution of investments & maintenance Resources

23 Approach to enhancing rural mobility and productivity Planning: Plan under a national rural roads strategy & in coordination with main road planning & agriculture development Connect rural settlements to market, schools & health centers; Enhance settlement accessibility & resource use through a network based planning & programming Consider maintenance needs along with investment planning Address reliability & durability in technology & design rather than speed & width of roads Ensure community & local participation including women Prioritization criteria: Population served, poverty level, agriculture potential in the catchment area, road condition, traffic level if known, costs of improvement, network synergy between main road & rural roads, road density

24 Rural mobility & productivity Sustainability considerations: Maintenance capacity & resources Community ownership & contribution (e.g., labor, resources) Choice of road design & standards (e.g., paths, tracks, sealed or unsealed road surface, geometrics, etc.) Promotion of IMT (bicycle, head loading, wheel borrow) & access to PT & para-transit (motorcycle, small trucks) to move goods & people Upfront TA & training for using labor intensive methods Resource mobilization: Central support with stepped up mobilization of local resources Organization: Planning, funding & coordination by a Central Rural Roads unit in the main road agency of the Min. of Transport/Infra. Participation of local communities (including women) & agriculture officers at the planning stage

25 Thank You