91679 the world bank From Chaos to Order Implementing High-Capacity Urban Transport Systems in Colombia IBRD Results Synopsis In the past, Colombia faced urban transport problems that significantly lowered the quality of life of urban Colombians. Starting in the late 1990s, the Programa Nacional de Transporte Urbano helped transform Colombia’s urban transport system. The approaches under this program are now considered international best practice and have been replicated by cities around the world to address their transportation challenges. there was a low level of enforcement in the use of bus Challenge stops, this promoted boarding and alighting along all the curbs, reducing traffic flow. Public transportation in Colombia was traditionally per- ÔÔ There was a weak technical capacity and an unclear ceived as inefficient, unsafe and polluting. The streets of distribution of responsibilities in the transport sec- Colombian cities were crowded with obsolete buses which tor that hindered efficient regulation. There was also operated with disregard for public safety and in near chaos, a historical institutional weakness in the municipali- without organized bus stops. Several factors came together ties and in the central government in key functions to create this situation and its resulting negative influence of planning, managing, operating, monitoring and on the quality of life of urban Colombians, but two stand enforcing the rules and regulations that govern city out as structural causes to explain Colombia’s problems public transport. This deficiency likely reflected the with urban transport: important leverage of the transport sector in transit policy and the weak technical capabilities of the regu- ÔÔ The existing transport business model favored com- lating agencies. petition in the market and a fragmentation of service providers. Bus companies in Colombia were largely in- formal and operated on a cash-basis; they did not pay taxes or offer social security benefits to their employees. The Government’s Approach The revenue incentives for a bus company depended on the number of buses that it affiliated which translated In 1996, the central government and several municipalities into an over-supply of buses, mini-buses and vans in decided to create the Programa Nacional de Transporte Ur- the city. The traditional incentives for bus drivers –and bano (PNTU- National Urban Transport Program) which their wages—was the payment per number of boarded centered on the development of Bus Rapid Transit (BRT). passengers, which generated a fierce competition across The BRT investment strategy targeted high quality, bus- companies for passengers in the streets, creating safe- based rapid urban mobility at a fraction of the cost of rail ty risks for users and pedestrians. Furthermore, since systems. The most famous is Bogotá’s Transmilenio, concep- March 2010 2 Implementing High-Capacity Urban Transport Systems in Colombia tualized in 1998 which served as a model for the roll-out of ric tons of CO2 emissions a year. The program also has de- BRTs throughout Colombia’s largest cities. creased accident rates by 90 percent in the corridors where the system operates, scrapped more than 2,100 old buses, The PNTU supports ten Colombian cities—Barranquilla, and reduced noise levels by 3–10 decibels.1 Bogotá, Bucaramanga, Cali, Cartagena, Cucuta, Medellin- Valle de Aburrá, Pereira and Soacha. The IBRD, through 117,000 daily passengers or approximately 43 percent of a series of loans that date back to 1996, has being support- the city’s public transport demand benefit from Megabus, ing the PNTU by financing studies and the construction of BRT systems in six of the ten cities, including Bogotá, Bar- ranquilla, Bucaramanga, Cartagena, Medellin and Pereira. It has also provided technical advice on the establishment of From Chaos to Order—The Public Transit a consolidated regulatory and institutional framework for System in Bogotá with and without Transmilenio urban transport in Colombia. Results IBRD has supported the Programa Nacional de Trans- porte Urbano (PNTU) since 1996 by financing studies and the construction of Bus Rapid Transit (BRT) systems in six of the ten cities, including Bogotá, Barranquilla, Bucaramanga, Cartagena, Medellin and Pereira. It has Bogotá Cra. 10, 2009 also provided technical advice on the establishment of a consolidated regulatory and institutional framework for urban transport in Colombia. Users of these transport systems have significantly improved their daily lives, ben- efiting from an organized, regulated, modern, and reliable public transportation system that utilizes a modern fleet and less polluting fuels, all without disrupting existing traffic. To date, three BRT systems are operating: Transmilenio- Bogotá Autopista, 2009 Bogotá, Megabus-Pereira, and Mio-Cali (financed by the Inter-American Development Bank). Each day close to 1.4 million passengers—approximately 27 percent of the city’s “Transmilenio has given me many good things. First public transport demand—benefit from the Transmilenio of all, it takes me everywhere quickly, even though in Bogotá which