URBAN TRANSPORT POLICY CHALLENGES-PRACTITIONER S PERSPECTIVE
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1 FONDO NACIONAL DE INFRAESTRUCTURA URBAN TRANSPORT POLICY CHALLENGES-PRACTITIONER S PERSPECTIVE Francisco Quiñones Manager of PROTRAM Programa de Apoyo Federal al Transporte Masivo February
2 GROWING URBANIZATION IN BIG CITIES In 990 Mexico had 2 cities with more than 500,000 inhabitants reaching a 34 million population In 200 Mexico had 35 cities with more than 500,000 inhabitants now with a 60 million population Mexico City more than 20 millions 3 cities between 2.5 and 4.5 millions 7 cities between and 2 millions 22 cities between 500,000 and million These cities are growing to periphery with lower density, demanding more and more transportation Now 53 % of the Mexican population lives in these big cities and these trend will remain. To achieve a sustainable urban development the city plan needs to promote a higher density where the transport projects will play a relevant role.
3 UNSUSTAINABLE TRENDS IN URBAN TRANSPORT The chronic urban transport problem is affecting the competitiveness and quality life of the cities. Automobiles grow 8% annually with excessive use Low quality and inefficient public transportation Chronic congestion of urban roads Growing carbon emissions (20%) Big investments in urban highways Limited investment in massive transport Low tariffs for social inclusion Car fleet in México ,000,000 20,000,000 5,000,000 0,000,000 5,000, In order to achieve a sustainable urban mobility, it s a priority to promote transport projects to reduce the excessive use of private cars. 2
4 NATIONAL INFRASTRUCTURE PROGRAM The Federal Government created the National Infrastructure Program The program foresees an investment of just over 2.5 billion pesos (billions of pesos) (% total) Sector Total Railways 2% Roads 287 Roads % Ports 3% Airports 2% Railways 49 Ports 7 Airports 59 58% private resources Hydrocarbons 47% Telecom % Water 202 Telecommunications 283 Electricity 5% Water 8% Electricity 380 Hydrocarbons,20 Total 2,532 Source: National Infrastructure Program
5 DRIVEN INVESTMENT From , driven investment rise 4.5% of GDP, from an average rate of 3.5% during the period Infrastructure investment as % of GDP Average % * Average % * Amount approved for 20. Source: Fourth Report of the Government and Ministry of Finance 4
6 TOTAL AMOUNT AUTHORIZED 95,675 MILLION PESOS 2008-DECEMBER 20 Approvals by por Sector (Millions pesos) 7% 8% 9% 60% 3% % 2% Roads Urban Transport Agua Funds Tourism DUIS Others Note: Authorizations include cancellations 5
7 FEDERAL FUNDING FOR URBAN TRANSPORTATION PROJECTS To promote a SUSTAINABLE URBAN MOBILITY especially in big cities the Federal Government gives financial support to the state and municipal governments and concessionaries for MASSIVE TRANSPORT PROJECTS NATIONAL INFRASTRUCTURE PROGRAM (Programa de Apoyo Federal al Transporte Masivo) PROTRAM BANOBRAS Urban Transport Transformation Project UTTP CTF & World Bank Grants for preparing project up to 50% Grants for Infrastructure investment up to 50% Reimbursement support (Guarantee and subordinated credit) Credits for studies Credits for infrastructure Credits to purchase buses with low gas emission 6
8 URBAN MASSIVE TRANSPORT APPROACH.Sustainable Urban Mobility Plan 2.Urban Transport Authority 3.Transforming transport organization 4.Integrated transport systems (trunkfeeders) 5.Transport trunk lanes 6.Rational use of urban roads 7.Efficient buses with low carbon emissions 8.Centralized control technology (ITS) 9.Integration fare and prepaid card 0. Financial support for transport projects TRANSPORT PROJECTS (PPP) High social profitability Funding with local governments Private investment participation 34% Mainly for cities with more than 500,000 inhabitants TECHNICAL OPTIONS Bus Rapid Transit (BRT) or similar Light Rail Transit and Trams (LRT) Suburban trains and Metros 7
9 GUIDELINES TO PREPARE AND EVALUATE THE PROJECTS. Urban transport problem analysis 2. Integral sustainable urban mobility plan 3. Technical feasibility study (project, demand and costs) 4. Cost benefit analysis 5. Financial analysis and project structured finance 6. Transport authority and PPP scheme proposed PROTRAM can give a grant up to 50% for preparing these studies 8
10 POLICIES, GUIDELINES AND METHODOLOGIES BASIC DOCUMENTS PROTRAM (Available on the website of the National Infrastructure Fund BANOBRAS).-PROTRAM GUIDELINES 2.-GUIDE FOR SUBMISSION AND EVALUATION 3.-FRAME environmental and social safeguards (MASTU) 4.- MANUAL OF OPERATION OF THE PTTU BANOBRAS CREDITS (IBRD and CTF) PREPARATION OF DOCUMENTS FOR 202 PROTRAM 5.-MASSIVE TRANSPORT PROJECTS GUIDE FOR ANALYSIS OF COST-BENEFIT 6.- PLANS COMPLETE GUIDE TO SUSTAINABLE URBAN MOBILITY (PIMUS) 7.- MODEL OF FINANCIAL SUPPORT AGREEMENT 8.-TRUST MODEL PROJECT 9.-BASE INDICATORS DATA Urban Transport Project 0.- COST PARAMETERS POLICY PAPER ON URBAN TRANSPORT. PUBLIC POLICY SUSTAINABLE URBAN TRANSPORT. With SCT, World Bank 2. FEDERAL BILL OF SUSTAINABLE URBAN AND SUBURBAN TRANSPORT 9
