2017 POLICY REVIEW of the DEVELOPMENT of the PUBLIC TRANSPORT SECTOR in KAZAKHSTAN 01 Prepared by ETC Transport Consultants Gmbh Martin-Hoffmann-Str

UNDP/GEF Project ‘City of Almaty Sustainable Transport’

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN

2017 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 01 prepared by ETC Transport Consultants GmbH Martin-Hoffmann-Str. 18 12435 Berlin

In cooperation with

BDC Consulting 33 , Bukhar-Zyrau 050013, Almaty

The review was prepared on the request of the UNDP-GEF Project «City Almaty sustainable transport» with the aim of promoting reforms in improving management and financing of the public transport sector in Kazakhstan. During the preparation of this review, a survey of public transport enterprises and decision-makers on the development of public transport policy was conducted. Preliminary discussion took place in July 2017 in Almaty. Review was intended for civil servants, managers and experts in the field of urban transport, as well as for all interested in sustainable urban development. No part of this publication may be used, reproduced or transmitted in whole or in part in any form or by any means,electronic or mechanical, for public use, without permission in writing from the copyright holder. Data published herein is provided “as is” without warranty of any kind, express or implied, including any warranties of merchantability, fitness for a particular purpose and non-infringement. UNDP takes no responsibility as to the accuracy or completeness of the data. © UNDP-GEF Project «City Almaty sustainable transport» 2017 TABLE OF CONTENTS

1. Introduction 9 2. Overall data collection and analysis techniques 10 2.1 Overall methodological approach to data collection 10 2.2 Data availability and its consequences for public transport (PT) 10 2.2.1 Socio- economic data 11 2.2.2 Key public transport data 12 2.2.3 Environmental data 12 2.2.4 Legal data 13 2.2.5 Analysis of Key stakeholders view 14 2.2.6 Recommendations for urban public transport related selection, collection and evaluation of socioeconomic data in Kazakhstan 15 2.2.7 Key recommendations for P/T Data 15 2.2.8 Key recommendations for environmental data 16 2.2.9 Key recommendations for legal data 16

3. Benchmarking analysis 17 3.1 Methodological approach 17 3.1.1 City selection 17 3.1.2 Indicator selection and methodological limitations 18 3.1.3 Data source identification and selection 19 3.2 Comparative socio- economic analysis 19 3.2.1 City size and population 19 3.2.2 GDP per capita and unemployment rates 20 3.2.3 Urban population growth 22 3.3 Comparative analysis of urban transport structure 24 3.3.1 Car ownership 24 3.3.2 Modal split 26 3.3.3 Public transport demand in Kazakh cities 28 3.4 Comparative analysis of public transport organization 29 3.4.1 Organizational forms in Public transport 30 3.4.2 Task of Public Transport Authorities in benchmark cities 32 3.4.3 Public transport Organization in Kazakh cities 33 3.5 Tariffs and ticketing system 35 3.5.1 Tariff and Ticketing in Kazakhstan 35 3.5.2 Analysis of Tariff and Ticketing Systems in Europe 36 3.6 Environmental issues 37 3.6.1 Environment and noise 37 3.6.2 External Costs of transportation 41

4. Tendering and contracting in Public transport 44 4.1 Current Public Transport Procurement Practices in Kazakhstan 44 4.2 Public Transport Contracts in Kazakhstan and Best Practice examples 46 4.3 Financing sources and spending in Europe 49 4.4 Key recommendations 50

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 1 5. Financing in Public transport 53 5.1 Current P/T Financing in Kazakhstan 53 5.2 Main findings regarding funding from international benchmark analysis 56 5.2.1 Funding sources 56 5.2.2 Innovative approaches to P/T financing 58 5.2.3 Possibility of Private Sector Participation in Kazakhstan to close the funding gap 58 5.2.4 Challenges for Public Private Partnerships (PPP) in Kazakhstan 60 5.2.5 Introducing school bus system in a long prospective in Kazakhstan 61 5.2.6 School transportation in international best practice 61 5.2.7 Recommendations for school bus system in Kazakhstan 62

6. Legal aspects of public transport organization and operation 63 6.1 Legal data provision 63 6.2 Overview of regulations and policy in Kazakhstan 64 6.2.1 Legal Framework 64 6.2.2 Overview of Plans and Strategies of the Government of Kazakhstan 64 6.3 Overview of regulatory procedures in Europe 64 6.4 Central issues for legal framework in Kazakhstan 65 6.5 Key recommendations 66 6.5.1 Overarching efforts 67 6.5.2 P/T Organization at national level as well as regional and city level (Akimat) 67 6.5.3 Competitive Tendering 68 6.5.4 Financing and funding 69 6.5.5 Tariff differentiation and regular review/actualization 70 6.5.6 Safety and security 70 6.5.7 Environmental issues 70 6.5.8 Paid Parking 70

7. Key performance indicators (KPI) in Public transport 71 7.1 Описание общего практического подхода 71 7.2 Key Recommendations for KPI approach 76 7.2.1 Groundwork 76 7.2.2 Data-oriented, practical approach 76 7.2.3 Long-term outlook 76

8. Scenario development 77 8.1 Methodological approach 77 8.2 Influencing factors 79 8.3 Scenario 1: Pessimistic scenario 80 8.4 Scenario 2: Trend scenario: Realistic changes under CAST project objectives 81 8.5 Scenario 3: Optimistic scenario 82

2 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 9. SWOT analysis 84 9.1 Methodological approach 84 9.2 Analysis per Category 84 9.2.1 General policy development in Kazakhstan 84 9.2.2 Proposed Public Transport Service Contracts 85 9.2.3 Public transport plans and strategies 85 9.2.4 Public transport Financing, Organization and Capacity Building 85 9.2.5 Environmental issues 86 9.2.6 Transport and Infrastructure developments 86

10. Strategic choice analysis 87 10.1 Methodological approach 87 10.1.1 Policy rating 87 10.1.2 Policy clustering 89 10.1.3 Scenario Selection 90 10.2 Policy implementation strategy 90 10.2.1 Policy cluster A: Public transport Funding and Financing 91 10.2.2 Policy cluster B: Public transport organization 91 10.2.3 Policy cluster C: Environmental issues 92 10.2.4 Policy Cluster D: Public Transport Operations 93 10.2.5 Policy Cluster E: Modifying issues in Public Transport 93

11. Concluding remarks 94 11.1 General 94 11.2 Key Recommendation summary 96

12. Bibliography 98

13. Annexes 101 ANNEX № 1: DATA COLLECTION OVERVIEW 101 ANNEX № 2: DATA REVIEW OVERVIEW 105 ANNEX № 3: STAKEHOLDER QUESTIONNAIRE 117 ANNEX № 4: EVALUATION OF STAKEHOLDERS’ ASSESSMENT 122 ANNEX № 5: PTA ORGANISATION BENCHMARKS 129 ANNEX № 6: CASE STUDY LYON (FRANCE) 133 ANNEX № 7: NATIONAL TRANSPORT PLANNING POLICIES PLANS 136

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 3 LIST OF FIGURES

Figure 2-1: GHG annual limit values according for Kazakh cities6 13 Figure 2-2: Schematic depiction of stakeholders’ domains in public transport 14 Figure 3-1: Benchmark city comparison by population density 20 Figure 3-2: Comparison of GDP per capita per city and national/European averagе 20 Figure 3-3: GRP per Capita in Kazakh cities/regions, 1999 and 2004 21 Figure 3-4: Volume of Industrial Production in Kazakh Regions 21 Figure 3-5: Comparison of unemployment rates 22 Figure 3-6: Comparison of multi-year population growth rates across benchmark cities 23 Figure 3-7: Urban Population Development for Kazakhstan 23 Figure 3-8: City-level and national motorization rates 24 Figure 3-9: Development of passenger cars 25 Figure 3-10: Best practice components for sustainable urban mobility 25 Figure 3-11: Comparison of modal split for cities with reported data 26 Figure 3-12: Disconnected cycle networks as a hindrance to urban cycling 27 Figure 3-13: Segregated cycle lanes with designated pedestrian crossings encourages cycling 27 Figure 3-14: Passenger Transport Demand in Kazakhstan 28 Figure 3-15: Passenger demand per transport mode in Kazakh cities 28 Figure 3-16: Passenger demand for electrified public transport modes in Kazakh cities 28 Figure 3-17: Fragmented responsibilities without dedicated Authority 29 Figure 3-18: Coordinative effects of Transport Authority 29 Figure 3-19: Overall forms of public transportation 30 Figure 3-20: Level of cooperation in public transport organization 31 Figure 3-21: Categorization of Public Transport Authority typology in benchmark cities 31 Figure 3-22: Present organizational structure of public transportation in Kyzylorda (200.000 33 inhabitants (2009) Figure 3-23: Existing Public Transport structure in the City of Almaty 33 Figure 3-24: Existing Public Transport structure in the City of Astana 34 Figure 3-25: Existing paper tickets from APK in Kyzylorda in the year 2014 35 Figure 3-26: Higher single fares can be found in cities with higher GDP/capita rates 36 Figure 3-27: Ring zones Tariff System in Munich 37 Figure 3-28: Honeycomb structure for tariff zones in Mannheim 37 Figure 3-29: Age structure of registered cars in 2014 in Kazakhstan 37 Figure 3-30: Carbon Dioxide emissions in Kazakhstan 37 Figure 3-31: Example of Air Quality Index for Benchmark City Leeds 38 Figure 3-32: Example of Air Quality Index for Benchmark City Bilbao 38 Figure 3-33: Screenshots from the AUA-App 38

4 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-34: Ozone exceedance days for benchmark cities 39 Figure 3-35: Top down policy structure for air quality applicable to EU city benchmark examples 39 Figure 3-36: Low Emission Zone eligibility badges and official road sign (Germany) 40 Figure 3-37: Benchmark cities’ current status on LEZ 40 Figure 3-38: Congestion Charging considerations in benchmark cities 41 Figure 3-39: Parking Management Strategies in benchmark cities 41 Figure 3-40: Implementation steps for establishing LEZ 41 Figure 3-41: Cost components of urban mobility in Lyon 42 Figure 3-42: Use of road space per person by car (2) and public transportation (3) 42 Figure 4-1: PSC components 46 Figure 4-2: Exemplary Public Transport Financing Sources in Germany 48 Figure 4-3: Origin of Funding in Germany in 2012 49 Figure 4-4: Compensation of School Transport Services in Bavaria 49 Figure 4-5: SYTRAL revenues and expenses in 2010 50 Figure 5-1: Spread of stakeholder agreement with P/T financing statements 54 Figure 5-2: General sources, allocation and use of public transport financing 56 Figure 6-1: Abstract visualization of policies per administrative level 64 Figure 7-1: KPI data and evaluation interdependencies in P/T 73 Figure 8-1: Joint Approach from Scenario Development to Policy Implementation 77 Figure 8-2: Methodological approach to scenario analysis 78 Figure 8-3: Explanation: What is a scenario? 78 Figure 8-4: Key influencing factors 79 Figure 10-1: Average policy effect rating across all impact areas 87 Figure 10-2: Policy Implementation Strategy 90 Figure 10-3: Step-by-step approach to policy implementation 90 Figure 1: Schematic depiction of stakeholders’ domains in public transport 122 Figure 2: Stakeholders’ rating of proposed P/T enhancement measures 123 Figure 3: Stakeholder assessment of sustainable P/T parameter importance for Almaty 123 Figure 4: Stakeholders’ assessment of customer-related public transport issues 123 Figure 6: Almaty traffic jams render private car use unattractive* 124 Figure 5: Attractiveness of private car usage 124 Figure 7: Stakeholders’ relevance rating of issues to improve prospective P/T service levels 125 Figure 8: Proportional spread of change impact strength across all suggested future importance of 125 P/T issues Figure 9: Spread of stakeholder agreement with P/T financing statements 126 Figure 10: Spread of stakeholder agreement with P/T organizational reforms 127 Figure 11 Strakeholder assessment of specific policies need 127

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 5 LIST OF TABLES Table 1-1: Overview of annexes and their content 9 Table 2-1: Reviewed data categories of relevance to P/T planning and operation 10 Table 2-2: Socio-economic data: scope and availability 11 Table 3-1: Benchmark cities grouped by population size 17 Table 3-2: Benchmark indicator selection and preliminary appraisal of data quality and robustness 18 Table 3-3: Consulted sources for benchmark analysis 19 Table 3-4: Cycling Policy pillars and Astana’s/Almaty’s Status Quo 27 Table 3-5: Function and tasks of Public Transport Authorities 32 Table 3-6: Different approaches to remit assignment in public transport organizational structures 32 Table 3-7: Current single fares for use of public transport in Kazakh cities 35 Table 3-8: Comparison of Transport Modes 42 Table 3-9: Annual urban congestion costs by benchmark country 43 Table 4-1: Financing Scheme of Public Transportation in selected benchmark cities 49 Table 4-2: Advantages and disadvantages of net and gross P/T contracts 52 Table 4-3: Assessment of individual aspects regarding the implementation of Procurement processes 52 in public transportation Table 5-1: Comparison of funding/financing and tendering procedures in benchmarking and 55 Kazakhstan cities Table 5-2: Financing bodies and proportional funding in selected benchmark cities 58 Table 5-3: Further revenue options for P/T 58 Table 5-4: Basic data on selected PPP projects in Kazakhstan 59 Table 5-5: Possible actions for a school transportation system 62 Table 6-1: Current regulatory issues and their manifestation in urban P/T 65 Table 6-2: Overarching areas to be addressed with appropriate legal framework conditions 67 Table 6-3: Advantages and disadvantages of net and gross P/T contracts 69 Table 6-4: Assessment of individual aspects regarding the implementation of Procurement processes 69 in public transportation Table 7-1: Indicator selection criteria 72 Table 7-2: Comparison between internal and external KPIs in Public Transportation 72 Table 7-3: KPI levels and perspectives in Public Transport 73 Table 7-4: KPI excerpt and linkage to CAST measures 74 Table 7-5: Recommended KPI for operational evaluation of P/T Services and input into national 74 Transport Statistics Database Table 8-1: Scenario development – criteria and points of origin 79 Table 8-2: Scenario 1: Pessimistic scenario 80 Table 8-3: Scenario 2: Trend scenario 81 Table 8-4: Scenario 3: Optimistic scenario 82 Table 10-1: Detailed average impact ratings per policy (0 = No impact; 4 = significant impact) 88 Table 10-2: Recommended policy clustering according to primary intention 89 Table 10-3: Policy Impact Rating 89 Table 10-4: Suggestions for financial policy-making 91 Table 10-5: Suggestions of organizational policy-making 91 Table 10-6: Suggestions for environmental policy-making 92 Table 10-7: Suggestions for operational policy-making 93 Table 10-8: Suggestions for further policy-making efforts 93 Table 11-1: Summary of Key recommendations 96

6 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN LIST OF ABBREVIATIONS

ADB Asian Development Bank AFPRS Automated Fare Payment and Recording System ASTRA Astana Public Transport Authority AUA Almaty Urban Air AUTA Almaty Urban Transport Authority BOT Build-Operate-Transfer CAST City of Almaty Sustainable Transport CNG Compressed Natural Gas CO2 Carbon Dioxide dBA Decibel, A-weighted Sound Pressure Level DBFM Design-Build-Finance-Maintain DBFOT Design-Build-Finance-Operate-Transfer DBOT Design-Build-Operate-Transfer EBRD European Bank for Reconstruction and Development EC European Commission ELTIS European Local Transport Information Service EPOMM European Program on Mobility Management EFRE European Fund for Regional Development EU European Union BOT Building- Operation- Transfer DBFM Design- Building -Financing-Maintenance DBFOT Design - Building - Financing - Operation - Transfer DBOT Design - Building - Operation - Transfer GOST Russian: ГОСТ; Abbreviation for Technical Standards defined by the Euro-Asian Council for Standardization, Metrology and Certification (EASC) GRP Gross Regional Product GVBA Public Transport Authority of Amsterdam km kilometer(s) KPI Key Performance Indicator LEZ Low-emission Zone LLP Limited Liability Partnership LRT Light Rapid Transit MTA Metropolitan Transport Authority NO Nitrogen Monoxide NO2 Nitrogen Dioxide OECD Organization for Economic Co-operation and Development PCC Project Control Center P/T Public Transport P+R Park and Ride PM10 Particulate Matter PPP Public Private Partnership PSC Public Service Contract PTA Public Transport Authority RENFE Red Nacional de los Ferrocarriles Españoles SOE State-owned enterprise SUMP Sustainable Urban Mobility Plan TMB Transports Metropolitans de Barcelona TOD Transit-Oriented Development UITP Union Internationale des Transports Publics UNDP United Nations Development Program USD US-Dollars VAT Value Added Tax VDV Association of German Transport Companies (Verband Deutscher Verkehrsunternehmen)

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 7 8 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN INTRODUCTION 1 The current project aims at a wide-spanning and affects a city’s mobility options including infra- comprehensive policy review of the public transport structure, sustainable network, required organizational sector in Kazakhstan with a focus on the urban sphere. structures and management frameworks required and It builds on the preceding work of the Sustainable quality and safety levels. The concept of urban mobility, Urban Transport Strategy 2013-2023 for Almaty as well thus, takes on the passenger-oriented perspective as subsequent proposals for legislative adjustments and inhabitants’ need for being on the move, travelling to enable decision-making and the improvement of between A and B by various means of transportation financing opportunities for enhanced urban transport (motorized, non-motorized, public, private). Urban infrastructure. public transportation is part of the solution to provide such adequate and sustainable urban mobility, forming The term “urban public transport/transportation” is a vital backbone to people’s mobility requirements used throughout this report to describe the system and and the quality of life in cities. Consequently all efforts its facilities consisting of the means and equipment to enhance urban P/T are always linked to issues of (both mobile and stationary) necessary for moving urban planning. Consequently recommendations passengers within a city1. This includes not only all road derived from the policy review at hand are not merely a and rail-based modes available to varying degrees matter of responsibility for transport planners but often (bus, trolleybus, LRT, metro) but also walking and a cross-sectorial topic for local governments. cycling. From a holistic transportation system’s view private cars are included in the approach due to shared The structure of the report focusses on describing road space. The broader definition, thus, also includes the main findings and derived recommendations issues such as parking management schemes, cycle from the extensive policy and best practice research, networks and parking facilities, pedestrian safety and stakeholder interviews and the expert work-shop held guidance. This definition is clearly delineated from in Almaty in July 2017. It also includes an opening national transportation such as long-distance train section on data availability and method-ologies networks, airports/aviation and ports/shipping as well applied throughout the review. as motorways. These are not included in this project. Detailed information on single data sources (especially The level of public transport development directly regarding the statistics used in the interna-tional benchmark) and elaboration on the findings can be 1. Definition: http://www.thefreedictionary.com/public+transit consulted in the respective annexes as follows: Table 1-1: Overview of annexes and their content

Annex Number and Title Content 1. Data collection and overview Detailed reference list of all consulted main documents, including publicly available statistical information. 2. Data review Overview of core documents, including content summary and suitability assessment for policy review. 3. Stakeholder questionnaire Comprehensive listing of open and closed-format questions asked to stakeholders. 4. Evaluation of stakeholder interviews Detailed analysis of answers, including graphs. 5. PTA organization benchmark Overview of all cities included in the international benchmark to highlight their respective approaches to organizing urban public transport. 6. Case study Lyon Detailed analysis of benchmark city Lyon to highlight funding, organizational structure, transport offer. 7. National policies planning Overview of all relevant policy documents and planning procedures in the respective benchmark city countries.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 9 OVERALL DATA COLLECTION AND ANALYSIS TECHNIQUES 2

2.1 OVERALL METHODOLOGICAL 2.2 DATA AVAILABILITY AND ITS APPROACH TO DATA CONSEQUENCES FOR PUBLIC COLLECTION TRANSPORT (PT) First, an appreciation of the policy planning and The availability of relevant socio-economic and development realm both in Kazakhstan and from transport-related data is a key issue to successfully selected cities as presented in the benchmark analysis analysing and understanding past, current and future was secured by means of a structured docu-ment review developments in cities and regions. Infor-mation on (Data Collection and Analytical Review of Documents). urbanization, population and income development This forms the basis for the next stepts (International as well as more detailed data regard-ing passenger Benchmark, Stakeholder Interviews and Expert Panel) flows, ticket revenues, motorization and others supports where primary sources were consulted in the form of the planning process to reach relevant conclusions key stakeholder interviews and for an in-depth qualitative and recommendations for future sustainable urban approach to current best practice examples of the transportation. Therefore the preliminary step to the policies shaping present day urban public transport policy review was devoted to the evaluation of existing planning in Kazakhstan. Subsequently work on Scenario data sources in terms of their potential contribution both Development then builds upon our extensive findings to urban transport planning (overarching; external data) sourced both by means of desk-based research and as well as operational monitoring (company-specific, personal discussions and interviews with key experts/ internal data). Data gaps in terms of availability, stakeholders to develop possible scenarios and identify resolution (spatial/temporal) and transparency the implementation measures required to meet the therefore directly serve to highlight the need to include target state as defined in/by the preferred scenario. data matters into future policy recommendations in order to ensure a sound quantifiable and transparent Finally Suggestions & Recommendations then expands base to monitoring and comparing public transport on the measure selection as identified in work all service levels and quality as well as the defining previous phases and derives a range of suggestions and framework conditions such as potential passenger recommendations for policy adaptation and measure growth, purchasing power etc. The following data derivation. categories were reviewed: Table 2 1: Reviewed data categories of relevance to P/T planning and operation Key Topic Aim Socio-economic data to highlight existing data sources, data resolution and purpose Key P/T data to inform initial discussions on refining existing national data sources and devising monitoring mechanisms in PSC Legal data to review available framework and potential need for change to foster urban public transport Environmental data to further existing efforts of data recording and incorporate measurements into evaluating effective improvements in urban public transport

10 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 2.2.1 Socio- economic data capacity of metropolitan areas has a major impact on their ability to finance public services, including public Socio-economic data at city level and – where transport systems. appropriate – supplemented by national data was Usually annual averages were made available by researched as part of the city benchmark allowing to compare 10 Kazakh cities with 21 selected Eu-ropean means of publicly accessible sources (e.g. local cities with similar population sizes to the Kazakh cities. council homepages). The timeliness of such data as For this purpose the following com-mon indicators city population sometimes suffered from a significant were selected and data retrieved mainly from time-lag, meaning no up-to-date figures were municipal level statistics: available in some instances. Also, cities seem to • City population, density and growth rate handle city population forecast in various ways, from not reporting future projections to using different time- • GDP, GDP per capita (nominal) horizons – thereby rendering it challenging to perform • Unemployment rate calibrated benchmarks. • Administrative structure The following table summarizes the key socio- Within the benchmark analysis, this socio-economic economic data valuable to a cross-sectorial approach data was expanded upon by transport-related and to public transport planning; i.e. policy makers environmental data, such as modal split, motorization and transport planners should strive to widen their rate and CO emissions. 2 analytical scope at the urban level to discuss socio- The analysis of socio-economic data is relevant to economic projections and their potential conse- understand countries’ and cities’ current demo- quences (positive and negative) for public transport graphic, urban and economic situation. The economic service levels.

