IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION The challenges of a mid sized city
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1 JASPERS Networking Platform Workshop: Organizational and Contractual Structures for EU funded Public Transport IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION
2 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE LOCAL CONTEXT THE CITY OF BURGAS Location: Black Sea coast; Population: more than citizens (the 4 th largest city of Bulgaria) The biggest and the most important economic, administrative and cultural centre in the Southern part of the Bulgarian Black Sea coast Direct foreign investments for ,16% against 2007 GDP + 30% against 2007 Unemployment rate: 4,8% Number of tourists + 36% against 2007 Number of new companies registered in Burgas +47% against 2007
3 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE LOCAL CONTEXT THE CITY OF BURGAS BASIC FACTORS: GROWING POPULATION GROWING TERRITORY TOURISM (mostly seasonal) A POINT OF INTEREST (because of the infrastructural development, festival culture) TRANSIT POINT FOR THE SOUTH EAST BLACK SEA COST THE BALANCE BETWEEN GROWING DEMAND AND EXISTING PHYSICAL AND INSTITUTIONAL STRUCTURES IS CHALLENGED.
4 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE LOCAL CONTEXT THE CITY OF BURGAS Public transport network: 2009 state of art - 18 bus lines and 1 trolleybus line serving the urban territory - 6 intercity bus lines within the municipal area - Good coverage of the network though complicated and with overlapping lines - Three bus lines operators - Services based on contracts with no clear obligations and mechanisms of control - Poor institutional arrangements - Basic passengers information and marketing - Product oriented approach
5 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE INTEGRATED URBAN TRANSPORT PROJECT FOR BURGAS AIMS at the overall modernization of public transport; ENVISAGES renovation of basic infrastructural components road infrastructure, terminals, bus stops, bicycle lanes, pedestrian crossings. COMBINES renovation of the bus fleet together with optimization of public transport network and traffic organizational measures; BASED on the BRT / BHLS concept; SETS the objectives of a long-term programme for modern urban mobility.
6 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE INTEGRATED URBAN TRANSPORT PROJECT FOR BURGAS The project is: DEVELOPED with the technical support by JASPERS FUNDED by the ERDF through the OP Regional Development and co funded by the national budget and municipal own funds IMPLEMENTED by Burgas Municipality Overall budget: 67 million Euro Starting date: Nov 2010 Deadline for implementation: Dec 2015
7 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE INTEGRATED URBAN TRANSPORT PROJECT FOR BURGAS PROJECT COMPONENTS BRT/ BHLS construction of segregated bus lanes Optimization of TRANSPORT NETWORK based on the BHLS Introduction of INTELLIGENT TRANSPORT SYSTEMS Construction of more than 50km BICYCLE LANES Renewal of BUS/ TROLLEYBUS FLEET Construction of PEDESTRIAN BRIDGES Reconstruction of BUS TERMINALS Construction of CENTRAL BUS STOP Reconstruction of BUS DEPOT AND DIESEL/ CNG STATION Feasibility studies for ITMS, BUFFER PARKINGS, INTERCITY TERMINAL
8 OVERALL MODERNIZATION OF PUBLIC TRANSPORT BUILDS ON CITY IDENTITY INSTITUTIONAL ARRANGEMENTS LONG TERM PROGRAMME FOR SUSTAINABLE URBAN MOBILITY IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE INTEGRATED URBAN TRANSPORT PROJECT FOR BURGAS BENEFITS
9 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS CHALLENGES TO BE ADDRESSED CAPACITY BUILDING SOUND BASIS FOR CITY OPERATOR RELATIONSHIP EFFECTIVE CONTROL STATE AID/ OVERCOMPENSATION ISSUES
10 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS S W O T STRENGTHS Transport is already recognized as a priority National authority support JASPERS technical assistance We started it together WEAKNESSES Hardly existing national practice A long process of national legislation harmonization Starting from a scratch OPPORTUNITIES Availability of funding and external expertise Combination of infrastructural and organizational measures Having a successful partner THREATS High dependence between the implementation of the project and the performance of institutional arrangements Setting up new models in old fashioned context
11 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS CAPACITY BUILDING Profound check for compliance with art 5, para 2 of Regulation (EC) 1370/ 2007 Integrated Project Management Unit Thorough analysis of possible options Tailored model for public transport management Working together with the operator On going consultations
12 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS SOUND BASIS FOR CITY OPERATOR RELATIONSHIP Clear roles and responsibilities for both parties Flexibility on operational basis Strict mechanisms of payment A good balance between public interest and business case
13 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS EFFECTIVE CONTROL Measurable indicators based on real performance Systems of stimulus and sanctions Control on both quantity and quality indicators Regularity of control
14 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS STATE AID/ OVERCOMPENSATION ISSUES Compensation based on actual performance Management of EU funded assets Sensitivity to overcompensation issues
15 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS THE PUBLIC SERVICE CONTRACT Signed on 10 June 2014 for a period of 10 YEARS between the CITY OF BURGAS, THE MUNICIPAL COUNCIL OF BURGAS and the in house operator BURGASBUS Ltd following the requirements as set in REGULATION (EC) 1370/2007
16 INSTITUTIONAL ARRANGEMENTS IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS 2009 WHAT IS THE DIFFERENCE 2015 Standard service contract with no clear obligations and mechanisms of control Retroactive services Poor institutional arrangements Product oriented approach Framework contract with defined roles and responsibilities, measurable indicators and clear commitments Proactive planning and implementation of the public service obligation Increased institutional capacity Customers oriented approach
17 IMPLEMENTING EFFECTIVE PUBLIC TRANSPORT SERVICE OBLIGATION THE PUBLIC SERVICE OBLIGATION THE MODEL OF BURGAS 2009 WHAT IS THE DIFFERENCE 2015 THANK YOU! Ruska Boyadzhieva Project manager Burgas Municipality
18 18 For info or further questions on the JASPERS Networking Platform, please contact: Massimo Marra JASPERS Networking and Competence Center Senior Officer ph:
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