currently has 84 km of segregated bus lanes people complain that it is too packed. The trip is in operation along with 114 stations. really fast. Second, there’s the comfort of having a guide to tell me which bus to take. Third, the bus According to data from 2009, riding Transmilenio results makes fixed stops as part of an itinerary; the other in average time saving of 32 percent (20 minutes) per trip buses would see I was blind and assume I was go- ing to get in to sign or beg.” Luis Fernando Rincon vis-à-vis the traditional bus system, more than 10 hours a Ababadia, User, Transmilenio, Bogotá (Taken from month for the average rider. There have been several other the Book Transport on a Human Scale. The World tangible benefits, including a reduction in carbon dioxide Bank) emissions. Transmilenio has been able to abate 0.25 Met- IBRD RESULTS 3 Pereira’s transport system. It generates average time saving for the lowest two income strata by 17 minutes per trip, BRTs—Agents of Change and has produced a 30,000-ton reduction in CO2 emis- sions.2 Bucaramanga’s Metrolinea, which recently began test operations, will in its first phase of operation serve 31 percent of the city’s public transport demand and will gradually move towards servicing 66 percent of all public transport demand. As such, users of these transport sys- tems have significantly improved their daily lives, benefit- ing from an organized, regulated, modern, and reliable public transportation system that utilizes a modern fleet and less polluting fuels. All without disrupting existing traffic. “I was a bus driver for 13 years, but I’ve worked the Moreover, associated reform of the bus companies helped last five months as a bus operator. Before that, my job was very stressful, especially because the work formalize the transport sector, modernizing the rolling day was very long. I complied with the owner’s pas- stock and dramatically improving existing labor conditions. senger limit and, and after 310 passengers, the prof- To implement BRT systems, a comprehensive reorganiza- its belonged to me. I made sacrifices to get them. tion of the sector was required to tackle the way traditional Now, my life has changed 100% because I work for transport companies serviced the market. This reorganiza- three hours, rest for one, and then I continue until I tion composes the following: complete eight working hours. I have time for myself, my family, to go to the doctor, to study. Also, soci- ÔÔ A competitive bidding process for the market, as op- ety now views me in a different light, and no longer posed to in the market, was created. Under this sys- looks down on me as before. Now I have goals set tem, traditional transport companies were granted for myself: owing a house and having a well estab- formal concession arrangements after they had gone lished family.” John Jairo Mina Vidal. Bus Operator through a process of association to become transit op- (Taken from the Book Transport on a Human Scale. erators. The World Bank) ÔÔ Drivers formalized their work contracts, working eight hours a day, instead of the typical 14 hours they had to work before the implementation of the BRT systems. ÔÔ Social and environmental teams were created in each They are now formal workers included in the social se- of these local BRT implementing agencies to develop curity network. and implement resettlement and environmental man- ÔÔ With the formalization of their activities, transport agement plans for all civil works, following the IBRD’s companies are part of the formal economic sector, safeguard requirements. paying taxes. ÔÔ Coupled with the creation of these managing com- This new institutional arrangement promoted the lead- panies, the duties of fare collection and other tech- ership of the municipality in the planning, execution nological components were also allocated through and operation of the system, and also provided for a new competitive bidding processes. organization of the transport sector characterized by ÔÔ BRT implementing agencies were created at the local clearly-defined institutional roles, formalized transport level and incorporated as state-owned public companies companies, and financially sustainable system operations. of each municipality, charged with managing civil work To date, and unlike the majority of mass transit systems in construction required for BRT infrastructure and subse- the world, Colombian BRT systems do not require opera- quently, for managing BRT operation and fleet control. tional subsidies. 