Table 2 2: Socio-economic data: scope and availability

Socio-economic Current data availability for and transport Key issues to consider Kazakh Benchmark Cities indicators City population City population readily available Risk of underestimating the actual number of urban dwellers; through Ministry of National unregistered internal and external migrants in cities 2 Economy of the Republic of Discrepancies directly affect governmental budgetary transfers and – Kazakhstan Committee on in turn – the level of public services Statistics. Population density Derived from city population and See comment above city size (square km) Due to city growth in many Kazakh urban areas great care must be paid to updating official data sources reporting the area covered. Benchmark cities usually distinguish between core/inner-city areas and larger urban zone Population growth City growth forecasts not National demographic information cannot be equated with urban rate available from central source; demographic forecasts; issues of “domestic” migration (cities generally foreseen growth only function as pull-factors and attract many native migrants) must be reported at national level monitored as well as birth rates For urban transport planners population growth rates are ideally computed at high spatial resolution, identifying those city areas with potential higher/lower demand for P/T services GDP, GDP per National level statistics available Cities are known to be strong GDP-contributors and to illustrate capita (nominal) through Ministry of National this, their contribution should be depicted in national statistics. GDP Economy of the Republic of resolution by city would highlight how especially Almaty and Astana’s Kazakhstan Committee on contribution to na-tional GDP has been on the rise in recent times4. Statistics; data for urban level Conse-quently transport planners should pay attention to the centrally unavailable, scant effects and developments of city-dwellers purchasing power when data only from heterogeneous discussing fare-setting scenarios sources3

2. OECD (2017) Urban Policy Reviews: Kazakhstan 3. Please refer to overview table in bibliography for listing of available GDP/capita information for select Kazakh cities 4. OECD (2017) Urban Policy Reviews: Kazakhstan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 11 Single ticket fare Information available from city Relevance for benchmarking policy-makers/transport planners (Transport related) transport webpage (e.g. Almaty), in combination with information on urban level GDP (purchasing unofficial travel information for power) to foster regular recurring discussion on fare adjustments to Kazakhstan (posted by former ensure the highest possible yet simultaneously socially acceptable tourists); data availability scant fare box revenue levels Car ownership The data is presented on the In terms of urban transport development the data should be levels (Transport official statistical source5 and collected on a city level (per transport mode). related) includes monthly comparable Spatial resolution: The comparable analysis should in-clude number reports. The data is presented of owned cars in all cities and villages with-in relevant region of the for 14 regions and the cities of country. Almaty and Astana. Temporal resolution: Yearly data collection and analysis would suffice to use it in terms of PT planning/ modelling and future development.

2.2.2 Key public transport data – if at all – it also remains the property of such organizations. Research as part of the best practice The current urban transport situation (this includes benchmark highlighted that public transport authorities the use of private cars in urban centers as well as and even some operators do, however, share certain public transport, walking and cycling) was reviewed public transport indicators with the interested public and addressed in the city benchmark. This included via their annual reports and/or a “facts and figures” (under the precondition of data availability): section on their websites. This includes information on • Modal split by city (percentage of self-reported current: usage of public transport, private car and non- • Network length (by road; track/rail) motorized means such as walking and cycling) • Number of serviced lines (by mode) • Car ownership levels • Tariff information (price, zonal mapping etc.) • Transport offer (modes, network length) • Planned infrastructural enhancements (e.g. • Transport structure (organization, ticketing and station/fleet modernization) tariffs) By law (decree no. 1370/2007), transport authorities Related to a quantitative and therefore easily in Europe, for example, are required to an-nually comparable (but also rather coarse) urban transport report (list not exhaustive): situation, further indicators were researched on a city • Number of individual P/T operators and duration of level, consulting official munici-pal information as well current concessions/contracts as national statistical documents. These indicators • Total number of revenue-earning kilometres serve to illustrate the direct and indirect impacts the current urban transport situation has on: • Total number of vehicles across all P/T fleets • Air quality (although other factors, such as industry, • Description of applied tariff(s) play a central role too and it is not straight-forward • Description of applied quality standards to allocate the proportion of pollution caused by Total amount of compensation (not further specified by private vehicles to this equation) type of compensation) per service area (if applicable) • Congestion P/T relevant data resolution is by mode of transport • Triggering measure responses such as: (i.e. tramways, busses, trolleybuses), covers overall • low emission zones/congestion charging passenger flow (expressed in in million passenger km • P+R schemes and million people), number of operating fleet, route • mobility management; incl. car sharing length and a spatial resolution at the regional level. Detailed urban statistics for Kazakh cities for P/T are • alternative technologies; e.g. electric vehicles currently not available from this central source. The chapter on Key Performance Indicators (see dedicated chapter) identifies the most im-portant transport and traffic-related data that are advisably 2.2.3 Environmental data collected but also further refined and adapted by municipalities and transport operators, e.g. in order to Given public transport is both a contributor to monitor service level quality and adapt service levels environmental burdening as well as a mitigating factor according to recorded demand.Given such data is (e.g. more “clean” public transport can lead to fewer primarily gen-erated by the P/T operators themselves cars), transport planners and policy-makers alike are advised to also include environmental data analyses in their background research to both the status quo 5. www.stat.gov.kz and prospective urban scenarios – not least due to

12 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN the fact that transport-related environmental pollution • highest daily concentration measured in any given hampers the quality of life in cities. year. Available environmental data in Kazakhstan refers to At city-level (and emissions are often both caused levels of individual greenhouse gas emissions (such locally as well as affect the immediate area) the as CO2) and can be accessed via the Ministry’s international benchmark highlighted that urban air statistical website www.stat.gov.kz at a partially city quality monitoring stations and publicly available level. The entry page dedicates a link to “Ecological information (in real-time) regarding emissions levels indicators or environmental assessment”. Here, are at hand. Daily data presented for the main pollutants Excel-exportable files on ambient air quality in select along with the current weather conditions and an cities can be downloaded. These averages, however, overall assessment of the air quality can be accessed are of a coarse temporal resolution (i.e. annual), via the web. For Kazakhstan the resolution at the urban offering little detailed insight into the intricate spatial level is not comprehensive (yet) and sources must be and temporal fluctuations in any given city. Also, the sought other than the official statistical website. Almaty GHG currently cover (dust, PM10, SO2, NO2 and for example currently provides a model approach ground-level O3 for Karaganda only, whilst ground- to measuring and evaluation air pollution in the city. level O3 – confusingly represented with two values The city of Almaty has introduced an app “Almaty – is also depicted for Semey, Almaty and Atyrau) for Urban Air” (AUA) to assist air quality monitoring and the years 2000-2015. For Karaganda City only the encourage public awareness of the pollution problem. website does, however, inform about the: It should also assist city planning and decision-making practices, as it stresses the pressing issue of both rising • daily average limit value (statically set value for car use as well as environmentally damaging effects entire timeframe 2000-2015); of old/outdated engines and fuel-types. Importantly, • annual average limit value (dynamic value, however, however, traffic-induced GHG emissions are not the value setting pattern and double re-cording for two only source contributing to urban pollution in Kazakh identically named categories “03- ground level” no cities. Nearby industries are major contributors too discernible see following graph); and without adequate regulations here the overall • annual average concentration of respective GHG; environmental situation cannot be improved solely by and efforts undertaken in the transport sector.

Figure 2-1: GHG annual limit values according for Kazakh cities6

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0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2.2.4 Legal data provided by UNDP. Overall data availability for legal issues in Kazakh public transport is comprehensive. Available legal data in Kazakhstan shows a number of http://adilet.zan.kz/eng offers a publicly accessible laws and regulations in public transport sector which legal information system of regulatory and legal acts for guide and outline all procedures for P/T organization Kazakhstan, covering more than 100.000 documents and service provision. All the official Kazakhstan in Kazakh. It is under the responsibility of the Ministry legislation documents and relevant articles were of Justice of the Republic of Kazakhstan (centre for obtained from the official web resource www.online. zakon.kz and supplemented with documentation 6. according to official statistical source (stat.gov.kz)

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 13 legal information) and also includes a section on guidance is required/in place prior to setting up relevant UN documents. This system allows keyword urban plans and strategies; searches. • Researching by means of extensive keyword Furthermore, the legal framework for the public searches, when possible in the respective national transport sector includes: language(s) in order to ensure maximum retrieval and review of relevant documents; • existing health and safety standards in public transport sector, emerging as both very strict and • Documenting all relevant plans and strategies comprehensive for public transport services; by means of hyperlinks embedded in the benchmarking overview set up as an Excel working • funds allocation procedures and subsidy approval document; process, stipulated by State Government level regulations. • Structuring and reviewing the strategies by relevant urban transport mode (walking, cycling, public Subsidy allocation rules cover the P/T operators, transport as well as parking); who serve non-profitable routes, considered as the • Selecting best practice policy/strategy examples socially important routes. The rules are approved by according to cities with particular and visible efforts the order No. 883 of Acting Minister of investment and to encourage public transport uptake, walking, development, dated August 25, 2015. cycling, alternative fuels to illustrate how these Overall data availability for legal issues in Kazakh measures are grounded in and supported by public transport is comprehensive. To embed the policies; interdisciplinary issue of P/T into wider governmental • Deducting recommendations for Kazakh urban efforts, the following overarching data sources (in transport policy and measure development. terms of documents) were consulted and reviewed: • Kazakhstan Strategy 2050 (2012) – outlining wide-ranging economic, social and political 2.2.5 Analysis of Key stakeholders view reforms; decentralization of power should bring opportunities for P/T planning at the Akimat level; The detailed findings of the stakeholder interviews have been summarized in Annex 4 – Detailed Evaluation of • National Transport Policy in Kazakhstan (2010- Stakeholder Interviews. 2014) – overall strategy/policy development – focus on national-level transport issues, Primary data was obtained by means of conducting however, describes the allocation approach and individual key stakeholder interviews using the composition of city budget for the transport sector elaborated by ETC comprehensive questionnaire in the given timeframe; (see Annex 3: Stakeholder Questionnaire). • Concept proposals on the development of Participating stakeholders came from both the public legislation for the Ministry of Investments and transport planning and operations side as well as from Development – key goals/aims for organizational supporting bodies such as specific training units and improvements to P/T services in Almaty city, members associations/interest groups. however, recommendations are held rather generic; • Draft regulation on differentiated tariff – relevant for Figure 2-2: Schematic depiction of stakeholders’ Almaty, outlines multiple tariff approach, however, domains in public transport the rules applying to different coefficients are not clear; • Legislative proposals on paid parking and public PT Strategic PT Management and transport - detailed recommendations for the city Planning operation public transport improvements and paid parking approach for Astana and Almaty; • Final governmental report for “Ticket and Fare System Almaty Public Transport” – detailed recommendations for P/T service improvement Educational Support Legal / commertial and amendments to particular Kazakh laws and Knowledge Sharing support regulations. Representation of Furthermore relevant transport plans and strategies Capacity building were identified thereby ensuring any documents at the interests city-level were also included. Attention was paid to: • Identifying relevant and determining plans and strategies at higher federal and/or national and in the case of the European benchmark cities supranational (e.g. EU) to ascertain which

14 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 2.2.6 Recommendations for urban public b) feeding their information into a national database such as Ministry of National Economy of the transport related selection, collection Republic of Kazakhstan Committee on Statistics, and evaluation of socioeconomic data in allowing tailored analyses at the city level. • Expand currently available socio-economic data Kazakhstan on Kazakh Ministry’s website to include not just national but also regional/urban resolution for As transport (and in this particular review, urban key information (for more detail on best practice public transport) constitutes a cross-sectorial topic, examples such as Eurostat’s urban audit, see socio-economic data are paramount in informing detailed background report). strategic planning an policy decisions. Given urban public transport and road space form the backbone • Clearly include a subsection for urban transport to mobility (and thus economic prosperity of the and related socio-economic data (a filter function population by means of access to employment, can pick up on socio-economic data in various education and leisure) in any given city, it is highly contexts and must allow data selection of e.g. advisable that Kazakh cities consider systematically population for the overarching public transport gathering and representing core socio-economic data category too) in the national database. information at the city level. This will allow aligning • Ensure publicly available data is consistently future policy decisions and derived implementation exportable to Excel to enable bespoke analyses by measures with the city’s requirements. transport planners/policy-makers. General socio-economic data is relevant for policy • Consider including mapping functions for key review and scenario development in that it serves as a socio-economic data without the necessity for quantifiable and comparable starting point to mirroring elaborate and costly mapping software (e.g. best both expert opinions (as done in the stakeholder practice example: Eurostat’s Urban Audit) interviews) and policy appropriateness in terms of • Consider extending the spatial resolution of key derived implementation measures ability to address a data at the urban level to depict the difference city’s: between the city’s core area and larger surrounding • Identifying the city transport needs based on the area, thereby allowing detailed analysis of the demographics and purchasing power indicators progression of urban growth. and any connected to this imbalances(e.g. identifying the need to distribute subsidies to economically weak population segments) 2.2.7 Key recommendations for P/T Data • Funding ability for public transport and urban Consider/discuss whether key P/T data at the urban planning enhancements level should be included in the national statistics It is recommended to include a forecast data of database, allowing interested parties (including demographic composition, population density and transport planners and policy-makers) to search and economic prosperity as basic information for future filter by urban centre or whether this should be part city public transport planning. of each respective Akimat’s remit to present such key information in a subsection of its homepage – final Therefore, key recommendations are: choice for the preferred way forward is principally • Highlight the importance of key socio-economic determined by whether spatially dispersed and data all governmental levels (national, regional, fragmented data (and this is exactly what P/T is) should local) as it holds the key to analysing regional be centralized and accessible by means of a one- differences and should prompt the Kazakh national stop-shop or whether the level of detail in reporting/ government to consider co-financing mechanisms publicly sharing should fall within the responsibility of (redistribution of tax revenue from prosperous the Akimats. to less affluent regions/centres) for public transportation in order to enable all cities and To develop a sound KPI basis, key public transport regions to introduce a sustainable urban transport data relating to operations should be determined, system. along with the appropriate temporal and spatial resolution (annual averages at city-level) as well as • Cities/local authorities in a cross-departmental data recording and calibration methods. The scope of effort (i.e. this is not solely the responsibility of relevant P/T data, including other modes as well (e.g. transport experts) should place emphasis on especially walking and cycling) should cover basic either: indicator categories as listed a) setting up sound local/regional databases for • Network parameters: length in km by mode type, basic socio-economic indicators and timelines i.e. road/rail, number of serviced lines by mode (see Table 3) and making these publicly available • Tariff and pricing parameters: ticket types and by means of the internet and/or prices as well as revenue generated per mode and serviced line

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 15 • Fleet dimensioning parameters: number and type 2.2.9 Key recommendations for legal of vehicles • Mobility uptake parameters: modal split, recoding data of proportion of trips by car, bike, on foot or Continuously refine existing legal database with public transport (here representative surveying regards to the keyword search options, so that techniques need to be adhered to). interested parties can conduct a search of all relevant laws for urban public transportation by entering common keywords relating to the topic. Extend 2.2.8 Key recommendations for translation of documents to English in order to allow an even wider range of interested parties to access environmental data the information. Continue to expand the centrally administered Consider including links to relevant external database on greenhouse gases to include further city documents important to prospective legal changes data other than for Karaganda, Semey, Almaty and such as legislative proposals and draft regulations as Atyrau to offer comprehensive (but temporally coarse) well as governmental reports. coverage at the urban level as a first point of reference and comparative source and to consistently record PM10 levels (data availability currently very scant) Initiate discussions regarding the adjustment (forecast/long-term) for all GHG currently recorded, as the recording timeframe 200-2015 suggests that the daily average limit value has remained unchanged throughout the entire recording period. Clearly commitments to environmental protection should also lead to striving for stricter acceptable targets with regards to annual averages too. Here currently no discernable pattern (see Figure 2 1) in value setting can be detected, i.e. no steady reduction in desirable levels for any of the GHG is recorded in the official source Environment – just as issues relating to housing and transport – is currently addressed by means of a sectorial planning approach in Kazakhstan, however, these topics are effectively interdisciplinary and require a broad and interlinked knowledge-base of experts7. Therefore it is advisable to include key findings from air quality monitoring (as environmental management is trans-sectorial) into transport planning. Especially if “clean air” implementation measures (such as congestion charging, environmental zones to deter car use; green mobility initiatives such as electric P/T vehicles, higher Euro standards (4 or 5), enhancement of walking/cycling infrastructure to encourage more sustainable transport modes) are sought – a quantifiable before-and-after analysis based on environmental indicators such as greenhouse gases is paramount to highlight the benefits achieved. Therefore consider a roll-out of the AUA-approach in Almaty to other Kazakh cities, as this is a vital first step at educating the public and raising (quantifiable) awareness of the pressing environmental issues that car use bring Linked to this, consider refining existing air quality monitoring stations and expanding such a network to currently uncovered urban areas and making the information publicly available.

7. OECD (2017) Urban Policy Reviews: Kazakhstan

16 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN BENCHMARKING ANALYSIS 3

A comparative benchmark of 31 cities (from 11 further cities from a range of European countries. countries) and their respective public transport The rationale behind clustering by population size situations was conducted. This chapter describes the follows from the reasoning that cities of a similar approach and findings. population size face similar demands for urban living, employment, amenities, public infrastructure in 3.1 METHODOLOGICAL APPROACH general and transport in particular. Please note: Although Kyzylorda has less than 3.1.1 City selection 300.000 inhabitants, it has been included in the data analysis in certain chapters where a The main parameter for selection was the most recently comparison was suitable and data available. available total of the urban population. Based on this, Therefore indicators and data analysis relating to five clusters were devised, each containing one – and Kyzylorda do not appear consistently in all graphs/ in three clusters two or more – Kazakh cities and five tables.

