2. Financing Public Transport
Identifying new sources of funding
+
Redefining investment priorities
+
Placing prices across transport modes right
+
Striking a balance between social and environmental objectives
and financial sustainability of public transport systems
2
What actions can different
levels of governments
take?
Analysis of different
countries and cities
3. Developing a national urban mobility policy
3
Country France U.K. Mexico Brazil India Colombia
Leading
Agency
Ministry of Ecology
Sustainable
Development and
Territorial
Management
(MEDAD) through the
General Directorate
for Sea and Transport
(DGMT)
Department of
Transport
Ministry of
Territorial,
Agrarian and
Urban
Development
(SEDATU)
Ministry of Cities,
through the National
Secretary of
Transportation and
Urban Mobility
(SeMob)
Ministry of
Urban
Development
Ministry of Transport through
the Sustainable Urban Mobility
Unit (UMUS) in co-ordination
with the National Planning
Department (DNP) which has a
subdirectory for transport in
charge of guiding urban
transport policies, plans and
projects towards economic,
social and environmental
development.
Major
Institution
al changes
Transformatio
n of the
Ministry of
Agrarian
Reform into
the Ministry of
Territorial,
Agrarian and
Urban
Development
(SEDATU) in
2013
Creation of the
Ministry of Cities
(2003) - Brazilian
Urban Train Company
(formerly in the
Ministry of Transport),
and Denatran, the
National Traffic
Department (formerly
in the Ministry of
Justice) were
incorporated to the
Ministry of Cities.
Document
(s) stating
the
National
Urban
Transport
Policy
Law for Guiding
Interior Transport
(LOTI-1982) and
subsequent laws
regarding various
aspects of life quality
(e.g. environment, air
quality, urban
renewal, etc).
Local
Transport Act
2008
The Future of
Urban
Transport
2009
Sustainable
Urban
Transport
Strategy
(EMUS), 2014
Urban Mobility Law
(12.587/2012)
National
Urban
Transport
Policy
Document
2006
(revised in
2014)
Plan Nacional de Desarrollo
2014-2018
4. National Framework for Urban Transport Master Plans
4
Country France U.K. Mexico Brazil India Colombia
Mobility
Master
Plans
Plans du
deplacements
urbaines (PDU)
Local transport
plan
Plan Integral
de Movilidad
Urbana
(PIMUS)
Planos de Mobilidade
Urbana (PMU)
Comprehens
ive Mobility
Plans (CMP)
Planes Maestros de Movilidad
Binding
Mechanisms
Legal obligation for
all agglomerations
> 100 000
inhabitants to be
revised every 10
years.
Development of
local transport
plans is an
obligation
established by the
Local Transport Act
2008;
Proving alignment
with the Local
Transport Plan is
central in the
bidding process for
obtaining funds
from the Local
Sustainable
Transport Fund
Funds from
the Federal
Programme
for
Supporting
Mass
Transport are
subject to the
development
of a PIMU
Developing and
presenting PMUs to
the Ministry of Cities is
required by the
National Mobility Law
for all townships and
cities >20 000
inhabitants.
-Cities do not have the
right to receive
transport funds if they
do not present their
PMU to the Minitry of
Cities.
Urban areas
need to
develop a
CMP for
being
eligible to
national
funds
through the
Jawaharlal
Nehru
National
Urban
Renewal
Legal requirement
Guidelines
and
Evaluation
of Planning
Instrument
s by
Leading
Agency
DfT issues
Guidance on Local
Transport Plans
There are no
official
guidelines for
the
development
of PIMUS
-SEDATU
does not have
a role in
evaluating
PIMUs
The Ministry of Cities
issues guidelines for
the development of
PMUs
-The Ministry of Cities
has also the
responsibility of
evaluating PMUs
5. National programmes for financial support to urban mobility
5
Country France U.K. Mexico Brazil India Colombia
Name/ year
/type of
support
TCSP,
1994
A. Local
Sustainable
Fund, 1968
B. Major
Schemes
Programme,
1968
A. Infrastructure
Programme-Habitat
infrastructure and public
space renewal
components, 2016
B. Federal Programme
for Supporting Urban
Mass Transport
(PROTRAM)*, 2008
Growth acceleration
programme-Mobility in
Large Cities, 2007
Jawaharlal Nehru
National Urban
Renewal Mission
(JNNURM)*, 2005
Urban Transport National
Programme, 1996
Eligible modes Mass
transit
projects
(BRT,
LRT,
metro)
Surface
transport (in
the case of
mass transit
projects it
includes
BRT, LRT
and
suburban
rail).
