BRT Developments and PPP in Public Transit in India

1. APTA – Bus Rapid Transit Conference May 4th-6th, 2009, Seattle BRT Developments and PPP in Public Transit in India Ajai Mathur Chief Operating Officer, Urban Mass Transit Company

2. National Urban Transport Policy - 2006 • Integrated land use and transport planning • Focus on public transport and NMT • Coordinated planning through a Unified Metropolitan Transport Authority • Innovative Financing • Use land as a resource • Greater involvement of the private sector • Cleaner fuels • Capacity building – demonstration projects

3. National Urban Renewal Mission • Established a partnership for the national, provincial and local governments to finance the needed urban infrastructure • National government commits $ 12 billion over a 7 year period • Linked to prescribed reforms

4. Thus : Established a Framework for action National Urban Transport Policy Created an incentive for implementation National Urban Renewal Mission

5. Initiatives taken by States • Several cities took up projects public transport enhancement projects • Among the six major cities only Delhi has focused heavily on BRT. Rest focused on metro rail systems • A range of the other million plus cities have taken up BRT • 11 cities currently implementing BRT – others on the anvil

6. BRTS Overview

7. Sequence of BRT Projects • Delhi and Ahmedabad started planning their BRT projects well before the NUTP or JNNURM were launched • Indore introduced a structured bus service and then came up with a proposal for upgrading to BRT • Pune and Jaipur were the other cities that took up BRT in the first phase • Subsequently several others followed – Bhopal, Vijaywada, Pimpri-Chinchwad, Rajkot, Surat, etc

8. Experience in Implementation so far

9. Status • Work in progress in all cities • Two cities have started pilot operations • One city (Indore) started bus services and then moved to BRT • Others at various stages of implementation • Several problems being faced – need to be dealt with patiently

10. Problems • Few knew what it is • Lack of design consultants • Distant role models – Bogota and Curitiba • Inadequate Right of Way • Growing vehicular traffic • Poor image of the bus • Difficulties in operational plan design

11. Public Reaction • Reality – BRT impacts a very influential section of society • Very adverse public reaction when pilot BRT operations commenced in Delhi and Pune • Cities were not prepared for this • Adverse impact created doubts in other cities as well • Situation stabilizing – outlook positive

12. Lessons • Be prepared for adverse reaction • Public awareness very important • Start with simpler corridors to learn • Pedestrian access • Importance of a good operational plan • A local champion is critical to success

13. BRT – Typical Model

14. Examples of PPP in Public Transit in India City Bus Service – Indore Metro Rail System - Mumbai

15. Indore City Bus Service - Structure • Indore City Transport Services Ltd (ICTSL) incorporated as a public limited company • ICTSL manages the public transport system in Indore in public- private partnership • Bus operations and other services contracting or franchised to private sector • ICTSL provides common services • Regulation through Regional Transport Authority

16. Indore City Bus Service - Revenues The main sources of revenue are : • Fares • Sale of passes • Advertising on buses • Advertising at bus stops • Route authorization fee Revenue shared as under: • 100% fare box collection with operators • 80% of proceeds from sale of passes to operators;20% to ICTSL • 60% revenue from advertising on buses with operators;40% with ICTSL • 100% revenue from advertising at bus stops with ICTSL • 100% route authorization fee with ICTSL

17. Indore City Bus Service – Present Status • Fleet of 110 buses, plying 24 routes on a network length of 277 km, carrying about 110,000 passengers per day. • In its 3rd year of operation it continues to be a self sustaining financially viable system. • ICTSL is planning to add 170 buses to its fleet in 2009 Source: Embarq

18. Indore City Bus Service – Inadequacies • No full time CEO • Inadequate technical staff to monitor performance of bus operations • Lack of technical and managerial expertise in route planning and scheduling • No system for user feedback

19. Mumbai Metro • In the first phase 2006 – 2013 total 62.79 km Metro lines I,II & III are planned • Line I-11.07 km Versova-Andheri-Ghatkopar • Line II-31.87 km Charkop-Bandra-Mankhurd • Line III-19.85 km Colaba-Bandra

20. Mumbai Metro – Line I • Total length 11.07 km elevated • Implementing agency MMRDA • Preferred bidder selected through open competitive bidding process • Concession Agreement signed in 2007. A SPV Mumbai Metro One Pvt. Ltd incorporated by preferred bidder & MMRDA • MMRDA to have 26% equity interest in the SPV payable in cash • Concession period 35 years on DBFOT basis • Construction work in progress

21. Mumbai Metro – Line I – Financing Structure

22. Mumbai Metro – Line II • Total length 31.87 km elevated • Estimated project cost at 2008 price level US$ 1.53 billion • Implementing agency MMRDA • Concessionaire to be selected through open competitive bidding on DBFOT basis • Bidding process is on • VGF by GOI up to US $ 0.31 billion. (20% of cost) • Concession period 35 years

23. Thank You