Table 3-1: Benchmark cities grouped by population size

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Population Size 1.500.000– 250.000– 750.000–1.000.000 500.000–750.000 300.000–500.000 2.000.000 300.000 Pavlodar City Karaganda Taraz Aktobe Kazakh Cities Almaty Astana8 Shymkent Oskemen Uralsk Semey Munich Amsterdam Lisbon Mannheim Vienna Bilbao Bielefeld Lyon Wiesbaden European Cities Sofia Zagreb Bristol Birmingham Ostrava Hamburg Lodz Katowice Marseille Perpignan Barcelona Leeds Kazakhstan Kazakhstan Kazakhstan Netherlands Kazakhstan Kazakhstan Germany Germany Countries Spain Portugal Germany Austria Czech covered9 Croatia France Great Britain Bulgaria Republic Poland Great Britain Poland Spain France Great Britain

8. Greater area 9. Countries with multiple benchmark cities in italics

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 17 3.1.2 Indicator selection and methodological limitations Comparable benchmark indicators at an urban level were selected to reflect a city’s overall and transport-specific situation and were sought both in quantitative and qualitative sources. Hereby the following categories were addressed:

Table 3-2: Benchmark indicator selection and preliminary appraisal of data quality and robustness

Category Indicators Methodological considerations Population 1. Total city population Varying reference years resulting in varying degrees 2. City Population Density (number of inhabitants of timeliness of data per km2) Growth rates only partially available; availability annual 3. Population Growth Rate (annual, for core city) or multi-year requires calibration Administration 1. Administrative Structure Qualitative indicator results in varying level of detail for available information Economy 1. GDP Varying reference years and data sources resulting in 2. GDP per capita (nominal) varying degrees of timeliness of data and limitations 3. Unemployment Rate to comparison at urban level Necessity for currency conversion for non USD-data of data from various reference years and inflation levels per year/country partially limit comparativeness across all urban centers Transport 1. Private car ownership levels (motorization rate) Significant variance in data availability across selected Structure/ per 1.000 inhabitants cities as well as timeliness of data Levels 2. Modal split for public transport, walking and Modal split data in many instances from past surveys cycling and therefore not as current as would be optimal, 3. Road safety (number of road fatalities per year) however, EPOMM allows for comparable data for European cities – if in database 4. Road safety (number of fatalities per 100.000 inhabitants) Long-term changes in road fatalities more poignant than one-year “snapshot”, however, data availability 5. Urban public transport supply (network length in km) and calibration of temporal resolution across all cities 6. Cost of single public transport not feasible 7. ticket/fare (inner-city zone) Transport 1. Existence of a dedicated transport authority Little explicit information on integrated timetabling Organisation (yes/no) within the researched transport authorities 2. Integrated ticketing and tariff system (yes/no) Qualitative indicators with reasonable and balanced 3. Integrated timetabling (yes/no) amount of information

Environment, 1. Number of days with Ozone level exceedance 03 exceedance days not available for all cities, Transport and (>120 µg/m³ per day) threshold divergence evident, also limited explanatory health 2. Existence of Congestion Charging (yes/no/ power when viewed over one year as weather can under revision) differ between years, ideally review of longer timelines; 3. Existence of low emission zones strong dependence on prevailing weather situation Primarily qualitative indicators with reasonable and 4. Existence of urban emissions monitoring balanced amount of information at city-level programs 5. Mobility management measures – soft measures for tackling travel demand Private Cars 1. Parking management practice Primarily qualitative indicators with reasonable and 2. Car sharing schemes balanced amount of information at city-level 3. Alternative (green) vehicles 4. Number/capacity or general availability of P+R car parking places Existent 1. Existence of SUMP (Sustainable Urban Mobility Primarily qualitative indicators with reasonable and Transport Plan) balanced amount of information at city-level Policies 2. Relevant supranational policies Varying degrees of public accessibility to original 3. Relevant national policies policy documents 4. Relevant local/council level policies 5. Relevant walking/cycling policies

18 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Specific indicator selection also aims to address the 3.1.3 Data source identification and 8 policy measures as defined by the CAST strategy10 in order to draw parallels to other cities and their selection response to tackling these very issues. From this, best practice examples both in terms of policies/guidelines As with any international urban benchmark, indicators in place as well as practical implementation measures had to be sought from a broad range of sources at were identified and presented (usually in shaded text the international, national and local level. Searches boxes) throughout the report. were conducted by keywords allowing for structured retrieval of information from publicly available These comparative pointers are intended to serve sources. Wherever possible, keyword searches as inspiration/input for further informed policy review were conducted in both English and the respective discussions. national language of the benchmark cities (e.g. German, French, Spanish and Polish) to maximize 10. 8 Measures are: 1. Improve P/T service levels, 2. Integrate and then scrutinize the number of potential sources transport and urban planning, 3. Manage parking, 4. Manage for suitability. All sources listed in the following table traffic, 5. Promote cycling, 6. Promote low emission car zones, 7. Integrate the suburban transport network with the city, 8. Develop constitute the general main sources and were subject road-based transport in a sustainable manner to availability on a city-by-city basis.

Table 3-3: Consulted sources for benchmark analysis Data Type International Sources National Sources Regional/Local Sources Population World Bank Statistics National Offices of Statistics City facts/local council information Eurostat Administration n/a n/a Local council information Economy n/a National Offices of Statistics City facts/local council information Transport European Modal Split Monitoring National Departments Transport Operators key indicators Structure/ Programme (EPOMM) for Transport (and Urban Transport Authority’s fare/ticket Planning) Levels prices National Offices of Statistics Local authority road fatality statistics Transport European Commission (for National Departments Transport Authorities’ profile Organization evaluation of new Member for Transport (and Urban States) Planning) Environment, EU Clean Air Policy Package Real-time air quality Local press releases Transport and (Ambient Air Quality Assessment monitoring index Local authority information health and Management) Private Cars Eurostat (Urban Audit) n/a Local authority information on P+R Commercial car sharing enterprises Local press releases Existent Transport 3rd White Paper on the future of National Departments Local city councils for transport Policies transport (2050), Roadmap to a for Transport (and Urban plans and P/T, walking and cycling Single European Transport Area Planning) policies

and historic city center layout form limiting factors to 3.2 COMPARATIVE SOCIO- physical/infrastructure expansion. ECONOMIC ANALYSIS Currently the Kazakh cities included in the benchmark – with the exception of Almaty and Taraz – display comparatively low population density levels. 3.2.1 City size and population In reviewing the current population density, a focus It is widely acknowledged that – even if a country’s can thus be cast on the most densely populated cities overall population displays negative growth (e.g. in the benchmark study: Barcelona, Lyon and Bilbao especially former Soviet states, however, also and lessons derived for the most densely populated Croatia, Germany, Poland, Italy and Greece to name Kazakh city – Almaty, if scenarios forecast significant a few European examples), cities are growing still, population growth not just by consistently high or largely because they remain motors for the country’s rising birth rates but also due to net migration to economy. A city’s geographic location and topography Kazakhstan’s urban center(s). How then do current (e.g. seaside location, proximity to mountain range) high-density urban areas address issues of supplying

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 19 Figure 3-1: Benchmark city comparison by population density 16 000

14 000 European Benchmark Cities Kazakh Cities 12 000

10 000

8 000

6 000

4 000

2 000

0 Oral Lyon Lodz Sofia Taraz Leeds Bristol Bilbao Lisbon Almaty Vienna Semey Aktobe Zagreb Munich Ostrava Bielefeld Marseille Katowice Hamburg Oskemen Shymkent Perpignan Barcelona Mannheim Karagandy Wiesbaden Amsterdam Birmingham Pavlodar City Astana (greater area) and maintaining adequate public transport services 3.2.2 GDP per capita and unemployment levels for its inhabitants? rates For the remaining cities with lower population density levels, relevant policies from those benchmark cities Kazakhstan’s GDP per capita has been continuously with around 2.000 inhabitants per km2 seem relevant, on the rise in the past years, indicating a robust and as this indicator loosely compares to the other Kazakh sustainable economic growth for the country as a whole. cities. In conclusion this suggests a multi-tiered According to Kazakhstan Strategy 2050 the GDP/ approach to reviewing relevant policies, as no “blanket capita should reach 30.000 USD by this year. Whether recommendations” can be made simply by comparing or not this outlook will hold true can be evaluated in the years to come. Data at the city level – where available cities of a similar population size.

Figure 3-2: Comparison of GDP per capita per city and national/European averagе11 $80 000

GDP per capita (EU 28) GDP per capita (Kazakhstan) $60 000

$40 000

$20 000

0 Lyon Lodz Sofia area) Leeds Bristol Bilbao Lisbon Almaty Vienna Aktobe Zagreb Munich Ostrava Bielefeld Marseille Katowice Hamburg Barcelona Mannheim Karagandа Wiesbaden Amsterdam Birmingham Astana (greater 11. Due to lacking coherent data availability, selected Kazakh cities, where data was available, are analyzed separately in the following chapters.

20 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-3: GRP per Capita in Kazakh cities/regions, 1999 and 200412

$35 000

$30 000

$25 000

$20 000

$15 000

$10 000

$5 000

0 Atyrau Almaty Aktobe Akmola Zhambyl Kostanai Pavlodar Kyzylorda Mangistau Almaty city Astana city Karagandy East Kazakhstan West Kazakhstan North Kazakhstan South Kazakhstan Year 1999 Year 1999 KAZAKHSTAN Year 2004 Year 2004 KAZAKHSTAN

– however suggests that in more recent years (2012- level, as regional prosperity/deprivation directly 2014) this target was still out of reach. impacts P/T operators’ revenue options. Encouragingly regional GRP-analysis for Kazakh The figures above were provided by a USAID analysis; regions suggests a rise within the observed five-year they refer to the Gross Regional Product (GRP) which timeframe. It also, however, illustrates the regional is defined by market value of all goods and services disparities of economic activity in Kazakh cities produced within a metropolitan area. (although one decade out of date). This fact must This finding also mirrors findings derived from the be borne in mind when discussing relevant public industrial production volumes in selected Kazakh transport policies and the appropriate regulatory and regions: a high economic disparities between the financial framework as defined at national/regional regions and the cities. This economic and industrial

Figure 3-4: Volume of Industrial Production in Kazakh Regions13 2 000 000 000

1 500 000 000

1 000 000 000

500 000 000

0 2011 2012 2013 2014 2015 2016 Karagandy Kyzylorda Pavlodar Astana city Almaty city

12. USAID (2006) 13. Agency of Statistics of the Republic of Kazakhstan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 21 Figure 3-5: Comparison of unemployment rates14 20% Unemployment Rate Kazakhstan (=4,9%) Unemployment Rate Eurpean Union (EU28 = 8,6%) 15%

10%

0 Lyon Lodz Sofia Leeds Bristol Bilbao Lisbon Almaty Vienna Zagreb Munich Ostrava Bielefeld Marseille Katowice Hamburg Barcelona Mannheim Wiesbaden Amsterdam Birmingham Astana (greater area) capability is interconnected with the region’s and Bristol in England and Munich in Germany all other city’s contribution to the overall GDP, the local benchmark cities display higher unemployment rates, unemployment rates and thus also the purchasing most markedly the Iberian peninsula cities Bilbao, power of inhabitants. Lisbon and Barcelona. A region’s and city’s economic capabilities also impact Accessibility and participation in everyday life is on their ability to finance public services, including important especially for the more marginalized groups public transport. of society such as the elderly, impaired but also the unemployed; affordable access to job markets is Rising economic prosperity (or the lack of this) largely determines people’s mobility demands, household paramount for this group. Though Kazakh cities are budget allocated for personal travel (be it public or in the comparatively comfortable position of low private) and willingness to pay for high(er) quality unemployment rates, a focus on those cities with of service and/or the relatively expensive use of the high rates may shed some light on best practice private car within the city. As it can be expected that public transport policies/measures that enable all Kazakh cities face a continuous rise in GDP per capita members of society to partake in city life. Discussions in future years too, a review especially of the transport surrounding affordability and accessibility of public structures and policies in place for cities with a transport and public amenities can, thus, be informed current GDP per capita of around $30,000 may prove by best practice examples from cities currently facing interesting. high unemployment rates. Kazakh cities and regions are characterized by highly differing economic strength and income levels. City’s 3.2.3 Urban population growth economic capabilities define their ability to fund public services including public transportation. It is In any given country cities are generally experiencing highly relevant for the Kazakh national government steady population growth due to their function as to acknowledge these regional disparities and co- economic motors. However, growth rates are reported finance public transportation in order to allow every in differing timeframes, most commonly multi-year larger city and region to introduce a sustainable urban or long-term (i.e.2030) limiting a direct benchmark transport system. comparison without prior calibration. City-specific most recent unemployment rates (i.e. Available data was calibrated to show an average percentage of the population of working age currently population growth rate covering 5 years. Forecast not in paid employment) were available for selected data was available for Astana and this indicates a cities only. Overall the officially reported average significant expected population growth, similar only to unemployment rate for Kazakhstan is encouragingly levels encountered by the German city of Munich in the lower than for the European Member States included past decade. Generally urban populations have been here. With only the exceptions of Katowice in Poland, growing between 1-4% in the European benchmark

14. Due to lacking coherent data availability, selected Kazakh cities, where data were available, are analyzed separately in the following chapters.

22 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-6: Comparison of multi-year population growth rates across benchmark cities15

20%

15%

10%

-5% Lyon Lodz Sofia Leeds Bristol Bilbao Lisbon Vienna Zagreb Munich Ostrava Bielefeld Marseille Katowice Hamburg Barcelona Amsterdam Birmingham Astana (greater area) cities included. However, the cities from the former forecasts. Therefore Munich’s Local Transport Plan – Eastern Bloc (Poland, Czech Republic) have displayed as this is the benchmark city with the highest growth negative population growth rates in the past years. rate – may also hold some interesting information A city’s population size and especially its current in terms of best practice for fast growing cities. For and forecast growth rate constitute a challenge for more information, please see text box “Case Study – designing adequate public transport service levels Munich’s Local and Regional Transport Plans”. in terms of their frequency, quality and accessibility. Figure 3-7 above shows the urban population Cities strive to ensure fast, safe and affordable public development in selected Kazakh cities / regions also transport service levels for their citizens. Policies aiming included in the benchmark analysis. at identifying and addressing public transport demand should therefore be of core interest to especially the Most Kazakh cities have experienced strong city of Astana with its significant population growth urbanization processes between 2003 and 2014. This Figure 3-7: Urban Population Development for Kazakhstan16 5 000 000

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Pavlodar Kyzylorda Karagandy Aktobe Astana city Almaty city

15. Due to lacking coherent data availability, selected Kazakh cities, where data was available, are analyzed separately in the following chapters. 16. Agency of Statistics of the Republic of Kazakhstan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 23 is especially and most visibly the case for Astana and outlying areas and the implementation of two funicular Almaty. In Kyzylorda and Karaganda there is notably lines as well. a break in urban population increase in 2007, but continuous rise can be seen afterwards. 3.3 COMPARATIVE ANALYSIS OF As example, reviewing Munich, the city is forecast to grow even stronger than anticipated. This puts URBAN TRANSPORT STRUCTURE an additional strain on the provision of public services, transport included, and impacts on the Urban transport structures across all benchmark cities city’s approach to urban planning. Munich has both display varying compositions of transport modes a Local and a Regional Public Transport Plan – (mainly bus and tram, for larger cities also metro and both these documents strengthen the situation that LRT and in some instances trolleybuses) as well as urban transport in a densely populated region need private car use and ownership and the fostering of addressing at various spatial and political levels. The alternative non-motorized modes of transport, namely Local Transport Plan lists goals and infrastructural walking and cycling. measures (road, rail, underground) for bus, tram and This benchmark section analyses the following LRT as well as quality standards for the public transport indicators: network. Thereby it divides the city according to its • Car Ownership – to identify cities with high/ utilization density and defines the maximum walking low rates and compare this to favorable policy distance to the nearest station/stop as well as the measures (both push and pull approaches, i.e. required service frequency. This approach allows for incentivizing/deterring car use) the best level of service provision to citizens. • Modal Split – to identify cities with a high modal The Local Transport Plan also sets out vehicle split for P/T as well as walking cycling to highlight occupancy thresholds in order to allow public transport policies implemented here organizations some orientation when planning their services and dimensioning their fleets/vehicles sizes. A third focus of the plan is to outline customer-relevant 3.3.1 Car ownership standards with regards to the quality of vehicles, competencies of staff, cleanliness and information Generally the benchmark analysis confirms the hypotheses that, the larger the city, the available at interchanges, punctuality, intermodality, lower the number of privately owned cars per customer communications, safety, priority measures 1.000 inhabitants and that cities tend to display for public transport, ticketing and tariff17. motorization levels below the national average, Given the significant population growth for the city, with the exception of Eastern European examples discussions at the municipal political level are now of Sofia (Bulgaria) and Katowice (Poland). In focusing on the prioritization of the measures identified Kazakhstan currently available data suggest the in the Local Transport Plan. These primarily deal with opposite trend, i.e. cities display higher than an extension of existing tram and metro lines/routes to national average car ownership levels.

Figure 3-8: City-level and national motorization rates18

800

600

400

200

0 Lodz Sofia Leeds Bristol Bilbao Lisbon Almaty Vienna Zagreb Munich Bielefeld Marseille Katowice Hamburg Shymkent Barcelona Amsterdam Birmingham Car Ownership Levels Kazakhstan Car Ownership levels Europe (EU28) Astana (greater area)

17. Landeshauptstadt München (2005); MVV (2012) 18. Due to lacking coherent data availability, selected Kazakh cities, where data was available, are analyzed separately in the following chapters.

24 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-9: Development of passenger cars19

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Kazakhstan Aktobe Almaty Karagandy Kyzylorda Pavlodar Astana city Almaty city

The motorization rate is not consistently available for pull and push factors seems adequate, as virtually all all Kazakh benchmark cities. For Kazakhstan evidently cities in the benchmark have parking management car ownership and thus the motorization rate have practices in place (an additional source of revenue been rising continuously with the annual increase and – with certain pricing schemes and adequate P+R being markedly higher since 2003. Reasons for this facilities and public transport links into the city center can be found in 1) the decrease of unemployment also a deterrent to inner-city parking). levels combined with 2) an increase in GDP per capita As example, city of Barcelona encouraging less rates, allowing more inhabitants to afford a car. conventional private and commercial car use by Statistical information confirms the concerns for a building up infrastructure for alternative vehicles and continuous rise and hence future scenario for high car efficient use of road space: A high-density city with ownership levels in Kazakh cities. As levels seem on a historic urban layout, road space and air quality are par with the majority of the European counterparts in paramount issues. Motorization levels are currently on this benchmark, valuable policy lessons – especially a par to Almaty’s. Encouragingly, however, Barcelona’s from cities with a much higher population density (e.g. modal split displays high levels of walking20 (32%). Barcelona, Bilbao) can be learned. A review of both Cycling for many is still not an attractive alternative

Figure 3-10: Best practice components for sustainable urban mobility21

SUSTAINABLE SMART TRAFFIC ALTERNATIVE GREEN PARKING DELIVERY MANAGEMENT FUELS INDEX IN COMBINATION Trave Demand Development of WITH CAR SHARING Integrated multi-mode Management and traffic charging infrastructure POOL FOR ELECTIC transport for light goods control system for and set-up of refueling VEHICLES passenger vehicles faciliites Electric and cargo bike Traffic signals pool synchronized to Smart guidance to Micro-distribution of prioritize certain alternative fuel stations freight vehicles/movement of and fast charging point goods

19. Agency of Statistics of the Republic of Kazakhstan 20. Source: European Commission (2011) 21. Source: EU Smart Cities Information System

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 25 despite efforts of the city’s Cycling Strategy to build Public Transport: Given the limited data availability further cycling lanes, as their connectivity to form a and the resulting small number of cities analyzed comprehensive network is still lacking – as is commonly in this benchmark, a correlation between city size the case. Barcelona is attempting to curb motorization and public transport uptake cannot be ascertained. levels by a mix of measures both directly and indirectly With the exception of the Czech city Ostrava it does, targeting conventional car use and its side effects however, appear that there is a slight tendency for in urban areas. These include fostering sustainable the larger the city, the higher the modal split share urban mobility in Barcelona’s neighborhoods as part for public transport. For Kazakhstan UITP data was of the “Grow Smarter” Initiative. available for the public transport share of trips. In Almaty it reportedly averages around 65%23, thus, Barcelona case study shows that curbing the use of encouragingly being significantly higher than the conventionally fuelled private cars can be addressed overall average reported across all analyzed cities. by: considering all forms of motorized traffic (Astana ambitiously aims for a 25% modal split for P/T, (commercial and private) as suitable for innovative 25% for cycling and 25% for walking24), though – as approaches in vehicle technology, regulating traffic the graph shows – data available for cycling shows flows by means of traffic guidance systems (including much lower rates at present. priority signaling for public transport, cycling), by supplying the necessary infrastructure and information Walking: It appears that the most densely populated for/on alternative fuelling points and by offering cities are also “walking cities”, e.g. Barcelona, Bilbao alternative share-economy transport means. and Lyon, with amenities in walking distance. Lyon accounts for a pedestrian-friendly city. Associated with the city is the so-called “Lyon Protocol” – a document 3.3.2 Modal split illustrating the way towards car-free cities. As with cycling, the provision of adequate, comprehensive Modal split data constitutes a valuable indicator for and safe walking infrastructure coupled with a dense assessing the effectiveness of measures aimed at network of shops, recreational, educational and encouraging sustainable urban transport. However, workplaces is key. Cities, where the center is both for data to fulfill these criteria it must be gathered over residential and commercial tend to have a higher a longer time-period in order to allow for comparison modal split for walking. before/after measure implementation. Also limitations lie in the representativeness of the data as it is usually Cycling: The reported modal split for cycling (and self-reported from a limited sample of households. available cycling infrastructure) strongly varies The snapshot presented in this benchmark, thus, between the benchmark cities. cannot offer information on the effectiveness of As example, Amsterdam is a cycle-friendly capital. individual cities’ measure impacts/policies successes. The importance of encouraging a high uptake of It can, however, illustrate which cities appear less car- cycling for urban trips lies not only in the topographic dependent. advantage of it being very flat but in the provision of

Figure 3-11: Comparison of modal split for cities with reported data22 100%

80%

60%

40%

20%

0 Lyon Lodz Sofia Leeds Bristol Bilbao Lisbon Almaty Vienna Zagreb Munich Ostrava Bielefeld Marseille Hamburg Perpignan Barcelona Mannheim Wiesbaden Amsterdam Birmingham численности 1.500.000-2.000.000 750.000-1.000.000 500.000-750.000 300.000- 250.000-300.000 населения 500.000