11 CYCLE OF PROJECT APPROVAL PIPELINE 40 PROTRAM S PROJECTS PHASE : Planning & Identification PHASE 2: Preparation PHASE 3: Evaluation PHASE 4: Bidding and financial closure PHASE 5: Follow up monitoring Projects conceptual ideas 0 Projects at feasibility analysis Projects in evaluation 0 Authorized projects 4 Construction or operation projects 5 Eligibility PROTRAM Application support for Investment Authorization support for PROTRAM Support Agreement Trust Concessions Works contracts Credit Project implementation and benefits 0
12 BRT CORRIDOR COMPONENTS LANE WITH EXCLUSIVE TRACKS STATIONS AND TERMINALS HIGH-CAPACITY BUSES WITH LOW GHG EMISSIONS INTELIGENT SYSTEMS: control, collect, ticketing and information
13 PUBLIC PRIVATE PARTNERSHIP SCHEME PPP PROJECT FOR A CORRIDOR BRT MASSIVE TRANSPORT CORRIDOR BRT CORRIDOR: 5 km Investment,540 MP Demand 200 mil pass/day Tariff $7. PUBLIC WORK BY THE STATE Public Investment 620 MP 00% Public Resources Segregated road for mass transport Bridges and under passes FNI Grant up to 50% 2. CONCESION OR PPP OF INFRASTRUCTURE Private investment MP 380 (CAPITAL AND CREDIT) Source of payment = 30% of fare * Stations and terminals * Control and dispatch system bus * Collection systems with prepaid card FNI -Credit Guarantee to Work 50% 3. CONCESION FOR MASSIVE TRANSPORT Private investment MP 540 (CAPITAL AND CREDIT) Source gives Fee Payment = vehicle-km * Purchase of buses * Operation and maintenance of equipment FNI-Credit Guarantee for 50%Team 2
14 OPERATION TRUST MAKES BANKABLE PPP PROJECT Priority Collecting systems with paying machines and systems inside the bus stations Prepaid smart card for passengers Revenue and expenditure concentration trust and payment source Concentration and Income Distribution 2 3 Payment fee for bus-km $ Transportation Licensee 60 al 70% 25 al 30% Income participation Infrastructure Licensee 5 al 5% Remainder State Government Project sponsor Credits for buses Service Operation Maintenance Capital recovery Credits for terminals and stations Collection system Control of operation Capital Recovery Planning and Monitoring Guarantee Fund Conservation lanes 3
15 AUTHORIZED PROJECTS PHASE 4-5 IN IMPLEMENTATION Number URBAN TRANSPORT PROJECT BRT Chihuahua 2 BRT Mexicali APPROVED BRT Monterrey 4 BRT Puebla 5 BRT Acapulco 6 BRT Chimalhuacán 7 BRT Lechería-Ecatepec 8 BRT Valle de Toluca 9 FS Buenavista-Cuautitlán Reestructura APPROVED 20 4
16 PHASE 3 EVALUATION Number PROJECTS BRT Tampico-Altamira 2 BRT Tijuana 3 BRT Villahermosa 4 Pre-metro Monterrey Línea 3 5 Metrobús Línea 4 Buenavista-Centro-Aeropuerto 6 Metrobús Línea 5 Río Remedios-G. Vaqueritos 7 Tren Ligero Guadalajara-Tlajomulco 8 Tren Suburbano - 3 Chalco-Sta. Martha-Const.97 9 BRT León Optibús 3ª etapa 0 BRT Mérida 5
17 PIPELINE 35 Large Cities group to 59 million inhabitants (53% of the Country) 40 Urban Mass Transportation Projects in 28 Large Cities MA more than million Population (thousands of people) Valle de México 20,37 Guadalajara Monterrey Puebla 4,434 4,080 2,668 Number of Projects MA 750,000- million Population (thousands of people) Number of Projects Mérida 970 Mexicali 936 Aguascalientes 932 Cuernavaca MA 750,000 a 500,000 Orizaba-Córdoba Reynosa-Rio Bravo Population (thousands of people) Saltillo 725 Minatitlán- Coatzacoalcos 703 Number of Projects 0 0 Toluca Tijuana León Cd. Juárez ZM la Laguna Querétaro San Luis Potosí,847,75,60,328,26,097,04 TOTAL 4, Acapulco 863 Culiacán 859 Tampico 859 Chihuahua 852 Morelia Veracruz 80 Hermosillo 784 Villahermosa 755 TOTAL 0,295 0 Cancún Xalapa Tuxtla Gutiérrez Oaxaca Durango Poza Rica Pachuca Tlaxcala-Apizaco TOTAL 7,
18 ROADS OF MEXICO BRT s FFCC y Tranvías 7
19 OPPORTUNITIES FOR IMPROVING IMPLEMENTATION OF TRANSPORT PROJECTS Establish comprehensive public policy on urban mobility Densification of cities / mode of transport addresses urban development Rationalize private car use Non-motorized mobility facilities Efficient modal integration Convergence and consistency / urban development policy, transport, roads. Long-term planning Strong planner and regulatory body of urban transport Innovative financing of urban transport in small towns 8
20 FONDO NACIONAL DE INFRAESTRUCTURA URBAN TRANSPORT POLICY CHALLENGES-PRACTITIONER S PERSPECTIVE Francisco Quiñones Manager of PROTRAM Programa de Apoyo Federal al Transporte Masivo February
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