Metrobus Case Study Lessons Learned and Policy Recommendations

Salvador Herrera and Jorge Macías

Metrobus BRT • Dedicated, confined bus

lanes.

• Enclosed stations.

• Electronic fee payment prior

to boarding.

• Large buses, either

articulated or bi-articulated.

• Advanced control systems

to regulate times between

buses, overcrowding, etc.

• Distinctive image.

Line 2 Line 3 Line 4

Eje 4

Sur

Eje 1

Pte

Down

town

Km 20 17 28 95

Passengers

(K/day)160 130 40 750

Stations 34 31 30 138

Terminals 2 4 4 13

Buses 96 54 54 365

43

3

161

Line 1

TotalInsurg

entes

30

420

Financing Schemes

Line 1 and 2 – Public contribution

to infrastructure and fleet, private

particpation for bus financing.

Line 3 – Payment-for-Services.

Line 4 – Financed via second tier

of beltway.

Line InfrastructureFare

collectionTotal

Private Public

1 1,277 327 109 1,713

2 850 255 85 1,190

3 1,200 250 - 1,450

4 450 250 - 700

3,777 1,082 194 5,053

Private

Public

Fleet

Costs in millions of pesos.

Source: Escalante, 2012.

Barriers Policy checklist for action

Barriers

1. Strategic goal setting and policy alignment

Current concessions scheme and the concessions

law.

Political power of concessionaires.

2. Enabling policies and incentives for green

investment

Lack of PPP Law.

3. Financial policies and instruments to attract

private sector participation

Contractual agreeements perpetuate perverse

incentives.

Concessionaires.

4. Harness public and private resources and

build capacity for a green economy

Lack of knowledge, capacity or experience with

similar projects.

Unclear decision making process.

5. Promoting green business and consumer

behaviour

Insufficient awareness campaigns.

Success Factors Policy checklist for action

Success Factors

1. Strategic goal setting and policy alignment

Civil society participation.

Clear clean air agenda.

Very effective champion - Claudia Sheinbaum.

2. Enabling policies and incentives for green

investment

CDM Financing.

Scrapping programme.

3. Financial policies and instruments to attract

private sector participation

Lack of sufficient government funding. Led to

innovative financing schemes.

4. Harness public and private resources and

build capacity for a green economy

NGO participation.

5. Promoting green business and consumer

behaviour

Commitment to emissions reductions.

Innovative business model.

Key Policy

Framework

Elements

Recommendations • Incentives alignment:

• Compliance with planning programmes (10 MB lines projected).

• Elimination of fuel subsidies.

• Creation of new financial instruments.

• Law to regulate metropolitan affairs.

• Legally regulated Cost-Benefit Analysis considering all relevant co-benefits.

• Thorough awareness campaign all the way from urban vision to real costs

of using cars.

Recent Advances

• Special Programme for Climate Change

• General Law on Climate Change

• Green Plan

• Law for Mitigation and Adaptation to Climate Change

• Law for Public-Private Partnerships

Conclusions

• Remarkable that the proyect exists, given all the initial barriers.

• There is a need for a stronger institutional, legal, financial and planning

framework to incentivise private investment in LCR transportation

solutions.

• Key for internalization of the high costs of private mobility solutions and

unsustainable urban development patterns.