Modal Split Public Transport Modal Split Walking Modal Split Cycling Modal Split P/T all Benchmark Cities

22. Due to lacking coherent data availability, selected Kazakh cities, where data was available, are analyzed separately in the following chapters. 23. Year: 2016; Source: http://www.eurasia.uitp.org/sustainable-transport-almaty-has-be-only-ecology-friendly 24. Speech by Chief Architect Mr Baktybay Taitaliyev (quoted in Dutch Cycling Embassy Work Visit to Astana documentation, 2012)

26 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-12: Disconnected cycle networks as a Figure 3-13: Segregated cycle lanes with designated hindrance to urban cycling25 pedestrian crossings encourages cycling26

a comprehensive and connected cycle network and Commonly the planning and provision of cycling in the provision of the supporting infrastructure, traffic infrastructure is subject to the hierarchy of provision, calming measures in general, secure cycle parking number one priority being a reduction of inner city at transport nodes (interchange stations), plenty of traffic (i.e. cars). In the case of Amsterdam sustained cycle racks as well as additional push factors such efforts dating back to the 1970s to combine policy as expensive inner-city parking and no-car zones in making and physical planning design together with certain streets as well as one-way traffic system for public pressure (protests) have ensured that cycling cars. Cycling in Amsterdam has grown so popular that has always been an integral part of transport in urban the city council now has to deal with issues of bike- mobility and planning. Recognizing this Amsterdam’s induced congestion and illegal parking. Cycle Policy (an integral part of the city’s mobility policy) is based on four pillarsх27:

Table 3-4: Cycling Policy pillars and Astana’s/Almaty’s Status Quo Urban Mobility Efforts in Kazakh cities to date: Further recommendations for improvement Policy Pillars: Road safety National Road Safety Plan: The Ministry of Internal Roads are wide enough, to include cycle-paths, Affairs has developed a national concept for road however, primarily for cars safety up to 2020 to reduce accidents and increase Design segregated cycle routes in a comprehensive enforcement network 2016 Policy dialogue on road safety was hosted by Introduce traffic calming measures and reduce the WHO/Europe in Almaty angular parking especially in residential areas Introduce urban speed limits and even lower limits near/around schools National traffic regulations should be amended to improve safe cycling Infra-structure Almaty has a bike rental project, Almaty Bike Planning needs to be broken down to lower-level Cycle route planning as part of Astana Masterplan planning for detailed design 2030 Establishment of Cycling Task Force trained for Approximately 100 km of cycling routes are planned cycle planning in Astana, with free crossings, separate bridges 3 designated cycle lanes of various lengths in Veloalmaty Initiative Group Almaty as part of Almaty Sustainable Transport Project Parking Installation of approx. 100 cycle racks in Almaty Introduce adequate cycling parking facilities at since 200928 stations and shopping malls Education and Veloalmaty promotes cycling Dock onto Presidential promotional campaign for promotion Cycling still widely perceived as a leisure activity healthy living and not an alternative mode of transport 29. Develop promotions for schools

25. Example: Leeds; UK; Source: https://departmentfortransport. around-the-hierarchy-of-provision/ wordpress.com/2016/11/21/another-visit-to-leeds-unfinished- cycle-superhighway-with-no-end-in-sight/ 27. Source: Gemeente Amsterdam (2014) 26. Example: Amsterdam, Netherlands; Source: https:// 28. Source: Красовицкий (n.d.) aseasyasridingabike.wordpress.com/2012/10/30/up-down-and- 29. Source: Dutch Cycling Embassy (2012)

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 27 If cycling should contribute in any substantial way • rethink road space allocation fundamentally by to urban public transport then public acceptance devising a clear order of priorities to divide the of this mode must be ascertained (education and space between pedestrians, cyclists, cars and promotion). Roads, infrastructure and parking facilities public transport. must be adequate, therefore: • include cycling data in city transport their model 3.3.3 Public transport demand in Kazakh • base cycle routes on demand study (origin- destination, short trips) cities • structure and reduce inner-city car parking Under the assumption that municipal electric refers to • introduce speed limits and physical traffic calming tramways, trolleybus and metro systems, it appears measures that transport demand has been on the rise in Kazakh cities, most markedly in the past 5 years. • render segregated cycle lanes compulsory along main arterial roads; adhere to clear hierarchy of Regular bus services dominate urban public routes/design of comprehensive core network transportation (see Figure 3 15: Passenger demand

Figure 3-14: Passenger Transport Demand in Kazakhstan30 250000 Railway Transportation Municipal electric and automobile 200000 Domestic Aviation

150000

100000

50000

0 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Figure 3-15: Passenger demand per transport Figure 3-16: Passenger demand for electrified mode in Kazakh cities31 public transport modes in Kazakh cities

35 000 120 Trolleybus 30 000 100 Tram 25 000 80 20 000 60 15 000 40 10 000

5 000 20

0 0 Almaty Astana Karaganda Kyzylorda Pavlodar Almaty Astana Karaganda Kyzylorda Pavlodar

per transport mode in Kazakh cities). Tramways are theoretically in operation in Almaty, Pavlodar and Karaganda. However, in Almaty tramway services are 30. Agency of Statistics of the Republic of Kazakhstan currently on hold due to safety concerns. In Astana, 31. Agency of Statistics of the Republic of Kazakhstan the LRT line is currently under construction.

28 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN The figure on the left illustrates the potential 3.4 COMPARATIVE ANALYSIS OF risk for fragmentation, omission or duplication PUBLIC TRANSPORT ORGANIZATION of responsibilities when no dedicated transport authority is in place; the figure on the right illustrates The overall task of organizing public transport is the coordinative effects of establishing a dedicated commonly broken down according to the spatial transport authority. coverage of the transport system at stake, i.e. local The institutionalization of public transport services has public transport largely falls within the realm of local the following advantages: councils and their designated bodies. • centralization of tasks allows for coordinated Generally the set-up of a designated Transport transport planning; Authority or at least clear task allocation for planning, • cooperation and coordination allow for the monitoring, regulating and licensing local public development of coordinated and integration transport within the city’s public service administration transport services; is common practice in the benchmark cities considered for this analysis. Half of all included • solid and reliable financing mechanisms/systems examples indicated having a designated Transport are required to establish reliable and sustainable Authority in place, albeit with varying remits. services; • environmental issues can be addressed in a Illustrated below is the overall effect that can be coordinated manner; and achieved by having a designated Transport Authority in place when separating the planning and operation • there is one central point of contact for all transport of services: matters.

Figure 3-17: Fragmented responsibilities without dedicated Authority

LEVEL OF GOVERMENT PUBLIC TRANSPORT PLANNING MONITORING STATE LOCAL| FEDERAL

PROVINCIAL REGULATING METROPOLITAN LICENSING

Figure 3-18: Coordinative effects of Transport Authority

LEVEL OF GOVERMENT

TRANSPORT PUBLIC TRANSPORT Devolved AUTHORITY powers PLANNING Responsibilities MONITORING STATE

LOCAL| Representatives FEDERAL

PROVINCIAL REGULATING METROPOLITAN LICENSING

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 29 Generally the set-up of a designated Transport 3.4.1 Organizational forms in Public Authority or at least clear task allocation for planning, monitoring, regulating and licensing local transport public transport within the city’s public service administration is common practice in the included benchmark cities. Half of all examples indicated 3.4.1.1 Overall forms having a designated Transport Authority in place, As Figure 3-19: Overall forms of public albeit with varying remits. transportationFehler! Verweisquelle konnte nicht

Figure 3-19: Overall forms of public transportation

Political ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION ADMINISTRATION level

MUNICIPAL

PUBLIC SERVICE Organizational MUNICIPAL REGIONAL EXTERNAL SERVICE level ORGANIZATION ASSOCIATION PROVIDERS

LOCAL REGIONAL LOCAL \CITY ASSOCIATION TRANSPORT ASSOCIATION ASSOCIATION

Operating TRANSPORT TRANSPORT TRANSPORT TRANSPORT TRANSPORT level COMPANY COMPANY COMPANY COMPANY COMPANY

gefunden werden. illustrates the organizational level and German “Régie”); it refers to the tasks transferred of local public transport can take on at least these from the political level to the organizational level. The five principal forms, allowing for a structural division of delegation of tasks can take on various forms, such as public transport planning and operation. Depending government-owned limited liability companies, local on a city’s size and its proximity to other urban centers, transport associations, or municipal public service Transport Authorities will either serve local (for providers. larger cities) or regional (for medium to small cities, The organizational level receives funding from the clustered) transport needs. If municipal councils also political level as well as revenues from passengers operate (part of) the public transport system parallel and is responsible for public transport planning, private public transport companies can be active as operations, staff, quality management, tariff systems well. Further distinctions between the levels of publicly and revenue allocation as well as contracting with and privately run services have not been made in this transport companies (operating level). comparison. It is also possible that regional or local public transport 3.4.1.2 Stakeholders associations delegate only a few services / lines to transport companies and provide the other public The basic difference between the organizational transport services themselves. They are then also forms shown above lies in the degree of involvement responsible for fleet management. of various stakeholders: The benchmark analysis shows that mostly a) Political Level: regional or local administration: government-owned Public Transport Authorities In the European cities covered in the benchmark (PTA) or Metropolitan Transport Authorities (MTA) are analysis, the political level usually provides the general formed (e.g. Amsterdam, Munich, Bilbao, Lyon). transport planning framework as well as funding A public transport association remit is generally sources for public transportation. It is also sometimes defined by its tasks and responsibilities delegated referred to as the “principal” or “purchasing” level and from the municipal level to the association. Therefore, represents the level of decision-making, usually on distinctions in terminology must be made between: the regional level. tariff association is a cooperation between b) Organizational Level: different transportation companies in the same region Constitutes the administrative level (in both French / metropolitan area

30 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN transport association cooperates further 3.4.1.3 Public transport organization in regarding tariffs, integrated time schedules, overall traffic planning benchmark cities transport authority represents the highest form of Where public transport authorities/associations are cooperation, where all tasks regarding transport and in place, these are usually governed by a supervisory traffic planning, scheduling, tariffs and ticketing, quality management board and an elected representative management, revenue allocation, financing and committee and set-up as a consortium of the various contracting are bundled in one single organization. local/regional councils that cover the public transport services in geographic terms. None of the cities included Figure 3-20: Level of cooperation in public transport in the benchmark had adopted the model by which organization external service providers were contracted to carry out the organizational tasks for public transport services. Transport Authority In Kazakhstan the current situation is somewhat Transport different. For the two largest cities Astana and Almaty association the past years have borne discussions and plans for Tariff capacity building (UITP in Astana) and funding allocation association (EBRD in Almaty) to prompt plans for instating transport authorities in each respective city. In Astana, the Astana LRT LLP was established by the Akimat to be c) Operational Level: Transport Companies / the transport operator for the new Astana LRT system, Transport Service Providers currently under construction. Astana LRT LLP has also taken responsibility for introducing an optimized ticketing Refers to the transportation companies contracted by system, a routing app and initiated a cooperation with the stakeholder at the organizational level. In Europe, schools regarding school bus transportation. the regulations require public and independent competition between transport companies through In Almaty, Almatyelectrotrans (AET) LLP is the Bus and tender processes; public transport companies thereby Trolleybus Operator established and financed by the receive concessions for a certain number of years for Akimat. The Tramway Lines are currently suspended providing certain services at set service levels. due to poor infrastructure and resulting accidents. In Kyzylorda LLC „Avtobusny Park „Kyzylorda““ (APK) In the Republic of Kazakhstan, the transport service combines the executive functions of the Public operator shall be identified in the same manner Transport Authority (PTA) and the function of the utilizing open competition process through a tender. A carrier of CNG buses. winner of a tender then enters into agreement with the Municipal Authority for the period of 3 years at least. In the other Kazakh benchmark cities no designated Tender procedure, its requirements and detailed organizational construct to bundle the competencies description are provided in Chapter 6.5.5. to carry out the tasks of planning, procuring and

Figure 3-21: Categorization of Public Transport Authority typology in benchmark cities

Municipal organization Lisbon /Barcelona

Municipal public service with Local transport Marseille /Bilbao/ Sofia association

Municipal public service without designated Local Ostrava /Zagreb/ Katowice / Lodz transport association

Municipal public service with Transport Authority Almaty /Astana under consideration

Local /Municipal association and Regional association Lion /Hamburg / Munich

Regional association Amsterdam /Bristol / Wiesbaden / Mannheim / Bielefeld / Birmingham / Leeds / Vienna

No designated Transport Authority Pavlodar /Shymkent / Semey / Oskemen

No information Oral / Aktobe /Taraz / Karagandy Perpignan

Total number of benchmark cities per category 1 2 3 4 5 6 7 8

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 31 monitoring public transport services currently seems in a metropolitan public transport authority resumes the place. The responsibility for organizing and overseeing following responsibilities32: public transport services at the urban level is anchored For the tasks relating to planning, regulation, fare at the city council level (Akimat) here. setting and marketing the vast majority falls within the remit of the screened authorities. 3.4.2 Task of Public Transport Authorities Managing and funding public transport infrastructure in benchmark cities on the other hand is handled much more heterogeneously as highlighted in the examples The benchmark highlights that the scope of tasks considered in this benchmark. To illustrate this spread, can differ between Transport Authorities. Generally, three models were included in the following table

Table 3-5: Function and tasks of Public Transport Authorities

№ Function Tasks 1. Public Transport Planning Development of Urban Transport Plans; Development of transport planning visions; Definition of an integrated transport system (network, services, modes, quality, …); Development of a financing and investment plan; 2. Public Transport System Continuous monitoring and evaluation of the transport system (quality measures, …); Organization Organization and monitoring of contracts and concessions; Stakeholder management and contact to policy-makers; 3. Financing, Tariffs and Management of financial sources; Fares Development of an integrated tariff system; Management of revenue allocation; Continuously define investments necessary for rolling stock, infrastructure and operations; 4. Marketing and Promotion Continuous development and implementation of a marketing plan; Implementation of a reliable passenger information system

Table 3-6: Different approaches to remit assignment in public transport organizational structures Exemplary Cities: Bristol, Birmingham, Leeds Barcelona Wiesbaden

Main responsible party Task/Remit Transport Municipalities/ Regional National Authority District Council Government Government Planning Strategic Planning of services Service Planning mode integration Regulation Procuring / regulating services Fares/Marketing Fare setting/Tariff design Managing fare collection system Marketing P/T services

Infrastructure Managing P/T Infrastructure Funding allocation

Construction management

32. comp. Oliveira da Silva Cruz (n.d.), p. 24

32 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 3.4.3 Public transport Organization in Kazakh cities The different forms of public transport organization were analyzed for eight Kazakh cities. Three of these cities are presented at a more detailed level in terms of their organizational structure to highlight both the complexity and heterogeneity currently prevailing at the urban level in Kazakhstan. Figure 3-22: Present organizational structure of public transportation in Kyzylorda (200.000 inhabitants (2009) 33

Regional Akimat Founder

SPK«Baikonur» Executive body of the Founder Akimat of the city

Owner of LLC APK (100%) Public transport Authority Municipal department of housing and communal services and public transport and roads

Steering committee Company combines functions LLC “Autobus park Kyzylordy”(APK) of the executive body for PTA and CNG carrier’s company Hierarchical dependencies Dependencies of possessory Privat bus operators /carriers 33. Own compilation Stakeholders: 0.07 Euros) for all other passengers 70.00 Kazakhstan The Akimat of the City of Kyzylorda, executed by the Tenge (about 0.17 Euro). The tariff is mandatory, for city’s Department of housing and communal services, “Avtobusny Park “Kyzylorda”” (APK), for all private bus passenger transportation and roads. operators and for the private operators of line taxis. LLC „Avtobusny Park „Kyzylorda““ (APK) combines the Each bus, in addition to the driver, has a conductor executive functions of the Public Transport Authority (ticket sales person). He/she collects the fares from (PTA) and the function of the carrier of CNG buses. passengers who pay cash when leaving the bus. Paper tickets are currently issued only on line number 18, Private Bus Operators operate several bus lines in which is operated by APK. On the other lines (lines Kyzylorda. number 1 to number 17, number 19 to number 25 and Tariff System: number 30), which are under the control of private bus The existing tariff system for bus transportation in operators, no tickets are issued. In addition to paper Kyzylorda was adopted by the City administration in tickets (line number 18), no other ticket types exist. A 2013. For all bus routes and route taxis a flat rate tariff system of daily or monthly travel passes or electronic applies regardless of the distance travelled. One-way tickets, as well as tickets purchased by passengers in trip costs for students 30.00 Kazakhstan Tenge (about advance, do not exist either. Figure 3-23: Existing Public Transport structure in the City of Almaty

LPP «Transport Holding of Almaty» Government of RK (Almaty is city of national significance) ONAY integrated e-ticket

Akimat LLP «Almatyelectrotrance» Elaboration of general “Department of passenger transport and roads» political strategy Buses and trolleybuses (+ trams are temporary not under operation) Strategic planning at city level State /municipal owned company 20 bus operating companies «Metropoliten»

Bus lines concession Operator of metro system

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 33 Stakeholders: Travel Pass system “ONAY” was introduced in 2015; tickets for one trip only without the right to transfer LLC “Almatyelektrotrans” (АEТ) from one mean of transport to another. LLC “Transport Holding for the City of Almaty”, Tariffs are corrected with irregular intervals. responsible for the travel pass system ONAY (ОНАЙ) PT network / projects Municipal-State company “Metropoliten” AET mainly operates about 100 bus routes, as well 20 transport operators (autobusses). as eight trolleybus routes. The tramway is currently Tariff System: suspended. Additionally, 20 private bus carriers provide services throughout the city. Tariffs are the same for all companies, but the income from the sale of tickets is collected by each company Since 2011 the Almaty metro system is in operation separately (AET, 20 bus transport companies and the with one branch line. metro system).

Figure 3-24: Existing Public Transport structure in the City of Astana

State Enterprise «EsilAstana» Government of RK (Astana is city of state significance) Water transport management

LLP«Astana LRT» Akimat Elaboration of general strategy Management of bus carriers and LRT (under construction) Strategic planning at city level JSC «Bus park №1»

Management of bus operation “Department of passenger transport and roads» LLP «Parkingservice»

Construction and management of parking venues Administrative Management LLP «CVT of Astana city”

Vocational training center Stakeholders: 14 private companies See above figure.

Tariff System: Bus carriers It was planned by Astana LRT LLP to implement a new electronic ticketing system in 2016. This shall include registration of frequent users (e.g. students) and allow The Astana LRT LLP developed a new transport model for an easier choice of tariffs and payment method34. in 2016, starting with a fleet modernisation programme The Astra Bus App was introduced in 2016 allowing for busses. Until end of 2018 350 overaged vehicles passengers to check fastest routes. are expected to be exchanged for new ones35. Public Transport Network / Projects The trolleybus system was quit in 2008 for energy bill reasons. Astana’s public transport network is primarily operated by busses and so-called Marschrutki (“Marschrutnoje Astana LRT has also started negotiations in 2016 with taksi”), they are the size of a minibus and a form of line- schools in order to implement a special school bus based shared taxi system run by private operators. service.