A. - roads to improve
accessibility,
connectivity and safety
for pedestrians, cyclists
and public transport
users; and pedestrian
and cyclist
infrastructure,
intermodal transport
areas, and infrastructure
related to public
transport accessibility
(e.g. stations).
B. Mass transit projects
Mass transit projects
(metro, BRT, LRT,
Suburban rail)
Mass transit (BRT
only) and other
type of transport
infrastructure
(e.g. road
enhancement,
flyovers, etc)
Larger cities: mass transit
projects (only BRT) +
investment in infrastructure
for integrated transport
systems (e.g. feeder
services, stops, multi-modal
integration centres, etc).
Smaller cities: projects for
integrated transport systems,
not based in mass transit.
Range of eligible projects
(e.g. rehabilitation of road
infrastructure, urban
renewal, etc).
Max. support
from national
government
A. up to 50% of the
project with the local
government covering at
least 50% of the project.
B. Up to 50% of
previous study costs and
up to 50% of
infrastructure costs
(with at least 34% of
private investment)
95% with minimum
5% co-financing from
local government and
no minimum financing
from private sector
Type of
national
support
Grants
and
loans
Grants A. Grant; B. Loans Grants or combination
of grant and loan
Grants or
combination of
grant and loan
Co-financing grants
6. Framework for metropolitan transport authorities
6
Consolidation of transport authorities with a metropolitan scale and multi-modal planning and
management capacity has demonstrated the most significant progress towards the
development of integrated transport networks capable of improving accessibility and
sustainable urban mobility.
In the UK, Transport for London (TfL) is a statutory body, created in order to develops and apply policies to promote
and encourage safe, integrated, efficient and economic transport facilities. The TfL is in charge of the operation of public
transport, highway construction and management, as well congestion charging and vehicle licensing.
In Vancouver Translink, a statutory authority created through the Greater Vancouver Transportation Authority Act, is
responsible for all aspects of municipal transportation including major roads and bridges. Translink was able to enlarge its
funding base by gaining political support from municipalities, which agreed to the transfer of property tax and several
transport-related charges like the fuel tax and the parking sales tax to the metropolitan transport authority.
In France Syndicat des transports d’Île-de-France (STIF) is responsible for public transport planning, including
defining general operational and service level targets, setting fares and negotiating performance-based contracts with
public service providers. STIF also develops an Urban Mobility Plan (PDU) which includes land-use and transport plans that
guide all subordinate levels of government. A dedicated transport tax (Versement Transport), which is a dedicated tax
levied on employers and based on payroll mass is an important source enabling STIF to extend and maintain the public
transport network and non-motorised transport facilities.
Key conditions for successful authorities:
- Secure capacity to develop integral strategies (beyond public transport)
- Develop an institutional arrangement that guarantees integrated land-use and transport
planning
- Build internal financial and technical capacity
- Legal authority and political support
7. Working towards high quality, financially
sustainable public transport systems
• Regaining regulatory power and capacity by transport authorities
- Authorities that have not been active regulators need to build expertise—they
need adequate staff
- Bus reform is key: this needs to be done with the aim of setting clear rules for
granting concessions (competitive tendering is the best way of ensuring
efficiency) as well as for setting and adjusting tariffs (providing certainty to
private providers); regular, planned and modest fare adjustments rather than
unexpected and significant increases after long periods with fixed tariffs.