4 Implementing High-Capacity Urban Transport Systems in Colombia the Bogotá Urban Transport Project, the IBRD also fi- Role of the IBRD nanced the construction of the first segregated bus corri- dor that would ultimately become a key milestone for the IBRD’s engagement with the Colombian government on development of Bogotá’s Transmilenio—a BRT system urban transport has been a long-term partnership that featuring exclusive lanes for the system’s buses, organized dates back to the mid-1990s. At that time, the govern- station access, a unified tariff and a pre-paid fare method. ment was pursuing a series of regulatory reforms to pro- Through this operation, the IBRD also financed and pro- mote private sector participation in infrastructure, and vided technical advice on the conceptual design (technical the city of Bogotá was embarking on a radical program to and institutional) of Transmilenio. Between 2002–2003, improve mobility. IBRD, through the Colombia Regula- the government established the policy and overall institu- tory Reform Project, first supported a series of regulatory tional framework for the development of the PNTU in and institutional reforms to prepare various sectors for 10 large and medium sized cities in Colombia, and estab- privatizations and concessions, and also financed the first lished the financial and technical commitments governing conceptual designs for the implementation of BRT sys- the collaboration of the national and local governments in tems in a number of Colombian cities. In 1998, through the PNTU. The national government contributes up to 70 percent of the total cost of the program nationwide, with financial contributions in each city depending on specific project characteristics and their financial/fiscal situation. The Transformation of Colombia’s Public Since 2004, IBRD has launched three Integrated Mass Transport Transit System (IMTS) projects to finance portions of the government’s transfers to six participating cities (Bo- gotá, Barranquilla, Bucaramanga, Cartagena, Medellin and Pereira) to enable them to build and implement BRT systems, and build greater institutional capacity at the na- tional and local level. The IMTS project umbrella has allowed the IBRD to pro- vide ongoing technical advice on a number of fronts: By as- sembling a portfolio of grants and donor funding to support activities such as the establishment of a consolidated regu- latory and institutional framework for urban transport in “Citizens of…three of the eight projects currently un- Colombia (PPIAF regulatory Reform Grant); The develop- der implementation are already enjoying the benefits ment of a carbon financing operation for Cartagena’s BRT; of improved transport systems: increased welfare, The development of universal accessibility BRT guidelines quality of life, mobility, security, competitiveness and for disabled people (through a Norwegian grant); The pi- development of their city. These projects have been loting of an impact evaluation of Pereira’s BRT, among oth- developed as a policy response of the government of ers. The government is now looking to the BRT system as Colombia to issues that relate to the operation of tra- ditional urban public transportation and its adverse an important contributor to climate change mitigation and impacts on the environment. While the (government) is analyzing how improvements to urban transport systems was planning for these mass transport systems, might contributes to reducing Colombia carbon footprint. and IBRD loan was identified as source of financ- ing. Thanks to these funds, the project has success- Moreover, the government is currently working on a series fully implemented.” Andres Uriel Gallego. Minister of of policy reforms aimed at addressing mobility problems Transport, Colombia (Taken from the Book Transport in twelve medium-sized cities through the Strategic Public on a Human Scale. The World Bank) Transportation Systems program. These initiatives are less IBRD RESULTS 5 infrastructure-intensive, but include policy packages with Development Bank. The Inter-American Development more instruments on the supply-and-demand management Bank is currently financing the BRT in Cali, and the side, including carefully planned fleet size and operations, de- Andean Development Bank has financed Bogotá’s Trans- velopment of modern public transport companies, integrated milenio Suba corridor, and will help implement Cucuta’s fare collection systems, central control and optimization of BRT system. traffic management. It is likely that the government will ask the IBRD and the IADB to jointly finance this new program. The PNTU also foresees a potential role for Bank-Interna- tional Finance Corporation. (IFC) collaboration through the IFC’s Subnational Facility Program. IFC is currently as- Timeline sessing a series of subnational operations with the local BRT Implementing Entities in Cartagena (Transcaribe), Barran- Since IBRD first began supporting Colombia’s public trans- quilla (Transmetro) and Medellin (Metroplus) to finance port system in 1996, more than seven IBRD operations the financing gaps incurred by the participating cities as a have contributed to the technical, operational and institu- result of a time mismatch between their revenue streams tional reform of the transport sector. Three Integrated Mass (National and local government income and transfers as Transit System (IMTS) Projects, amounting for USD 757 laid out in the co-financing arrangements) and their project million have supported the implementation of Colombia’s outlays (investment in civil works and financing costs). PNTU, and three other operations have tackled the mobil- ity problem in Bogotá. Timeline: Colombia a Model for Developing Country Cooperation