34. http://www.inform.kz/en/astana-to-implement-e-payment-system-in-public-transport-by-yearend_a2930866 35. http://astanatimes.com/2016/03/15187/

34 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN The newly built LRT network shall have a length of Figure 3-25: Existing paper tickets from APK in approx. 20km, 18 stations and shall transport 150.000 Kyzylorda in the year 2014 passengers per day36. Its construction costs are estimated at 1,8 billion US-Dollars. Kazakhstan has a loan agreement with a chinese bank for 20 years at an interest rate of 2,5%. The construction shall also be implemented by a Chinese engineering company. The project is cofinanced by the ADB with 716.000 US Dollars. The city Akimat appointed a Kazakh Systra Projekt Management Consortium as consultant for this project. According to a press release from May 2017, constructions shall start now and be finished in 2018/2019. 3.5 TARIFFS AND TICKETING SYSTEM Single travel ticket: In case of cash payment a passenger receives a single ride travel ticket, which is 3.5.1 Tariff and Ticketing in Kazakhstan valid only for one route in one direction. A single ticket Tariff determination procedure in Kazakhstan is does not specify the number of stops and distance, governed by the Law No.476-II. Pursuant to Article which a passenger is entitled to travel. Should a unit 19 of the Law, tariff for regular public transportation of of public transport be unable to complete the route passengers and luggage in cities shall be determined due to certain circumstances, passengers with single by Akimat. The determined tariff shall be considered tickets can use them for another public transport unit as a basic single fare rate for all routes in the city. with the purpose to complete their travel and arrive in a point of destination. On 5 May 2017 the Government of Kazakhstan amended the Law specifying a modified approach of Multi-ride travel ticket: Such ticket types are calculation for a differentiated tariff. Previous revision available for cities’ public transport only. Multi-ride of the Law determined only two basic indicators to be travel tickets are bought in advance/prior to boarding. considered for differentiated tariff calculation purpose: The ticket can be bought in special sales offices distance or number of stops. This methodology identified by Akimat or at the entrance to public proved ineffective and the Government decided transport, provided the public transport staff have it for to increase the number of indicators available for sale. differentiated tariff calculation. Starting 5 May 2017, Fares: According to information available in the legal the Law identified the following basic indicators: data base utilized for the analysis, fares in the cities of • type of route; Kazakhstan are currently as follows: • type of travel ticket; Table 3-7: Current single fares for use of public • type of payment; and transport in Kazakh cities • distance of the route or number of stops. FARE in LIST OF CITIES FARE in USD Any tariff specified by a municipal authority is subject to Tenge approval by the local legislative authority (Maslykhat).. Astana 90 KZT $ 0,28 Payment: The Law „On automobile transport “ Almaty 80 KZT $ 0,25 considers paper and electronic forms of passes Kyzylorda 70 KZT $ 0,22 (tickets). Currently the electronic form of tickets are used in Astana – transport card «ASTRA Plat» and Shymkent 70 KZT $ 0,22 in Almaty “ONAY”. The payment procedure is written Taraz 55 KZT $ 0,17 in the Order of Acting as a Minister of Investment Petropavlovsk 80 KZT $ 0,25 and Development of the Republic of Kazakhstan of Oskemen 90 KZT $ 0,28 March 26, 2015, No. 340 «On approval of rules for the transport of passengers and luggage by road Aktobe 55 KZT $ 0,17 transport». Aktau 50 KZT $ 0,15 Types of tickets: According to Kazakhstani Aturay 50 KZT $ 0,15 regulations, the definition “ticket” means a hard Zhanaozen 40 KZT $ 0,12 copy document or e-document, which confirms the Zhezkazhan 60 KZT $ 0,19 standard form contract for carriage of passengers. Taldykorgan 60 KZT $ 0,19 Kokshetau 60 KZT $ 0,19 36. http://astanatimes.com/2017/05/astana-to-begin-light-rail- system-construction-in-may/ Karaganda 80 KZT $ 0,25

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 35 Figure 3-26: Higher single fares can be found in cities with higher GDP/capita rates $4 $80 000

$3,5 $70 000

$3 $60 000 Cost of single P/T city fare $2,5 GDP/capita $50 000

$2 $40 000

$1,5 $30 000

$1 $20 000

$0,5 $10 000

0 0 Lyon Lodz Sofia Leeds Bristol Bilbao Lisbon Almaty Vienna Aktobe Munich Ostrava Bielefeld Marseille Katowice Hamburg Perpignan Barcelona Mannheim Karagandy Wiesbaden Amsterdam Birmingham Astana (greater area) When comparing single fares (regular price, i.e. no • establishing fare revenue allocation procedures concessions) as they currently stand according to should tickets be valid for travel on services run P/T operator or authority information (respective web- by several operators; and pages or press releases) it emerges that (where data/ • setting up review procedures to ensure and allow information for both indicators is available) there is a regular tariff structure alignments. correlation between the cost of public transport to the individual passenger and a city’s GDP per capita. Recommendations for Kazakhstan in general/ 3.5.2 Analysis of Tariff and Ticketing Almaty in particular: Reviewing the current tariff Systems in Europe structures in Kazakh cities it emerges that single tickets devoid of distance or time-based grading exist Of the cities included in the benchmark and with tariff/ with the costs only differing slightly per city. When ticketing information publicly available the vast majority comparing the situation between the Kazakh examples displays a differentiation in tariffs according to: and the other European cities as shown in Figure • Distance covered (usually zones, either as “rings” 3 26: Higher single fares can be found in cities with or as “honey-combs”); higher GDP/capita rates it emerges that in cities with • Time of day travelled (differentiation between a mature public transport system and corresponding peak/off-peak; weekday/weekend); organizational structures the single fare pricing policy has been aligned with their passengers’ overall • Type of traveler (occasional, frequent, tourist); and economic prosperity level. Given GDP per capita is • Concessionary entitlement (young children, forecast to continue its rise in Kazakhstan, a thorough elderly, disabled, unemployed). tariff and ticketing review seems called for. The graph The figures above show two different types of possible supports this by indicating that for the Kazakh cities tariff structures: Figure 3 27 shows the Ring Zone with available (especially Almaty and Astana) data system in Munich: the 16 ring zones suggest a high single fares could be raised to match increases in spatial resolution and grading of prices. Figure 3 GDP per capita, whilst discussions should be initiated 28 shows the honeycomb structure for tariff zones to devise a more graded approach. However, this in Mannheim with inner-city combs that are more discussion should not take place in isolation but must expensive than the combs covering the outlying areas be widened to abolish any unitary pricing policies still between the cities. in place and to include: A combination of the above parameters is frequently • ascertaining willingness-to-pay amongst current encountered (e.g. annual pass covering several and prospective passengers: zones) and serves to further grade the public transport • devising spatial and temporal grading of ticket/ tariff system. Furthermore, a trend can be observed tariff structure; in European cities by which the public transport • defining concessions and eligibility criteria for services on offer have expanded to include the use certain societal groups; of rent-a-bike schemes and, in some instances, car

36 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-27: Ring zones Tariff System in Munich 37 Figure 3-28: Honeycomb structure for tariff zones in Mannheim38

sharing schemes as well. Usage of these has been Figure 3-29: Age structure of registered cars in incorporated into the information, ticketing and tariff 2014 in Kazakhstan39 system to encourage urban multimodality and to reduce perceived and actual access barriers (locate, 73% use, pay – all one system) to car-free travel within and around the city. A combination of zone- and time-based rates allows passengers to transfer between modes (and transport operators), thus, easing travel. 3.6 ENVIRONMENTAL ISSUES 8% 7% 7% 6% 3.6.1 Environment and noise less than 3-5 years 7-10 years more than unknown 3 years 10 years 3.6.1.1 Greenhouse gas emissions and air quality As the figures for car ownership levels showed, the increasing number of cars combined with increasing urbanization in Kazakh cities result in higher road traffic Figure 3-30: Carbon Dioxide emissions in volumes, higher road congestion, a difficult parking Kazakhstan 40 situations in the city centers as well as an increased 250 000 air pollution problem. The latter is further magnified by the advanced age of the vehicles. 200 000 The age structure of the registered cars shows that three quarters of all private cars in operation are 150 000 older than 10 years. Thus, the most recent ecological standards for private cars implemented in Almaty, for 100 000 instance “Euro-4” and higher, do not apply to cars of

50 000 37. Source: MVG – Munich’s Public Transport Company 38. Source: VRN – Public Transport Authority for Mannheim and 0 surrounding cities/area 2005 2015 39. RFCA 2016 2000 2001 2003 2004 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 40. Agency of Statistics of the Republic of Kazakhstan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 37 Figure 3-31: Example of Air Quality Index for Figure 3-32: Example of Air Quality Index for Benchmark City Leeds42 Benchmark City Bilbao43

older generations. This situation additionally worsens this as well with the Air Quality Directive 2008/50/EC the air pollution problem in Kazakh cities. which must be adhered to in national law. It sets limit and exposure values for harmful pollutants including In Almaty, for example, 85% - 90% of all emissions PM10 and NOx. At the city level then municipalities stem from the transportation sector; emissions per have the responsibility to address air quality. Best vehicle type have the following breakdown: 1% practice examples such as Leeds ensure their City electric, 77% cars, 22% busses . Air Quality Action Plan is accessible to the public. This

Unsurprisingly then CO2 emissions in Kazakhstan stringent tiered approach is currently not apparent in have continuously been on the rise since 2000. Kazakhstan. For all cities for which information was publicly Given Almaty faces serious problems from car- available the benchmark analysis revealed that urban induced pollution – around 85% of air pollutants in air quality monitoring stations and publicly accessible Almaty stem from vehicles46, the city should urgently information regarding emission levels are at hand. consider introducing urban access restriction Daily data presented for the main pollutants along measures (see next section). Efforts to address with the current weather conditions and an overall these issues are apparent in the development of assessment of the air quality can be accessed via the AUA-App and the CAST 2013-2023 including the web (see examples in Figure 3 29 and Figure 3 the strengthening of public transport services (pull 30). For Kazakhstan no comparable publicly available measure), however, push measures such as parking information at such fine temporal resolution (real- management, restricted access to certain areas time) could be found. and/or road user charging should be considered However, the city of Almaty has introduced an app “Almaty Urban Air” (AUA) to assist air quality 45 monitoring and encourage public awareness of the Figure 3-33: Screenshots from the AUA-App pollution problem. It should also assist city planning and decision-making practices44. Air quality is addressed both at the national as well as the city level in the benchmark cities. For all European cities the supranational level addresses

41. Yerzakovich 2011 42. Air Quality Index for Leeds: http://aqicn.org/city/united- kingdom/leeds-centre/, site accessed 08.06.2017 43. Air Quality Index for Bilbao: http://aqicn.org/city/spain/pais- vasco/bilbao/europa/, site accessed 08.06.2017 44. Shatayeva (2017) 45. Kazimu News (2015) 46. UNEP (2015)

38 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-34: Ozone exceedance days for benchmark cities 90

0 Oral Lyon Lodz Sofia Taraz Leeds Bristol Bilbao Lisbon Almaty Vienna Semey Aktobe Zagreb Munich Ostrava Bielefeld Pavlodar Marseille Katowice Hamburg Oskemen Shymkent Perpignan Barcelona Mannheim Karagandy Wiesbaden Amsterdam Birmingham

Данные доступны Astana (регион) Нет данных in parallel. At the higher level, however, Kazakhstan emissions are not the only source contributing to currently still lacks a National Air Quality Policy urban pollution in Kazakh cities. Nearby industries (UNEP, 2015). To guide and regulate efforts across are major contributors too and without adequate all cities such a policy should be developed. Kazakh regulations here the overall environmental situation cities need not necessarily adopt the European cannot be improved solely by efforts undertaken in threshold levels for harmful GHG emissions; however, the transport sector. tolerable upper limits should be identified as well as the duration/number of days acceptable for exceeding these. Coupled with threshold definitions 3.6.1.2 Cars: Low emission Zones, Congestions discussions must focus on mitigation measures as charging and Parking Strategies well as emergency measures, should thresholds be In order to address issues of urban environmental exceeded. Cities such as Almaty with its proximity to an extensive mountain range face the additional quality and noise reduction caused by transport, the challenge that the topography further worsens the benchmark has shown that improving public transport air pollution situation by forming a natural barrier and infrastructure for walking and cycling alone (pull for lower atmospheric layers. The implementation measures) will not suffice to achieve a better quality of a city-wide monitoring and reporting system of life in urban centers. Push measures must be coupled with publicly accessible alerts constitutes implemented as well. These are primarily grounded in the first step. Clearly, however, traffic-induced GHG discouraging private car users to frequent or traverse

Figure 3-35: Top down policy structure for air quality applicable to EU city benchmark examples

SUPRANATIONAL NATIONAL LEVEL MUNICIPAL LEVEL LEVEL (ЕU) (LAW IN COUNTRY) (CITY IMPLEMENTATION)

Air Quality Directive National Air City Air Quality Protection Acts Action Plans

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 39 the city center. Higher parking fees and/or vehicle bans Half of all cities analyzed have a low-emission zone in can be graded and achieved by means of: place, thus, curbing the access of polluting vehicles to city centers. Introducing green zones where only vehicles of a certain standard (no older than e.g. 5 years, alternative fuels…) As one example from the benchmark shows, the can enter certain zones of the city. Eligibility to do so Czech city of Ostrava has considered the effectiveness must be clearly displayed in the vehicle. Zones must of low-emission zones in its inner city center as part of be marked with clear signage in order for enforcement its Sustainable Energy Action Plan 2020. It concludes teams to perform efficient checks and issue fines if that international and national research has shown regulations are not adhered to. that the implementation of low-emission zones does not impact the overall transport levels on urban Low-emission zones (LEZ) are defined as areas where roads49. This is confirmed by a scientific study which certain vehicle types are restricted based on their comprehensively investigated the effectiveness of polluting levels. The aim is to improve the air quality in LEZ to reduce harmful pollutants (NO2, NO and NOx) these zones. Hybrid electric vehicles, zero-emission across the German cities with LEZ already in place. vehicles are exempt from the ban. In Europe the Results suggest a statistically significant, however, establishment of these zones is regulated in the Urban small reduction of pollutants associated with LEZ- Access Regulations. Many German cities have to date measures.50 established so-called “Environmental Zones” and vehicles must display a badge (green, yellow or red) in Congestion Charging: Road tolls to access the accordance to their emission standards (Euro Norm) inner city center have so far only been introduced diesel and petrol engines are categorized by pollutant in a few cities – London being the much cited class 1-4, whilst 1 is not eligible for a sticker due to high examples. From the benchmark Munich, Zagreb emission levels (Euro 1 or older). Road signs inform and Birmingham are currently revising the option of drivers which category cars are allowed to enter the congestion charging whilst Leeds intends to introduce zones – the strictest regulation allowing green badge such a scheme by 2020. The uptake of this type of holders only to access certain area. Parking wardens urban access restriction has been smaller, not least can issue a fine amounting to $50, if vehicles are parked due to the political feasibility and public acceptability in the wrong zone.47 of this type of scheme.

Figure 3-36: Low Emission Zone eligibility badges Parking Strategies: Managing inner city parking and official road sign (Germany)48 has become common practice in urban area. All cities included in the benchmark for which data was available indicated having parking management in place, meaning city parking must be paid for on a location and/or time-based tariff system. Revenues are often channeled back into road infrastructure improvements of public transport enhancements. As example, city of Leeds has a holistic approach to parking: The City of Leeds possesses a Parking Policy Document51 with also includes guidance on bicycles Whilst no information for the Kazakh cities in the and electric vehicle charging points. For parking benchmark was available, the 21 European urban purposes the city has been split into zone, each with its centers included in the analysis displayed the following appropriate guidelines clearly set out. The document current status: defines the hierarchy of parking that has to be adhered to if all transport modes are considered in terms Figure 3-37: Benchmark cities’ current status on of their parking needs. Herewith the City of Leeds LEZ demonstrates good practice in terms of exemplifying how a municipality’s Local Transport Plan can be LEZ active implemented at the detailed, measure-defining level. Furthermore it demonstrates how the policies for Land Limited LEZ 48% 5% Use Planning set out in the National Planning Policy Framework (NPPF) have been adopted in the city’s Core Strategy to address current and future parking No information 9% 47. Bates (n.d.) 48. Source Image: http://www.europebycamper.com/p/country- guide_01.html, site accessed 08.06.2017 LEZ planned/ 49. Covenent of Mayors (2013) considered No LEZ 50. Morfeld, P et al (2014) 19% 19% 51. Leeds City Council (2016)

40 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 3-38: Congestion Charging considerations Figure 3-39: Parking Management Strategies in in benchmark cities benchmark cities

No Partially Yes 43% 3% No information 0% available Planned 42% 7%

No/Under revision 7% Yes n/a 55% 43%

Figure 3-40: Implementation steps for establishing LEZ

Vehicle categorization according City zones definition with Pollution threshold definition 1.1 emission level 1.2 1.3 restricted access

Development of enforcement 2.0 strategy

Restrictions and phase-in for Restrictions and phase–in for 2.1 trucks 2.2 cars

Development of marketing and Enhancement of pull factors - Development of Enforcement 3.1 educational campaign 3.2 shift to PT services 3.3 measures

Combination of further polices- 4.0 Push factors

Introduction of toll roads/ Introduction of urban fright Parking management 4.1 congestion charging 4.2 4.3 management needs. To ensure drivers adhere to the parking rules, 3.6.2 External Costs of transportation enforcement officers check on the managed parking facilities regularly and will issue fines for any driver without a valid parking permit. 3.6.2.1 Comparison of transport modes Lessons learned from Urban Access The following table shows the average energy consumption, CO emissions and passengers Regulation and implementation measures: 2 carried for various urban transport modes. From an Case studies have shown, that usually a mix of access environmental perspective private transportation with regulation measures are put in place. Phasing in of cars and motorcycles produces the highest amounts these seems common practice. E.g. Barcelona has of CO2 emissions and energy consumption whilst started restricting access to urban area on days with simultaneously having the lowest number of average particularly high air pollution. Here an “emergency passengers. Interurban busses also have a higher scheme” is in place. This will be superseded by the energy consumption and CO2 emission, but they have introduction of a LEZ and associated stickers per the capability of transporting up 150 passengers. Also, vehicle type, allowing the public to gradually familiarize busses can be implemented as more environmentally itself with the concept. friendly trolleybuses (with overhead catenary systems)

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 41 Table 3-8: Comparison of Transport Modes53

Motorcy- Electric Soft Car Diesel train Bus Tramway Metro cle train modes52 Average number of 1,35 1,1 80 68 9 36 113 1 passengers Maximum number of 5 2 150–1000 150–1000 70–150 100–263 400 1 passengers Distance covered 0–1000 0–500 20–250 20–250 1–5 1–10 2–10 1–3 (km) Energy consumption 35 33 15 18 38 12 11 0 (GeP/Pass-km)

CO2 Emission 105 101 4 59 120 3 3 0

or innovative propulsion systems can be applied, It is thus advised to always keep in mind the indirect such as hybrid or gas. Trains, metro and tramways costs of traffic and urban mobility. are environmentally friendly and have very high The following figure shows the cost components from capacities, however, they pose a higher financial and a collective viewpoint in Lyon. In total, urban mobility maintenance burden on the infrastructure companies costs approx. 1.066 USD per person per year, the responsible for the track network. majority of which stems from automobile traffic In public transportation funding, the loss-making (70,3%), followed by urban public transportation characteristic is often interpreted as a major weakness (27,2%). The costs for automobile urban traffic include of the system itself as it requires substantial government the following factors: funding and subsidies. The costs for private means of • Vehicles, their maintenance, and fuel (69%), transportation are often not considered as they are • Parking fees (21%), paid by inhabitants. • Road infrastructure (10%). The example of Lyon shows that the costs for private transportation are higher than for public transportation The Lyon study calculated that these numbers – for both the individual as well as the state. This correspond to a total average cost of 0.25 USD per approach is too short-sighted as the following analysis passenger-kilometer, differentiated by transport regarding costs components of urban transportation mode: in general in Lyon illustrates. • Cars: 0,21 USD per passenger-km Figure 3-41: Cost components of urban mobility in • Urban public transport: 0,46 USD per passenger- Lyon54 km • Motorized two-wheels: 0,37 USD per passenger- km

Urban Public These figures cannot be interpreted in isolation. From Transport a governmental point of view, it spends slightly more 27,2% on individual transportation per person than for public transportation: 76 Euros per person per year for roads and parking, and 70 Euros per person per year for public Others 2,5% Automobile 70,3% 52. Refers to bicycles as pedestrians 53. Mission interministérielle pour le projet métropolitain Aix- Marseille-Provence (n.d.), p.40 54. Nicolas (n.d.), p. 10f.

Figure 3-42: Use of road space per person by car (2) and public transportation (3)

42 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN transport. Private households spend on average 926 Table 3-9 shows the estimated urban congestion USD per person per year on individual transportation costs in the benchmark countries included in this via cars and 83 USD on public transportation. This of analysis for both above mentioned indicators. These course is highly variable depending on household size, are highly sensitive to external factors, such as overall income, location within the city, etc. Additionally, other motorization rate, speed-flow curves as well as base external financing factors such as company funding of data source. Nonetheless, the analysis offered ЕС by either public transportation or parking facilities need this latest study shows that urban congestion has an to be taken into account as well. impact on overall GDP development. The numbers show that delay costs and deadweight loss are The following figure illustrates what the numbers on significantly higher in Western European countries, congestion costs and urban transport costs suggest though at the same time the influence on the GDP is by also putting it in relation to use of road space. lower compared than to Eastern European countries, meaning that Eastern European countries suffer 3.6.2.2 Congestions costs economically more from congestion and its implied One frequently neglected issue is the external costs costs. of individual transportation. The latest EU study on The reason for this needs yet to be determined urban mobility from 2017 provides a comparative by further EU studies. Nonetheless, the following approach to analyzing and understanding the amount assumptions can be made: of costs in relation to the national GDP concerning • The GDP is generally higher in Western European traffic congestion . Taking into consideration the costs countries, thereby influencing the relation between of energy consumption, time loss and emissions, two congestion and GDP types of assessing congestion costs are differentiated: • As the benchmark also shows cities in Western 1. Delay costs: Refers to the monetary value of the European countries show more cases of delay each vehicle experiences in traffic congestion environmental city zones as well as strict compared to free-flow conditions; answers the rules regarding motor and exhaust filters and question “What is the cost of road congestion?” demonstrate a higher attractiveness of sustainable 2. Deadweight loss: Measures the loss of economic public transportation alternatives efficiency when the equilibrium between price paid and services given is not achieved and helps understand the influence of political interventions to alleviate congestion; takes into consideration individual’s willingness to pay.