• Improving methodology for granting subsidies
- Shifting towards more effective targeted subsidy schemes (i.e. SISBEN in
Bogota) which build on new technologies in place and existing poverty
alleviation frameworks
- Have a clear subsidy policy rather than a no-policy subsidy, followed for ever-
lasting “extraordinary” support.
7
8. Setting prices for private modes right
• Double purpose: charging private vehicles to reflect externalities (climate
change, air quality, public space, etc.) is necessary for making public
transport competitive; at the same time these funds can be used for
investment in public transport. In many cases this can raise public support
for increasing or introducing new charges.
• Among others: fuel taxes, inspection and maintenance charges, road pricing,
parking charges.
• These can be national or local charges, so the decision to channel them to
public transport might be in different levels of government; in some cases
both national and municipal authorities have agreed to cede these funds to
the metropolitan transport authority.
8
9. Exploring new sources
• Land-value capture (e.g. London Cross-rail, Metrovivienda)
• Funds from advertising space and/or private sponsorship (i.e. Velib’
in Paris)
• Transport NAMAs:
- Kenya – Mass Rapid Transport System for Nairobi
The NAMA Support Project for Nairobi supports first bus line implementation in order to initiate
transformational change towards a sustainable urban mobility system
- Indonesia Sustainable Urban Transport Program Indonesia (NAMA SUTRI)
Sustainable Urban Transport Fund will co-fund transport demand management measures (such as ‘park-
and-ride facilities, sidewalks, bicycle networks)’. The project will also assist in reviewing Transport
Master plans and establishing national investment plans.
- Peru Sustainable Urban Transport NAMA Support Project
Transport provision and vehicle fleet optimisation are two building blocks of the NAMA Support project.
It focuses on assistance in establishing strong institutional set-up; expanding PT infrastructure and
building better policy framework.
- Colombia Transit-oriented Development (TOD) NAMA
The project supports the transformation towards transit-oriented development, reduction of car traffic
and improving air quality.
9
10. Intergovernmental Organisation with 59 member countries (25
non-OECD)
• Annual Summit: 1100 participants from 71 countries (2016)
• Evidence-based research and analysis
• Data and statistics
• Identification of best-practice policies
• Main Activities:
- Roundtables
- Working groups
- Case Specific Policy Analysis projects
- IRTAD and ITF Transport Outlook
- Horizontal collaboration with OECD directorates
International Transport Forum (ITF)
10
11. The ITF has been conducting work on how to improve policies
with a focus on unlocking benefits of public transport and non-
motorised modes. In particular several publications were
produced:
• Discussion of subsidy schemes and how to balance financial sustainability and
affordability in public transport (discussion is based on the case of Bogotá, Colombia in
the framework of a roundtable on Income Inequality, Social Inclusion and Mobility
(https://www.itf-oecd.org/balancing-financial-sustainability-and-affordability-public-transport-case-bogota-
colombia)
• Discussion of parking policies and bus reform in the framework of the OECD Territorial
Reviews: Valle de México (pp. 165–182) (http://www.oecd.org/mexico/oecd-territorial-reviews-
valle-de-mexico-mexico-9789264245174-en.htm)
• Overview of international metropolitan authorities in the Multi-dimensional Review of
Peru (pp. 99–101; 108–110) (http://www.oecd.org/countries/peru/multi-dimensional-review-of-peru-
9789264264670-en.htm)
• Discussion of State Roles in Providing Affordable Mass Transport Services for Low-
Income Residents (http://www.oecd-ilibrary.org/transport/state-roles-in-providing-affordable-mass-
transport-services-for-low-income-residents_5kg9mq4f4627-en;jsessionid=cica0p4iu2c1.x-oecd-live-02)
• Shifting Towards Low-Carbon Mobility (https://www.itf-oecd.org/shifting-towards-low-carbon-
mobility-systems)
11
12. Thank you
Aimée AGUILAR JABER
T + 33 (0)1 45 24 92 20
E aimee.aguilarjaber@oecd.org
Postal address
2 rue Andre Pascal
75775 Paris Cedex 16