ÔÔ 1996 — Bogotá Urban Transport Project ( July 1996– December 2001) — USD65 million The BRT approach has been replicated in many cities be- ÔÔ 1996 — Colombia Regulatory Reform Project (March cause it is a cost-effective transport solution that can be 1996–August 2004) — USD12.5 million implemented in a relatively short time. Today, the PNTU ÔÔ 2003 — Bogotá Urban Services Project ( June 2003– is regarded as international best practice in collaboration July 2011) — USD 100 million between central government and municipal authorities to ÔÔ 2004 — Integrated Mass Transit Systems Project (Sep- address the transportation ills endemic in many countries. tember 2004–March 2009) — USD250 million Since its inception, delegations from more than 20 coun- ÔÔ 2007 — Integrated Mass Transit Systems Project First tries, including China, India, Vietnam, South Africa, Ke- Additional Loan (December 2007–March 2010) — nya, Finland and the United States have visited Colombia USD 207 million to learn about the PNTU program. Similarly, multi-city ÔÔ 2009 — Bogotá Urban Services Project First Addition- transport programs are being developed in other countries al Loan (February 2009–July2011) — USD 30 million such as Mexico and Argentina with direct IBRD involve- ÔÔ 2009 — Integrated Mass Transit Systems Project Sec- ment and there has been a significant collaboration and ond Additional Loan (October 2009–March2012) — sharing of knowledge between Colombia and other devel- USD 300 million oping countries. Partners Towards The Future While IBRD has been the primary external financier of A solid partnership in transportation policy has been sus- the PNTU, the program has also been co-finance by the tained between the IBRD and Colombia since the project’s Inter-American Development Bank, and the Andean inception. This relationship is expected to continue until 6 Implementing High-Capacity Urban Transport Systems in Colombia In parallel, the IBRD has been working with the authori- ties in Bogotá to address the city’s public transport prob- lem in a sustainable manner. Through the Bogotá Urban Services Project (and the First Additional Loan), the IBRD is supporting the initial conceptual studies and engineering designs for Bogotá’s first metro line. This line will comple- ment and integrate with Transmilenio, which has reached high levels of congestion during peak hours. The city is also currently working on the Integrated Public Transportation System (IPTS) that aims to transform the remaining tradi- tional public bus system not served by Transmilenio (the remaining 73 percent of demand). The aim is to create an integrated bus system that ensures better regulation, opti- mization and rationalization of all the transit routes and the PNTU concludes in 2016. Total government com- services in the city, while also introducing lower carbon mitments from 2009 until PNTU’s completion in 2016 technologies and scrapping the old bus fleet. It will also lead amount to approximately USD 1.9 billion for nine of the to a change in the current scheme of bus registration and ten participating cities, of which UDS1.3 billion can be formalization of bus companies and operators. In this sense, drawn from IBRD financing. The government’s transfers it is also envisioned that the IBRD and the Inter-American have increased as a result of a broadening in the program’s Development Bank will collaborate to support the IPTS physical scope, including expansion of trunk corridors and through investment lending operations and resources from feeder routes to meet increased demand, renewal of pub- the Clean Technology Fund (CTF). lic service networks, and upgrading of public space, among others. In this regard, a subsequent follow-on operation Endnotes would likely be propose to continue IBRD support to the 1 Refer to www.transmilenio.gov.co PNTU until 2016. 2 Refer to www.megabus.gov.co IBRD RESULTS 7 learn more –– Ministerio de Transporte: http://www.mintransporte.gov.co:8080/transporte_urbano/ –– Megabus: http://www.megabus.gov.co –– Metrolinea: http://www.metrolinea.gov.co –– Metroplus: http://www.metroplus.gov.co –– MIO: http://www.metrocali.gov.co –– Transmetro: http://www.transmetro.gov.co –– Transcaribe: http://www.transcaribe.gov.co –– Transmilenio: http://www.transmilenio.gov.co –– Project Appraisal Document – Bogotá Urban Transport Project –– Project Appraisal Document – Colombia Regulatory Reform Project –– Project Appraisal Document – Bogotá Urban Services Project –– Project Appraisal Document – Integrated Mass Transit Systems Project –– Project Appraisal Document – Integrated Mass Transit Systems Project First Additional Loan Project Appraisal Document – Bogotá Urban Services Project First Additional Loan –– Project Appraisal Document – Integrated Mass Transit Systems Project Second Additional Loan MULTIMEDIA –– Video: “The World Bank and Colombia’s National Urban Transport Program” (8 min documentary). The World Bank. 2008 –– Video: “The National Urban Transport Program and the World Bank’s Safeguard Policies” (6 min documentary). The World Bank. 2009 –– Book: “Transport on a Human Scale”. The World Bank. 2009