Table 3-9: Annual urban congestion costs by benchmark country56

Annual Urban delay Urban Delay Costs: Annual urban Urban deadweight Country costs Share of GDP deadweight loss loss: share of GDP Mio. USD / year % Mio. USD / year % Austria 1.300 0,39 138 0,04 Bulgaria 755 1,81 78 0,18 Croatia 853 1,73 85 0,18 Czech Republic 1.539 0,89 165 0,1 France 15 0,71 1.606 0,07 Germany 19 0,71 2.269 0,08 the Netherlands 3.700 0,57 401 0,06 Poland 4.600 1,2 505 0,12 Portugal 1.800 1 189 0,1 Spain 11.000 0,96 1212 0,1 UK 24.000 0,71 2.290 0,06 EU-28 120 0,77 12.000 0,08

55. Brannigan et al. (2017), p. 11ff. 56. Brannigan et al. (2017), p. 11ff.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 43 TENDERING AND CONTRACTING IN PUBLIC TRANSPORT 4

Generally public transportation systems are and obligations of both partners (timetable, tariffs, understood to be a public good and follow the key quality…); objective of serving the public will. Public transport 2) Definition of the public transport service with a fixed services can be offered by both private as well as budget to be delivered; public transport companies. One of the key criteria for public services is the affordability for a majority 3) Definition of penalties and rewards concerning of citizens. Consequently public transport services quality of services; usually cannot reach profitability and growth whilst 4) Definition of the compensation payment to the remaining affordable under high quality measures. operator; Therefore, public transport services are usually cofinanced and subsidized by the government. In cities 5) Definition of the use and ownership of assets (rolling and countries with a reliable and integrated public and infrastructure); transportation system, it is therefore acknowledged 6) Monitoring; and that public transportation requires extensive funding from public sources, which can be diverse (see 7) Increase of transparency. Chapter 5). The decision-maker in Kazakhstan should therefore The procurement of urban public transport services take forward a structured contractual set-up to enable includs both, the formal and the qualitative selection the implementation of such a process. With regard to criteria in the form of Public Service Contracts tender evaluation criteria, Kazakh local governments are advised to take responsibility of this by assuming (PSC) and service concessions, which specify the the role of organizing body screening potential bids for relationship between the tendering public authority price and quality levels. and the transport operator. It is recommended to consider the bid price as one of the main criteria for contract awarding in public 4.1 CURRENT PUBLIC service transport contracts. However, this requires a sufficient number of potential bidders in the specific TRANSPORT PROCUREMENT regional and local market. PRACTICES IN KAZAKHSTAN The use of contracts and concessions is a viable Public Transport procurement procedures are solution for both the state and transport companies governed by national level regulations and require to arrange high-quality public transport services while significant efforts from the Akimat (local implementing simultaneously allowing transport companies to exist authority) to be implemented. and thrive as well (be it private or state-owned). By means of service contracts and concessions various In accordance with the Law №476-II, scheduled financial risks are allocated among the contracting public transport services for passengers and parties. luggage are provided by private operators in each case the successful bidder of a tender procedure. Key aspects of this approach are: The successful bidders enter into an agreement on 1) Definition of tasks and responsibilities/rights public transport services with the municipal authority

44 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN and, thereafter, receive the authorization to operate Service Contract – PSC) within 10 calendar days services. from the date of issuing the formal protocol on the successfully conducted tender. The tender procedure is specified in the Rules of Public Vehicle Transportation Services for Passengers In accordance with Article 13 of the Law №476-II, an and Luggage, approved by the Order № 349 of the authorized State body is in charge of development Acting Minister for Investment and Development of and approval of the template of the public transport the Republic of Kazakhstan, dated March 26, 2015 services contract. The authorized State body is the (hereinafter the Rules of Transportation Services). Ministry for Investment and Development of the Award criteria are specified in the Appendix 6 to the Republic of Kazakhstan. By Order № 348 dated Rules of Transportation Services and include the March 26, 2015 the Acting Minister for Investment and following: Development of the Republic of Kazakhstan approved the contract template. Its content is governed by the • Operating period of vehicles owned by the bidder; Law of the Republic of Kazakhstan dated July 4, 2003 • Number of vehicles owned by the bidder; № 476-II “On the motor vehicles». According to the • Experience of the bidder with public transport Article 23 of the Law, a contract on regular public services (period measured in calendar years); transportation services for passengers and luggage • Infrastructure owned by the bidder; shall include: • Fleet replacement plan and procedures; • tariff; • Additional improvements for passenger • procedure for ticket sales and sale locations. transportation services. Tickets checks with ticket holders; • amount and timeline of subsidies allocated for the The procedures of arranging and conducting the tender are stipulated by Articles 165-183 of the Rules routes where the fare revenue does not cover all of Transportation Services. The articles outline details expenditures and transportation; of the process, providing outstanding information on • timetables, type (class) and the number of buses, timelines and actions which are to be adhered to by trolley buses, minibuses, operated on the route; organizers and tender participants. The information • requirements for bus fleet renewal/maintenance, must be publicly available. including minibuses, trolley-buses assigned to the Akimat plays a key role in the tender process and acts route; as the tender initiator and organizer. Bid evaluation • sanctions in the case of a breach of contractual and contract award procedures are also conducted obligations or improper performance of obligations by Akimat. under the contract; The overall timeline for tender procedure and • contractual duration period (shall be 3+ years); conclusion of the contract takes up to 105 calendar and days. The actual time required for any particular case • possible prolongation of the contract. depends on how smooth the tender process runs: Public transport organization procedures in • If all requirements are met and Akimat received two Kazakhstan are both comprehensive and time consu- or more suitable applications, a tender will take up ming. The current practice of tender processes and to 55 days. bid evaluation are wide-ranging and provide sufficient • If Akimat receives one application only, a tender level of details, which allow Akimat to come up with will be considered unsuccessful and a second fair and transparent tender results. Simultaneously, Request for Proposal will be issued on the matter. however, the Government of Kazakhstan has If a second tender round is called for, the entire developed a very simple contract template for public process may take up to 105 days. transportation services, herewith tying the hands • A clear weakness of the tendering process is the of the local Implementing Authority (Akimat). The fact that the price offers of the bidders plays no analysis reveals that the level of detail provided by the or only a minor role as a selection criterion. Often national government is at times too high and does not «soft» criteria play a decisive role. The award allow for amendments and adaptions at the local level, therefore is not always transparent. Furthermore, where it is needed. Also, the contract template needs monitoring and enforcement of contracts is weak to be revised considering actual needs and issues or non-existent. For the last 10 years there is Akimat faces working with public transport operators. no known case that a contract was terminated Monitoring and enforcement of the contracts are because the transport operator failed to adhere weak. There is no contract was terminated because of to the requirements in the contract or the services the transport operator could not fulfil his obligations/ they promised to deliver under their own tender or delivered a bad service quality in the last 10 years. bid. Thus, the regional and local level governments need When the winner is identified, Akimat has to conclude to be given the authority to make changes taking into the contract for public transport services (Public consideration local conditions.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 45 specified in the contract by date of signature. In case a 4.2 PUBLIC TRANSPORT route is newly developed, Akimat is not able to evaluate CONTRACTS IN KAZAKHSTAN AND whether the route will be commercially unprofitable/ profitable for an operator. The decision of profitability, BEST PRACTICE EXAMPLES which is the subject of subsidy, is the responsibility of the Maslykhat. In case a tariff is the subject of A key aspect related to both, public transport tendering adjustment, Akimat shall proceed with the contract’s and financing are public transport contracts / Public amendment and specify a new tariff accordingly. Service Contracts (PSC). “Public service contract” refers to one or more legally binding acts confirming PSC are the essential backbone of an effective and the agreement between a competent authority and a efficient market organization, whether contracts are public service operator to entrust to that public service awarded by competitive tendering or not, following operator the management and operation of services the EU Regulation 1370/2007. The European rule subject to public service obligations; depending on the demand the existence the existence of a PSC whenever existing national legislation.57 an authority decides to grant the operator an exclusive right and/or compensation in return for the discharge The following figure schematically depicts the of public service obligations by setting minimum components for a PSC in P/T: harmonized rules for tenders whose monetary value The template of the contract in Kazakhstan was exceeds a certain threshold and which are presumed analysed and the following weaknesses were to be of cross-border interest. The Law ensures that identified: the award of contracts of higher value for the provision of public goods and services must be fair, equitable, 1) Terms and conditions of the template are transparent and non-discriminatory. For tenders considered too simple; of lower value however, national rules apply, which 2) The outlined roles and responsibilities of the parties nevertheless have to respect general principles of EU are too general; law.58 This includes detailed considerations prior to establishing a public transport contractual system: 3) Terms of fleet modernization and/or renewal are not detailed enough and do not provide different 1.) Select transport operators: In Europe for calculation mechanisms based on a production date example, the European Commission requires an open of vehicles; market competition and thus EU-wide procurement procedures over a certain overall sum apply. 4) The fact that templates for contracts were provided on a national level and local Akimat are prohibited from making changes leads to inflexibility and a lack of 57. Reference to the text of the “Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 adaptability to local conditions; on public passenger transport services by rail and by road and 5) A conflict of authority and responsibility between repealing Council Regulations (EEC) Nos 1191/69 and 1107/70” Akimat and Maslykhat regarding the ana¬lysis of 58. Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport route profitability and subsidies emerges: Subsidies services by rail and by road and repealing Council Regulations for routes, which are the subject of the contract are (EEC) Figure 4-1: PSC components

QUANTITY QUANTITY OF SERVICE OF SERVICE EXCLUSIVITY PAYMENTS OF ROUTS SERVICE

RIGHTS AND TARIFFS OBLIGATION OF ALLOCATION OF PUBLIC PARTIES REVENUES SERVICE CONTRACT ROLES AND TASKS OF ALLOCATION COST PARTIES INFRUSTRUCTURE

MANAGEMENT AND MONITORING USE AND OWNERSHIP CONTRACTS AND CONTROL OF ASSETS

46 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 2.) Decide on type of contract: The type of Such a monitoring system should include the following: contract chosen depends on the risks assumed with the 1. Identification of the objectives and target criteria to services. In EU countries generally, net and gross cost be monitored (the quality criteria should be aligned contracts are differentiated in public transportation and with private operator conditions. For example without dominate the contract landscape in Western Europe59. adequate compensation the operator cannot replace For gross cost contracts the the cost risk is with the the old fleet or provide modernization, today a operator, while the revenue risk is with the authority significant issue in most Kazakh cities); (PTA). If the revenues, as well as the difference between costs and revenues are the responsibility of the local 2. Identification of acceptable service quality target Government, then automatically the Government will values; become interested in tariff setting and revenues. Low 3. Identification of relevant indicators to measure the fares means that the Government automatically has to target criteria; pay more compensation and higher fares will reduce the amount of subsidy/compensation. For net cost 4. Identification of sound measurement methods for contracts both, the cost risks and the revenue risks, each quality indicator; are with the operator only. In both cases the required 5. Definition of data collection and analysis method/ Service Payment will be subject to a transparent tender. approach; and Incentive/penalty regulations can be applied for both. Under net cost contracts, the transport operator usually 6. Access regulation for results and application of has an intrinsic motivation and interest for good quality correction measures, where required. services in order to ensure high passenger rates and Based on the best international experience thus high incomes through fares and tickets. In gross implementing PSC in the public transport sector in cost contracts, this intrinsic motivation is not promoted, Kazakhstan could have the following benefits/ impact: but can be applied trough incentives and/or penalties. • Stable long-term framework conditions necessary But, under the present legislation, in Kazakhstan it is to efficiently and effectively run public transport currently not possible to apply gross and net contracts. services. Therefore, the PSC must become the recommended legal format for public transport organisation and • Minimization of the higher-level political involvement operation in Kazakhstan. in daily P/T operations and management. • Risk sharing between parties in fleet operation and 3.) Clearly define contract duration: Europe provision of stable passenger services. contracts can cover 10 to 25 years, depending on the transport mode(s) and network coverage. • Clearly defined public transport organization with approved monitoring and reporting system 4.) Ensure transparency and adherence to (measuring the overall quality of the whole P/T system contractual obligations: It is necessary to clearly as the base to optimize P/T operational levels). define the criteria for transport services. For means • Clearly defined (and allocated) tasks between the of transparency, the transport operator should at authorizing body and private operators. least submit annual reports on the implementation of its services including number of delays, number • Transparent revenue collection and distribution (in of cancellation of services, reasons for delays/ case of integrated transport system with multiple cancellations, maintenance situation of the vehicle operators). fleet, analysis of passenger demand, implementation • Fixed city budget for P/T sector development. of quality management measures, etc. It is also • Defined compensation payment to the operators suggested to decide whether to use an incentive therewith increasing the financial stability to plan or penalty-based contractual system to ensure fleet modernization/ or replacement. adherence to contractual agreements. 59. Oliveira da Silva Cruz (n.d.), p. 38 ff: Net cost contracts: The PSC analysis reveals that public compliance (including risk lies with the transport operator. The public transport authority passenger complaints) is an important requirement (PTA) provides government subsidies to cover the gap between component that calls for reporting obligations from expenditures and fare income. The entire fare intake thus remains with the transport operator; at the same time this cost and revenue the P/T contractors. This is the most crucial feature of risk lies with the transport operator. … It is in the PTA’s interest when PSC for Kazakh public transport services, as it holds more passengers and thus higher income from fares are generated; operators accountable, therewith significantly impacting because this reduces the additional costs covered by the PTA. on service quality. The authorized body may also request Gross cost contracts: The risk is shared by both the transport operator as well as the public transport authority. Through a public the establishment of user surveys and other forms of procurement process, the public transport authority chooses a passenger feedback (e.g. mystery shopping). If not transport operator who receives a fixed price for its services. Usually, foreseen in the contract, transport authorities may carry transport operators are keen on providing services with lowest those surveys out themselves to monitor performance possible prices. Fares are collected by the transport operator on behalf of the PTA, who also carries the risk for the income generated criteria. Such an approach would be truly novel to by fares. Therefore, the PTA has an interest in making the tariffs and the current situation in Kazakhstan and would require the transport demand by passengers as attractive as possible. In considerable adjustment from operators who – to date – order to keep higher quality standards contracts usually contain operate adhering primarily to technical standards. incentives/penalty systems. “Incentive Agreements”.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 47 • Stable maintenance of the P/T infrastructure operating company (“Avtobusny Park Kyzylorda” – (stops/ tracks/ and electrified lines). APK) and tendered all separately existing lines in one • Government access to the private operators’ lot. APK was the only potent partner to participate in financial and operational indicators as required to the tender. The other existing private bus operators be reported to the contracting authority according were unable to deliver viable offers. Thus, APK was to PSC terms and conditions. awarded the contract for all lines and concluded the PSC, which was enforced by the city Akimat for • High quality level of public transport service duration of 10 years. In order to ensure traffic on all provision for the passengers (fixed operational lines, the APK was forced to complete subcontract schedule/ GPS navigation using smart stops, high agreements with existing private bus operators. travel speed, comfortable vehicle, accessibility for Under the new PSC conditions the quality and safety disabled people, etc.). of public transport on APK’s own lines, operated by • On time technical maintenance and fleet repair CNG busses, is higher than previously observed. using original spare parts thereby increasing safety But the subcontracted private operators in practice in passenger transportation. have “operational freedom”, offering less services Currently Kazakhstan already partially analysed the and safety than actually required by PSC without any possibility to introduce the PSC in the public transport implications. sector in various cities. Such projects were mainly Currently there are two main problems for PSC financed by EBRD and include e.g.: Pavlodar transport implementation: strategy project (currently ongoing); Pavlodar tram project: CDP; Almaty Bus Sector Reform – City of 1) Too complicated legislation which requires a lot Almaty Urban Transport Regulatory Improvement; of changes due to difficulties in compliance with Kyzylorda CNG Bus Project – Regulatory Framework PSC payment methodology. The introduction of the Improvement Support. PSC process is inefficient due to a lengthy process of adapting relevant legislation and approving new The city of Kyzylorda serves as a practical example approaches in public transport management. for organizing a tender in P/T and concluding a PSC. In 2013 the city Akimat structured the existing bus 2) Reluctance of private operators towards using an lines, set a common tariff structure for all operators, integrated transport network applying one ticket for all organized the foundation of a municipally guided bus public transport modes in the city.

Figure 4-2: Exemplary Public Transport Financing Sources in Germany

Sources of National Regional EU Cities Customers financing government government

European Fund for Type Revenue from regional Develop- National budget Regional Budget City budget of budgets ticketing system ment EFRE

Law on financing Regional laws on Municipal Legal basis and services public transport law on school (LuFV) financing (ÖPNVG) transportation

Law on disentangling of Regional investment communal task programme for (EntflechtG) public transport

Law on regionalization fund

Rail way Allocation Regional/municipal/ communal transport association infrastructure company

School Public transport Operation and Management and Railway Use transportation infrastructure services Maintenance others services investments

48 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Due to the various funding sources and laws that 4.3 FINANCING SOURCES AND are to be applied, identifying the exact amount and SPENDING IN EUROPE percentage of funding per federal state let alone city emerges as a hugely complex task. For the means of The following figure shows the generalized overview this report, the following figure illustrates the overall of the various financing sources and funding streams proportion of funding and revenues: for public transport financing in Germany as well as the The figure below shows the compensation of transport respective regulatory and legal basis for each funding costs for school transport services in the federal state mechanism. Government funding is derived from the of Bavaria from 2012 to 2015. As mentioned before, three budgets (national, regional and county/municipal) this compensation is directly allocated to the counties/ in accordance with half a dozen laws and regulations. municipalities and its volume differs annual, since it highly These funding sources are mostly transferred to the depends on the development of birth rates, demography, regional/municipal or communal public transport urbanization levels, school enrolment rates, etc. associations. Compensation for school transportation is transferred directly to the municipality as these are in Figure 4-4: Compensation of School Transport charge of education and related issues. Services in Bavaria 61 Figure 4-3: Origin of Funding in Germany in 201260 115,3 Othe income Surrogates 112 21% 16% 110,4

Loss 116,5 Compensation 16%

Revenues 2012 2013 2014 2015 48% 60. Olive et al. 2001 61. ira da Silva Cruz

Table 4-1: Financing Scheme of Public Transportation in selected benchmark cities

Amsterdam Lyon Munich Barcelona financing of new infrastructure Financing of all Subsidies for 60% of TMB and FGC: cover 45% of projects in accordance with railway infrastructure investments into urban investments for maintenance the Transport Infrastructure investments within transport infrastructure and 33% of extensions Program their „Réseau Ferre de up to 60% subsidies for RENFE: covers 100% of Subsidy financing of bus France“ investments into vehicles investments vehicle acquisition on behalf of regional authority

National government Infrastructure financing and construction for railways Regional authority (ROA) As is shown in the case Rolling Stock: administers the subsidies for study: several national TMB: 28% for maintenance, interurban bus systems and and regional laws 35% for extensions their operation provide financing for FGC: 55% for maintenance, SYTRAL receives public transportation funding from the 67% for extensions this covers approx. 20% regional government, interurban busses: 55% for from regional budget through taxes as well line operation investments

Regional government as revenues Infrastructure: 2/3 of total the Rhône-Alp region investments Financing of small organizes its public Local governments Rolling Stock: transport funding infrastructure investments finance the missing TMB: 27% for maintenance, together with SYTRAL financing of investments for 20% for metro, bus and 33% for extensions tramway infrastructure Local all modes operated by the Interurban busses: 45% for GVBA municipality line operation investments administration/

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 49 Figure 4-5: SYTRAL revenues and expenses in 201063

Investments Miscellaneous Administrative Transport tax 29% 4% & 36% Miscellaneous 1%

Customers 24%

Loans Loans 21% 15% Operating Expenses Local authority 49% contribution 21%

To illustrate the complexity and diverging approaches in 1985: SYTRAL. Its managerial staff is composed to currently existent funding mechanisms the following of elected members from the Rhône County and 16 page highlights four sample cities from the international elected members from Lyon Urban Community. In benchmark and exemplifies their approaches to addition, in 2013 the association SMTR was founded financing and funding public transport. in order to regroup the surrounding counties; it is solely responsible for regional railway passenger services In terms of reviewing public transport organization and and school transportation. In France, public transport it financing, the example of France, Lyon was analyzed. funding is mainly derived through 1) local authority France is a highly centralized country; it is divided into contributions, 2) taxation, 3) loans and 4) revenues. 18 regions (three overseas), which are further divided into Départments. The national government provides In 1973, the Transport Tax (Versement Transport – the legal, regulatory and financial framework for public VT) was introduced by law, applying a special tax on transport organization and financing. companies. The money is directed towards the local public transport authorities (AOT) in order to co- According to the 1982 Transport Law (Law No. finance investments in public transport infrastructure 82-1153 LOTI), the Organizational Authorities of and services. Public Transportation (Autorités Organisatrices des Transports Urbains – AOT) are responsible for public The Financing Agency of Transport Infrastructure in transportation organization and implementation. France (L’Agence de financement des infrastructures They are required to 1) elaborate urban development de transport de France - AFITF) coordinates funding plans, 2) define the transport offer, 3) organize public for public transport infrastructure. The funding is transport financing, 4) promote the use of public derived from dividends from the motorways/highways. transportation, 5) marketing and 6) contracting and As the following figure shows, the Transport Tax procurement. contributed to SYTRAL’s financing in 2010 with 36%. The law allows the AOT to take different legal forms62; Local authorities subsidize public transportation currently the following ones are in place: services with 21% and revenues from customers • 35% Metropolitan areas (communautés account for 24% of financing for the transport services. d’agglomération) • 25% Municipality (Commune) 4.4 KEY RECOMMENDATIONS • 16% Inter-community association with one or more vocations (syndicat intercommunal à vocation Generally it must be noted that prior to implementing unique (SIVU) / syndicat intercommunal à vocation PSC successfully for public transport in Kazakhstan, multiple (SIVOM)) the following overarching requirements need to be met: • 11% Association of municipalities (Communauté de communes) a. A working legal system (e.g. a Law on Public • 7% Mixed association (Syndicat mixte) Transport) must be in place that allows the enforcement of such contracts. • 6% Urban conurbation (Communitauté urbaine) • 1% Association of new metropolitan areas (Syndicat d’agglomération nouvelle)

In Lyon, the transport association for the Rhône- 62. Source: VDV 20 Alpe region and the Lyon conurbation was founded 63. Source: VDV 2016

50 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN b. The authorizing body (e.g. PTA) and the private decision-making and policy-making processes operator(s) must be legally or at least organizationally at the local level; provide a new Public Transport separate entities. Law that delegates detailed policy-making and organizational issues towards regional and local c. The PTA must be willing to make its arrangements governments; both transparent and binding (e.g. by using long-term commitment in form of contractual duration). • decentralize and simplify the procurement and contracting process; the national government In order to establish a coordinated and integrated should prepare an overall framework, whilst sustainable public transport system, it is therefore allowing regional and local governments to own highly recommended to: detailed directives, regulations and guidelines; • recognise Public Service Contracts (PSC) as • ensure annual publication of future public transport the main contractual document in P/T legislation tendering processes and contracting64 between the regional and local Governments and • allow local governments to make decisions the transport operators; regarding • ensure national government award guidelines and an overall framework for tendering and contractual a. the type of contract, procedures by means of adequate national b. constructive or functional Terms of Reference for procurement law and best practice service tendering public transport services65; contracts), however, without a detailed regulatory • provide regional and local authorities as well as scheme. Detailed tendering procedures should fall PTA’s with public service contract templates for within the remit of local government; gross contract of public transport services. Also • allow the possibility to tender on the basis of allow these authorities to adapt the contracts, bidding “price” in addition to the tendering on the where deemed necessary; basis of quality and company requirement; • include in PCS’s templates a standardized • devise a diversified compensation/subsidy model: performance assessment/monitoring tool in order to motivate transport operators to good quality a. take a distance from compensating a specific transport services and have the legal framework route; this approach is more sensible if it refers to for control, including definition of incentives and school-related traffic, for instance. In this case, deterrents; school/student transportation can be compensated separately (this should be covered in a dedicated • define selection criteria based on a relationship school transportation law on regional/local level); between services and quality offered as well as prices. b. compensate specific passenger groups based on • Generally it must be noted that prior to implementing social criteria through fares; most commonly known PSC successfully for public transport in Kazakhstan, are reduced fares for elderly, disabled, children, the following overarching requirements need to be students and trainees and offer fares to attract and met: reward daily users, for instance through monthly/ yearly tickets for employees; a. A working legal system must be in place that allows the enforcement of such contracts c. make a qualified decision on whether to use net or gross contracts (please see Table 4 2: Advantages b. The authorizing body (e.g. PTA) and the private and disadvantages of net and gross P/T contracts for operator(s) must be legally or at least organizationally comparison); separate entities d. Include a price variation clause in contracts: it allows for an adaptation of the prices paid for long- term contracts and services provided over a long period of time (often based on a formula, for instance 64. Regulation (EC) 1370/2007 suggests in Clause 29 to advertise in the basis of the inflation rate); future activities in this regard at least one year in advance: “With a view to the award of public service contracts, with the exception of • additionally discuss options of fiscal equalization emergency measures and contracts relating to modest distances, schemes by which taxes from more prosperous the competent authorities should take the necessary measures to advertise, at least one year in advance, the fact that they intend regions/cities are relocated to subsidize public to award such contracts, so as to enable potential public service transport in economically weaker regions of operators to react.” Kazakhstan; 65. When preparing and implementing a procurement process • enable regional and local authorities to law-making for public transport services, the Terms of Reference need to be defined by the contracting authority. This can be done in two ways: 1) and to defining own transparent procurement Constructive ToR: the PTA/contracting authority provides a detailed guidelines and selection criteria; description of services offered, quality measures, timetable, etc. • refrain from the current rather technocratic 2) Functional ToR: the PTA only provides an overall framework (for instance number of routes), details are left to the transport operators approach of norms, policies and regulations for proposal. Source: https://www.vdv.de/130911-vergabe-im- at the national level and move on to flexible wettbewerb.pdfx?forced=true

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 51 c. The PTA must be willing to make its arrangements both transparent and binding (e.g. by using long-term commitment in form of contractual duration) In case of considering the implementation of net or gross contracts paid by vehicle km it is necessary to analysis in advance associated advantages as well as disadvantages:

Table 4-2: Advantages and disadvantages of net and gross P/T contracts

Advantages Disadvantages Gross cost contract: Reliable calculation for operator. Low entrepreneurial interests by Transport operator receives Low barriers for market entry. the transport operator to reach new passengers. pre-defined compensation be High legal certainty. vehicle-km High level of regulations. Enforcement of public interests (for example tariff). High monitoring efforts and combination with incentive/penalty systems Unproblematic integration in P/T associations. Revenue risk lies with the authority; budget reliability for public authorities is certainly in Competition neutrality. place, but operator has no direct incentive to ensure revenue collection Service improvements are initiated by the authority which may result in a lack of innovation. Net cost contract Transport operator has an entrepreneurial Transport operator carries the primary Transport operator receives interest in attracting more passengers and revenue risk the engrossed revenues and providing good quality services Lower influence of the transport authority the purchasing charge Enforcement of public interests over services provided Transport authority has an interest in More difficult integration into tariff providing good quality services as higher associations, but possible revenues reduce the gap that is financed by the authority Making the right decision at the procurement stage allows for achieving the best cost-benefit ration for transport services provided whilst reducing associated risks. The following individual aspects should be taken into account66:

Table 4-3: Assessment of individual aspects regarding the implementation of Procurement processes in public transportation

Vehicle Requirements Too detailed requirements provide no significant impact for the passenger Costs increase substantially when vehicles cannot be deployed flexibly Recommendation: lowest possible details Ordering & Cancellation Generally small level of flexibility High risks for more vehicles and drivers Recommendation: transparent regulation that covers possible additional costs Size of Lots Decide on whether to tender several lots at once Lot sizes should be friendly for various transport operator’s sizes Use synergies in more than one lot Recommendation: no limits on Lots, allow for general proposal Employee salaries Open competition leads to pressure on salaries Staff quality needs to be maintained Recommendation: ensure that social standards are kept

66. https://www.vdv.de/130911-vergabe-im-wettbewerb.pdfx?forced=true

52 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN FINANCING IN PUBLIC TRANSPORT 5

The Commission shall be established by Akimat and 5.1 CURRENT P/T FINANCING IN includes representatives from Maslykhat. The goal of KAZAKHSTAN the commission is to justify tariff calculations provided by the operator and clarify whether they are consistent Currently, public transportation in Kazakh cities is to the methodology approved by the Government. almost exclusively financed through compensations with the exception of subsidies for socially relevant If subsidies are required and confirmed by the routes as well as subsidized tickets for certain groups Commission, Maslykhat shall approve the subsidy and of citizens, such as the elderly or student. The contract proceed with local budget amendment accordingly. forms and the comparatively rigid tariff system allows Thereafter, Akimat shall approve a 3 year program operators and contracting authorities little leeway to with the amount of the calculated subsidies for socially enhance ticket-based revenues which – in turn – may important routes and, reach a subsidy agreement serve to further maintenance and renewal efforts and/ with the operator. The agreement shall include the or staff salaries. following: • Parties´ obligations; Tariffs shall cover only those expenditures of the operator, which are considered by the Government • Predicted passengers volumes for the period of of Kazakhstan to be directly linked to operating public the next 3 years, indicating the value for every year; transport services. For example, conditions of roads, • Subsidy value for 3 years indicating the value for maintenance, and installation of stops stations are to every year; be managed by Akimat, not by the operator. Fares • Approved tariff; and shall be calculated in accordance to the methodology of tariff calculation for public transport services with • Tariff calculated in accordance with the scheduled routes, approved by the order No. 614 of methodology approved by the Government of the Minister of Transport and Communication of the Kazakhstan. Republic of Kazakhstan, dated October 13,2011. The contract template/subsidy agreement does not In case Akimat applies a special tariff for socially include performance assessment tools and indicators, important routes and the tariff does not cover the which should motivate an operator to provide a good operator’s expenditures related to particular route, quality services. such a route is considered eligible for subsidies. In order to receive the subsidy the operator must The subsidy allocation procedure is outlined in the rules submit the report confirming the passenger numbers of subsidy allocation for remuneration of operator’s to the Akimat on a monthly basis. The report must be losses. The Rules are approved by the Order of very specific and include the following: Acting Minister of Investment and Development of the • Summary on tickets issued for reporting period; Republic of Kazakhstan #883 dated August 25, 2015 and (hereinafter – the Subsidy Allocation Rules). • Summary on revenues received from issued According to the Subsidy Allocation Rules, financial tickets. losses of the operator equates to the difference If all information is provided on time and justified by the between a route’s tariff calculated in accordance to report, Akimat shall approve the report and sign an act methodology approved by the Government and the of acceptance of the services. Akimat effects payment tariff specified for social reasons. once the act has been signed. The payment is made The subsidy program is developed and approved on a monthly basis in accordance with the amount by the Tariff Commission for a period of 3 years. specified by the subsidy program.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 53 Figure 5-1: Spread of stakeholder agreement with P/T financing statements

Public transportation should be privatized entirely.

Public transportation should be financed by both subsidies and revenues.

Public transport projects should be PPP financed. Public transportation needs to stay affordable for the average income user. There is the need for specific public transport financing policies in Kazakhstan and Kazakh cities. 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% I agree I don’t agree Unable to answer

The analysis of current financing and investing • remain affordable to the broad public; and practices in urban public transport in Kazakhstan (e.g. • build upon specific financing policies. cities of Astana, Almaty and Shymkent) shows that transport policies here require an investment strategy Disagreement was voiced with regards to rigid entire: involving different levels of government, the private • government subsidizing of services; and sector, investment banks and private operators. • revenue-based financing of services. Coupled with the current “flat fare” practice (with the The international best practice benchmark has shown exception of subsidies for socially important routes), that both financing and tariff policy in urban public financing public transport poses a great challenge in 67 transport are based on complex national and regional Kazakh cities today . processes and procedures of funding allocation and In the European benchmark cities public transport division of responsibilities (refer to Figure 5 2: General funds are usually channelled from central government sources, allocation and use of public transport to the local level where dedicated transport authorities financing). Generally funds are channeled from take on the responsibility for organizing and funding central government to the local level where dedicated the local public transport operators as well as setting transport authorities take on the responsibility for the relevant tariff system, reviewing this annual and organizing and funding the local public transport updating it (see Figure 3 26: Higher single fares can operators as well as setting the relevant tariff system. be found in cities with higher GDP/capita rates on Thereby the benchmark results showed that European page 46). cities closely align their fares with the city’s GDP. For Kazakh cities with available data for both GDP/capita Stakeholder interview results suggest that the and single fare price a greater disparity is apparent. expert opinion with regards to public transport financing deems a mixed financing procedure (both governmental subsidies and operational revenue) with the appropriate policy framework most suitable for financing public transport services in Kazakhstan. The interviews also sought to explore the current opinions on how urban public transport in Kazakh cities should be financed in future. Three statements received agreement ratings from all participants, strengthening the view that public transport should: • receive more government subsidies;

• finance itself by means of a mix of subsidies and 67. OECD Urban Policy Reviews OECD Urban Policy Reviews: revenue; Kazakhstan (2017)

54 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Table 5-1: Comparison of funding/financing and tendering procedures in benchmarking and Kazakhstan cities

Current situation in Kazakh Cities Current situation in Benchmark Cities Pursuant to Article 19 of the Law 476-II, the fare/tariff shall Public transport authorities devise tariff structure be specified by Akimat (local implementing authority) and and adhere to time- and distance-based criteria approved by Maslykhat (local legislative authority). Zones are usually either ring-zones or honey-comb Single fare is set as a flat rate (no differentiation between zones time of travel and distance covered) Tariffs allow intermodality (use of different modes by On 5 May 2017 the Government of Kazakhstan amended different operators within transport authority area; the Law specifying a modified approach of calculation for a revenue reallocation is undertaken to reimburse all differentiated tariff (only for Almaty and Astana) to consider: P/T operators in accordance to their service levels/ › type of route; contractual agreement › type of travel ticket; Tariffs are usually subject to authorization. This is set in national P/T law (e.g. in Germany PBefG68 › type of payment; and Concessions are available for school-children, › distance of the route or number of stops. students, unemployed and elderly The rules are approved by the Order of Acting Minister Subsidies are paid out in accordance to various of Investment and Development of the Republic of criteria and are (a) either tied to the transport Kazakhstan #883 dated August 25, 2015 (hereinafter – the Tariff setting and ticket pricing mechanisms services on offer (i.e. subsidies for economically Subsidy Allocation Rules). weaker areas) or (b) indirectly to the passenger (i.e. Operators must report number of issued tickets and concessionary tickets). revenue generated from these in order to receive subsidies. Paper tickets for single fares dominate. Benchmark cities display everything from paying The payment procedure is outlined in the Order of Acting in cash when boarding to ticket machines and Minister of Investment and Development of the Republic electronic ticketing. of Kazakhstan #349 dated March 26, 2015 “The rules Payment procedures are laid out in respective of transportation of passengers and luggage with motor national law relating to public transport services. vehicles.” This also specifies payment procedures for Onay (Онай) Ticket payment unified transport cards as a form of e-ticketing in Almaty and Astraplat in Astana, the only two Kazakh cities currently with the option for electronic ticketing. Governed by national level regulations Urban public transport is often tendered out by In accordance to the Law №476-II, regular public transport transport authorities representing the interest of the services for passengers and luggage are provided by private respective local authority. operators, which have to be declared as winner of the According to EU Regulation 1370/2007 the tendering tender procedure. After successfully completed tendering, and financing of P/T services must be handled the a winner shall inter into agreement on public transport same in all European countries, including public services with the municipal authority and, thereafter, receive invitations to tender for which it is not uncommon for the authorizing certificate. internal planning will start 2-3 years prior to contract Bid evaluation parameters are set out by the Order № 349 commencement.

Procurement procedures of the Acting Minister for Investment and Development of the Scope and requirement for tendered services are Republic of Kazakhstan, dated March 26, 2015 (hereinafter derived from local transport plans and updating of the - the Rules of Transportation Services). current service offer. Akimat initiates and organizes the tendering process For local public transport either transport authority based on the “Resolution of the Government of the or local authority (if no dedicated transport authority Republic of Kazakhstan No. 767 of July 2, 2011 On is in place). approval of the Rules for the transport of passengers and luggage by road”, Chapter 5 “Organization and conduct of competitions” («Постановление Правительства Ре- спублики Казахстан от 2 июля 2011 года № 767 Об утверждении Правил перевозок пассажиров и багажа автомобильным транспортом», гл. 5. «Организация и проведение Конкурсов») Responsibility of tendering Bid evaluation and contract award procedures are also conducted by Akimat.

68. Personenbeförderungsgesetz: Transport Persons Act

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 55 3 years or more, according to Article 23 of the Law №476- Variable, depending on mode of transport; for local II, a contract on regular public transportation services for bus concessions usually somewhere between 5-8 passengers and luggage. years. period contract Validity of

Generally Akimats signal willingness to combine municipal Generally regarded as an important tool to attract funds and private money (stakeholder workshop result) additional financial resources for high priority Kazakhstan has a law on Public-Private Partnerships investments (such as public transport). (signed by President in 2015) to create a common Institutional diversity in the transport sector is legal framework to regulate PPPs in a standardized and considerable, with countries adopting different streamlined manner, thus, paving the way for investors69. approaches with respect to user charges and 72 Two agencies share responsibilities for PPPs in Kazakhstan: ownership structures . the Kazakhstan Public-Private Partnership Center (PPP UK has the longest and most substantial experience Center) and the PPP Advisory Center (PPPAC)70. in PPP agreements.

PPP approaches Almaty LRT is the first major public-private partnership (PPP) transaction in urban transport to be launched in Kazakhstan71. Investment Forums in Almaty and Astana have been set up to handle PPP.

that there is no one preferred or “correct” way to 5.2 MAIN FINDINGS REGARDING organize public transport financing – except to differ FUNDING FROM INTERNATIONAL by transport mode and – in the case of subsidies – by region as well as by passenger group (e.g. school BENCHMARK ANALYSIS children, elderly, disabled). Public transport operation and capital investment costs have steadily grown in the last decade due to 5.2.1 Funding sources increased demand and quality expectations from customers, as well as growing cost of production In general, funding from local or regional governments factors (mainly labour and energy). Local or regional for public transport operation comes from national, governments usually mitigate most of the gap regional and municipal budgets. In addition, between commercial revenue and operating costs. In governmental loans are often applied. The figure developed economies, this represents about 50% of below shows the general financing sources, allocation public transport operating costs (UITP 2013). The comparative analysis of a few benchmark cities 69. Source: Law on Public-Private Partnerships signed in Kazakhstan (2015) regarding public transport financing shows that the 70. Source: PPP Knowledge Lab Kazahkstan (2016) need for subsidizing public transport systems in 71. Source: Kazakhstan Public Private Partnership Center European cities has been identified early on and that 72. Source: Medda et al (2013) Public private partnerships in financing mechanisms and funding streams to reflect transportation: Some insights from the European experience, this have been refined over time. Also it emerges IATSS Research

Figure 5-2: General sources, allocation and use of public transport financing

Financing Supranational National Regional Passenger/ Municipality Taxation Loans sources institutions government government customers

Financial Regional Municipal Transport Regional Municipal Infrastructure ... allocations administration administration association association public service company regulations,etc. Defined by politic,

School Financing Maintenance Management PT services transport Investments Loan payoff ... use and operation and others service

56 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN und use of funding for public transport systems in planned. Heavy rail infrastructure and vehicles are metropolitan areas. Usually financing sources besides substantially more expensive than tramways or bus revenues from passengers encompass various systems. Analysis and experience show that public funding options from national, regional and municipal transport systems are most likely to run loss-making budgets. In addition, governmental loans are often operations. The high infrastructure, maintenance and applied. In the European Union, the European Fund rolling stock costs, the required reliability of services for Regional Development (EFRE) can for example as well as the consideration of socially acceptable tariff be applied to fund special projects concerning CO2 and fare structures decrease chances for profitability reductions and mobility. in public transportation. This results in a strong need for co-financing and subsidizing through national, Thus, the following funding forms (or a combination regional and local governments. thereof) can be implemented: The analysis of financing concepts in selected 1) Revenue from passengers: benchmark cities shows that heavy rail infrastructure • This refers to the income generated from tickets and rolling stock are very often financed and organized sold to passengers. It can refer to commercial through the national governments. This is performed fares from fares obtained by one or more transport either directly through an authority subordinate to the operators. This is especially the case when no transport ministry or through a fully government owned public transport authority exists. In this case, public limited liability company. Investments into local public transport companies / operators solely rely on transport systems through busses or tramways are the revenue from passengers. According to our often co-financed and subsidized by both national and understanding, this is currently the case in Kazakh regional governments. These transfer the funding to cities regarding bus transportation. the local public transport authority and the respective 2) Funding from government budgets: municipalities. • This includes fixed funding through national, Depending on the transport mode, funding is regional, county/municipal household budgets needed for the following key elements: that have been put in place through laws and Infrastructure regulations. • Tracks • When several regions or municipalities are funded by the national government it is usually necessary to • Stations & Stops define an allocation formula in order to allocate the • Tunneling (if Metro) funds according to demographic size and forecast • Maintenance development (net migration, age structure), traffic demand (measured in passenger-kilometers), Rolling Stock infrastructure and operating costs, etc. • Vehicles 3) Taxation: • Workshop, Depot & Maintenance Another source of funding includes the use of taxes, Operations either directly for transportation or a tax applied levied • Operating Control Center for something entirely different and then relocated to • Staff and Personnel public transportation. Two examples: • Tariff and Ticketing • In France the Transportation Tax (Versement • Marketing Transport – VT) is applied to employers and it funds between 30% to 40% of public transport services. • Financing, Procurement & Contracting • In Amsterdam (the Netherlands) the parking The following table shows a compilation of the revenues are partially used to co-finance the proportion of funding from the three levels of Tramway “IJtram”, accounting for 1% of its authorities: national, regional as well as local financing73. authorities in four selected benchmark cities. As is shown in Figure 5-2 funds from various sources are transferred to respective stakeholders responsible for allocation of funds and public transport organization and implementation. This can be the regional or local administration or association as well as Public Transport Authorities, who are granted the funds and are responsible for financing their public transport services and related tasks. Public transport financing is characterized by capital intensive financing. The exact amount of financing depends on the modes of transportation in use/ 73. Source: Ubbels et al. 2001

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 57 Table 5-2: Financing bodies and proportional funding in selected benchmark cities

Proportion of Financing (2001) Central Regional Local Authorities Total Authorities Authorities Metro, Tramway, Bus, Amsterdam 100 % / / 100 % Trolleybus Metro, Bus, Trolleybus 6 % 47 % 47 % 100 % Lyon Railways 100 % / 100 % Metro, Tramway, Bus, n/a n/a n/a n/a Trolleybus Munich Railways 100 % / 100 % Interurban Busses / / 100 % 100 % TMB: Metro, Bus 45 % 28 % 27 % 100 % Barcelona FGC 55 % / 100 % RENFE / / 100 %

5.2.2 Innovative approaches to P/T in prices impaired the government budget and jeopardized public sector funding. Due to the lack financing of government budget Kazakhstan´s government has been actively seeking ways to attract private Apart from the highlighted “conventional” funding sector investment. The key motivation considering categories such as ticket revenue, government Public-Private Partnerships (PPP) was the possibility compensation, loans and transportation tax a range of bringing in new sources of funding public of alternative means of public transport funding must infrastructure and service needs, attracting private be mentioned for potential discussion regarding their sector investment to the public sector to fill the niche suitability. These can include the following: in “Kazakhstan 2050” Strategy, launched in 2015 by Kazakhstan’s Deputy Minister for Investments and Table 5-3: Further revenue options for P/T Development. US$20 bn. shall be invested in all types of transport infrastructure by 2020; its development is Funding mode Example the primary goal both for Kazakhstan´s government Indirect funding via private modes: Fuel tax and the multilateral financial organizations such as by using the “internalization Parking fees World Bank, European Bank for Reconstruction and of external costs”-principle, Congestion charging Development (EBRD) and the Asian Development make use of income derived Bank (ADB). Kazakhstan aims to attract investment from taxation of other sources/ into the economy and is emphasizing the development transport modes of PPPs (Chikanayev 2015). Tax exemptions for public VAT PPP solutions have been implemented across a transport services Fuel discount wide range of sectors (including urban passenger Use of commercial sources to Advertising transport such as Light rail, tram and metro transit generate additional income Development of systems as well as bus rapid transit) over the last public land/real estate couple of decades and address cost-effectiveness, in or near stations technological innovations, increased efficiency and service quality. PPPs are viewed as a special type of cooperation between the public and the private 5.2.3 Possibility of Private Sector sector to share financial risks in the areas of social and infrastructure development, and attracting private Participation in Kazakhstan to close the investment. They have to balance the provision of public services against a bankable technical and funding gap economic solution. Nevertheless it must be noted that Since 1991 Kazakhstan´s economy relies on the urban transport systems differ from many other public income from natural resources such as oil, gas and service models in that full cost recovery is not often uranium, and thus is very dependent on oil prices met; the revenue income is often insufficient to fund and commodity exports. Kazakhstan faced a deep capital and operational efforts. recession due to the collapse of oil prices in July 2008 The main PPP model in Kazakhstan is being based on during the financial crisis, damaging its commodity the Build-Operate-Transfer (BOT) structure, wherein export-dependent economy. The significant changes a private entity receives a concession from the private

58 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN or public sector to finance, design, construct, own, The Law on PPPs (adopted in 2015) enabled the and operates a facility stated in the concession execution of the now specifically legally recognized contract. PPP projects throughout Kazakhstan have concession agreements with acknowledge risk-sharing been largely carried out in transportation e.g. railway as a key principle to design and manage large-scale and airports (however not with a focus on urban public PPP projects. The law provided other forms of PPP such transportation), and energy. as BOT (Build-Operate-Transfer), BOOT (Build-Own- Operate-Transfer) and DBFO (Design-Build-Finance- The light rail line in Astana will be the first major PPP Operate). Where the BOT model is applied, the private transaction in Kazakhstan’s urban transport sector party is responsible for construction (typically Greenfield) and its development should be followed with some and operations while ownership is retained by the interest as a precedent-setting project. public agency. In the case of BOOT the private party Between 1993 and 2006 no specific law on retains ownership for the duration of the concession concessions had been passed, several concession and has the responsibility for construction, operation projects occurred during that period relying on and maintenance. With a DBFO the responsibility general provisions of the Civil Code of Kazakhstan, of land provision lies with the public entity and the namely the execution of the concession agreement responsibility of designing, building, financing and on construction and operation of: operating the entire project to the private party. At the • the railway “Shar–Ust-Kamenogorsk Station” termination of the contract, the private entity will transfer (2005) and the operational control of the infrastructure system back to the government entity. Finally, the Law on PPPs is • the inter-regional power line “North Kazakhstan – expected to ease the qualification conditions for the Aktobe Region”. bidder. Instead of the current law’s requirement for the Now two different laws regulate PPP projects in concessionaire having their equity of 20% concession Kazakhstan. PPPs are governed by the Law of the value, this will be 10%, or the concessionaire needs to Republic of Kazakhstan on Concessions No.167- obtain a bank’s guarantee for an equivalent of the 10% III 3PK (the Law “On Concessions”) (adopted 7 concession value (Chikanayev 2015). July 2006), which provided project types like BOT, Along with the development of a regulatory framework, resulting in a number of projects being planned on two agencies to assist policies and to build competencies that basis such as have then been established for PPP in Kazakhstan: 1) • Passenger Terminal of International Airport in Kazakhstan Public-Private Partnership Centre (PPP Aktau City (2007), Centre) and 2) the PPP Advisory Centre (PPPAC). • Yeraliyevo-Kuryk railway line (2007), The PPP Centre was established in 2008 to support • Electrification of the Makat-Kandyagash railway concession projects through knowledge transfer in line (2007), the review of processes, providing advisory services • Execution of the concession agreements on Gas and creating a framework in line with international best Turbine Plant in Kandyagash City of Aktobe Oblast practice. It operates under the Ministry of Economic (2008) and Development and Trade. The PPP Advisory Centre • Railway Line Korgas-Zhetygen (2008). was established in 2014 to support national and regional infrastructure development in Kazakhstan by In order to continue the implementation of new providing advisory services on infrastructure project concession-based infrastructure projects the development, including those implemented as PPP government amended the existing Concession Law (Kazakhstan PPP Center 2016). and specified its commitment to compensate the concessionaire if the national currency devalues by 74. Source: Kazakhstan Public-Private Partnership centre (2016) 5% and more.

Table 5-4: Basic data on selected PPP projects in Kazakhstan74

Passenger terminal Shar–Ust-Kameno- North Kazakhstan– Korgas-Zhetygen of the airport in Aktau gorsk railway Aktobe region power line Railway Line City Sector Transport Transport Energy Transport Term of concession 2005-2022 2005-2022 2008-2022 2008-2036 Concessioner Doszhan Temir Zholy Batys transit JSC ATM Grup Uluslararası ENCR Logistics plc JSC Havalimanı Yapım Yatırım ve İşletme Ltd. Total investment US$ 161 mln. US$ 30 mln. US$ 80 mln. US$ 617 mln. Project scope 151 km operational 487 km length of 450 passengers / 299 km operational operational length length transmission line hours terminal capacity length

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 59 A number of concessional projects, which had been path with “Kazakhstan 2050” Strategy. Encouragingly PPP implemented before or around the PPP Center, was project structuring has increasingly gained importance in established, are summarized below. modern political and economic development agenda in Kazakhstan. However no PPP project in urban transport Some of them did not fulfil the expectation, partly has been successfully implemented yet. caused by poor project structuring and a lack of proper balance of the risk sharing between the state and the Kazakhstan tries to attract private sector investment to private investor. Although the construction of the Shar– compensate the funding gap with government funding. Ust-Kamenogorsk line has initiated the PPP process The Governments might be increasingly provided and enabled to implement the PPP mechanism into State guarantees to incentivize the private sector to practice, it turned out that neither the state, nor the participate in PPP projects. State Guarantees are private sector, were adequately prepared to operate defined as agreements under which the Government under the principle of partnership. Furthermore freight agrees to take some or all of the downside risks of a volumes turned out lower than expected. PPP project as a secondary obligation. If a specified event occurs during the project phase the Government Several of the companies expected to use the North is legally bound to take on an obligation which has been Kazakhstan–Aktobe power line were out of action or contractually defined. In practice, State Guarantees operating below full capacity. Another concession are used when debt providers (e.g. commercial banks, project with three years of project preparation to take to financial institutions, and private equity funds) are market as a PPP, the Almaty Ring Road PPP (BAKAD), a unwilling to provide financing to a PPP company due to project of substantial social and economic significance credit risk and potential loan losses. as a link to a transnational highway connecting Western China with Western Europe, has not yet been awarded due to the rectification of the risk structure for the 5.2.4.2 Institutional Level private operator with the result that the government of The governance structure must ensure that both the Kazakhstan agreed to take over the traffic/revenue risk. public and the private party are covered against risks. A good example is the construction of the new The state should improve institutional governance and Korgas-Zhetygen Railway line, completed in 2012. prohibit the private partner from acting on his own in It is a project of significant strategic importance, order to avoid unexpected payments. Kazakhstan offering another connection with China through has legislation and appropriate experience using of railway and reduces distance by 550km which shows concession type of PPP agreement to implement a positive impact on the environment. China-Kazakh projects in transport sector. transport corridors play a significant role in bilateral Further, if the government urges foreign investors to trade between the states. The new line has served to join new PPP projects, measures should be taken to double the capacity at the Kazakh-China border and stabilize the applicable PPP legislative framework. has provided employment opportunities for the local Currently the procedure to attract the investors into people (Mouraviev, Kakabadse 2017). the significant projects is too complicated. The Law on Concessions is not comprehensive; gaps deter 5.2.4 Challenges for Public Private private sector investment in PPP. The PPP Center has enabled to set up the accumulated Partnerships (PPP) in Kazakhstan experience gained by Kazakhstan in implementing concession-based projects. It has built certain Generally for PPP projects more sophisticated expertise and institutional knowledge regarding PPP institutional governance and public intervention is development. To standar¬dize the process and to required, because most complex infrastructure projects improve preparation procedures of PPP projects, and urban transport systems suffer from a lack of feasibility standard contracts and standard PPP models for certain since they do not cover full capital costs and only few industries could be developed and implemented. cover operating costs. Also, revenues are insufficient to cover debt service, so governmental support is needed To strengthen its institutional governance and to make to close the gap between costs and revenues. This it flexible in terms of decision-making and approval inevitable situation, and P/T is a loss-making business the PPP Center and the PPP Advisory Center might be in many countries with maybe the very odd exception reorganized into one autonomous unit. As a next step such as e.g. Hong Kong, Tokyo and Osaka, reduces the it might optimize its decision-making and approval attractiveness to any third party investments. processes and foster cooperation with private stakeholders and players by conducting working 5.2.4.1 Political level groups, educational campaigns, and round tables. Kazakhstan has gained certain experience related to implementing concession infrastructure projects, not only 5.2.4.3 Financing level in terms of concession projects but is now in the process In order to balance risk sharing with the private sector of expanding into a wider range of PPP forms and on the and therefore enhanced feasibility and increased

60 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN probability of success of a PPP project, certain financing development program to be implemented by the end options may need to be bundled with the PPP option of 2017 and will provide school transportation with preferred for the facility. The bundled financing options tariffs calculated using a common methodology. may be in the form of Grant/Viability Gap Funding for Introducing a school bus system in cities other than capital or for operational expenditure or both. Astana should become a central implementation. The Such financing and payment options may be bundled current situation suggests that there are some cities with PPP options either individually or together to which already provide school bus services. However, reduce the project’s risk profile thereby improving the this is organized by the private operators who sign the attractiveness of the facilities to the private sector. The contract directly with the clients (families), based on optimal financing and payment mechanism result in the: one special order or on a monthly basis (regularly). • Reduction of risks for private partners; Currently there are several private bus companies who offer school transport service, such as “Happy • Provision of value-for-money to the Government of Bus” (in Astana and Akmola region), Astana express Kazakhstan; and other small companies who offer rental busses • Competitive determination of financing for pupils transportation (for example for exhibition, requirements. camping trips, etc.). The companies devise/plan the school routes, 5.2.4.4 Key recommendations for successful PPP operational schedule and set the payment rates, The following recommendations are essential to any PPP which are usually high (for example in Astana- 20,000- procedure including urban public transport systems. 25,000 KZT monthly)76. In large cities such as Astana • Bundle certain financing options, e.g. in form of and Almaty some of the private schools have their own Grant/Viability Gap Funding for capital expenditure buses and pick up pupils from stops close to home. (CAPEX) or for operational expenditure (OPEX) or An extract from the rules of the passengers and luggage both to move attractiveness of the facilities to the transportation by motorized transport regulates the private sector. general conditions for the rides for both regular and • Establish detailed risk assessment process, PPP seasonal pupil transportation. There is, however, no development risks and responsibilities should be separate regulation dedicated to this type of transport. adequately split between the government and In terms of identifying existing bus services and daily private parties. In public transport or other risky pupils flows for Astana shows that there are 94 schools, PPP infrastructure projects full cost recovery is not which have approximately 117’000 pupils in total, often met; it requires fares to yield enough revenue where 34% of these pupils travel to school by private to recover all the costs. Therefore it is important to car and 11.3 % use public buses77. This situation compensate/subsidize the revenues, for instance impacts on the high traffic level during drop-off and by a Minimum Revenue Guarantee presents to pick-up times in the morning and evening. Following reduce the traffic/revenue risk. the indications of 2017, the number of pupils who • Ensure consultations with potential investors, travel to the school by private car decreased to 26%. development partners and other financial institutions to arrive at a final choice on financing Less urbanized Akimats (such as Taraz) with fewer and payment options and a compe¬titive schools) can organize and finance free transportation determination of financing requirements. to the nearest school and back. This is a measure of state support for children living in rural areas (Status 2016: the Republic of Kazakhstan has 5.2.5 Introducing school bus system in a 1’591 settlements with no schools and provides transportation for 26’555 children carried by 1’457 long prospective in Kazakhstan buses). In this case school transportation is regulated by the each respective settlement’s regulations. To reduce significant inner-city traffic levels in Astana for example the Government, within the framework of an integrated development program, reviewed the 5.2.6 School transportation in possibility to implement bus school services and in 2017 the plan is to introduce a new system of school international best practice transport that will also raise safety aspects and reduce In Germany students/ pupils travel to school by special the number of private cars in the morning/ evening75. scheduled bus routes. The operational time is set to There are prospective plans to implement a special suit school hours. These buses do not operate at the route network in the city. The first step of the program should include purchasing 45 new school buses. As a priority, the transport should serve the pupils from 75. Article: Interview for introducing new school transport service a suburban area where the schools are overcrowded in Astana, 2017 due to their scarcity. “School Bus” (LLP “Astana 76. Interview, abctv.kz in «Astana-LRT». LRT”) is the project which is the part of integrated 77. Article: Interview about school buses situation in Astana, 2016.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 61 weekends and during holidays. The local authorities 5.2.7 Recommendations for school bus subsidize the routes, however, the parents are required to pay a difference of the full cost of a season ticket. system in Kazakhstan Due to the developed bicycle infrastructure many In a parallel a reliable monitoring system for the school pupils also use their own bicycle to travel to school and buses should be introduced (including new integrated may also transport them on local/regional trains. smart solutions): In the United Kingdom pupils travel by busses provided • Online follow- up of the bus location. by scheduled local public transport bus services. The • Speed and route control. dedicated services are usually contracted to local bus companies. There is, for example, “My Bus”, a • Punctuality checks for school arrival times. group of bus contractors using buses solely for school • Possibility to control the safety in the vehicle. transport. Buses are fitted with seatbelts, and full- • Driver contact option for exceptional circumstances time drivers are assigned to each route. Children with (though GPS system or “SOS”). special needs or disabilities are often transported in • Control the fuel costs. purpose-built minibuses. In addition, the running of “Green” school buses could In inner-city urban areas most students are transported positively influence the environmental impact of urban on mass-transit or intercity buses along with minibuses transportation. Although diesel fuel is most commonly in support. To distinguish themselves from other used in large school buses (and even in many smaller buses, the appropriate transport is required to have ones), alternatives such as LPG/propane and CNG a destination sign as «School Bus» with a yellow have been developed as viable alternatives. Electric background. When pupils board and alight school busses can be considered too, given dedicated buses should warn the road traffic using their four-way school buses service set routes at set times, options hazard lights. for re-charging are plentiful.

Table 5-5: Possible actions for a school transportation system

Possibilities/ Actions Steps to be done 1. Introducing special 1. Identify highly frequented school routes school buses in the 2. Analyse student numbers (short-, medium and long-term) city and rural area 3. Calculate number of expected students to be transported along each route in mornings and afternoons 4. Cooperate with schools and parents regarding pick-up times and student passes 5. Cooperate with bus operators on routes and times 6. Cooperate with parents and bus operators on tickets, fares and student passes 2. Introducing 1. Identify highly frequented school routes special school routes 2. Analyse student numbers (short-, medium and long-term) operated by city public 3. Calculate number of expected students to be transported along each route in mornings and afternoons transport 4. Cooperate with schools and parents regarding pick-up times and student passes 5. Cooperate with bus operators on routes and times 6. Cooperate with parents and bus operators on tickets, fares and student passes 3. Introducing special 1. Assess the possible need for disabled school transportation school transportation 2. Cooperate with respective schools, parents and transport operators for children and/or 3. Analyze possible introduction of special school transport services adults with disabilities 4. Calculate costs 4. Extending student 1. Evaluate current use of student passes for public transportation passes for public 2. Analyze and compare costs for possible extension to other transport services, such as special transportation and school transport services school bus systems 5. Cooperation with 1. Assess and analyze current passenger demand at school-related hours (mornings and public transport afternoons) along routes in close cooperation with transport operators operators on school- 2. Identify bottlenecks and high peak hours related routes to 3. Carry out traffic simulation with higher number of bus coaches at peak hours possibly increase public transport offer 4. Cost calculation and comparison and frequency 5. Base additional subsidies on additional costs for additional traffic in order to meet peak hour passenger traffic demand

62 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN LEGAL ASPECTS OF PUBLIC TRANSPORT ORGANIZATION AND OPERATION 6

• Sanitary Rules “Sanitary-Epidemiological 6.1 LEGAL DATA PROVISION requirements for vehicles, which shall be utilized The analysed list of key Laws and regulations for for passengers and luggage transportation”. Kazakhstan’s public transport sector includes the Approved by the Order No240 of the Minister of following: National Economy, dated March 20, 2015. • The Law # 156-XIII dated September 21, 1994 “On • The rules of technical operations of vehicles. transport in the Republic of Kazakhstan” (amended Approved by the Order No 547 of the Minister of on 13 June 2017); and investment and development of the Republic of • The Law #476-II dated July 4, 2003 “On motor Kazakhstan dated April 30, 2015 vehicles” (amended on 5 May 2017). • The Standard ST RK No. 2273-2012 “Passenger Additionally regulations covering government decrees transportation services with regular and not regular and ministerial orders issued for describing more routes. General Technical Conditions”. specific information and detailed guidelines for P/T • GOST 30594-97/GOST P51004-96 “Transport organization and controlling measures were included, services. Passenger transportation. these beeing: • Quality indexes nomenclature.” • The Order of Acting Minister of Investment and • GOST 27815-88/ Rules of UNECE #36 “Buses. Development of the Republic of Kazakhstan #349 General Safety requirements” dated March 26, 2015 “The rules of transportation • ST RK GOST P51709-2004 “Motor vehicles. of passengers and luggage with motor vehicles.” Technical conditions’ requirements related to • The Order of the Minister of Transport and traffic safety. Methods of inspection”. Communication of the Republic of Kazakhstan • GOST 17.2.2.03-87 “Environment protection. #614 dated October 13, 2011 “On approval Atmosphere. Rates and methods of measuring the tariff calculation methodology for public carbon monoxide and hydrocarbons content in transportation services with regular routes”. exhaust gases of petrol-engine vehicles. Safety • The Order of Acting Minister of Investment and requirements”. Development of the Republic of Kazakhstan #883 dated August 25, 2015 “On approval the • GOST 17.2.2.01-84 “Environment protection. rules of subsidy allocation for remuneration of Atmosphere. Diesel for vehicles. Smoking at the operator’s losses with unprofitable routes, which exhaust. Norms and methods of measure.” are considered as socially-important”. The analysed key documents for fund allocation • The Order of Acting Minister of Investment and procedures and subsidy approval process include: Development of the Republic of Kazakhstan #348 • Methodology of tariff calculation for public dated March 26, 2015 “On approval the template transport services with regular routes. Approved of an agreement for Public Transport Services”. by the order No. 614 of Minister of Transport and The analysed list of relevant key documents existing for Communication of the Republic of Kazakhstan, health and safety standards in public transport sector dated October 13, 2011. and considered important includes the following: • The rules of subsidy allocation for remuneration of • Sanitary Rules “Sanitary-Epidemiological operator’s losses with unprofitable routes, which requirements for maintenance facilities for vehicles are considered socially important. Approved by and passengers”. Approved by the order No156 of the Order of Acting Minister of Investment and the Minister of National Economy, dated February Development of the Republic of Kazakhstan #883 27, 2015. dated August 25, 2015.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 63 6.2 OVERVIEW OF REGULATIONS 6.2.2 Overview of Plans and Strategies of AND POLICY IN KAZAKHSTAN the Government of Kazakhstan In terms of analysing the future plans and strategy the following relevant documents were also considered: 6.2.1 Legal Framework • Draft regulation on differentiated tariff; Kazakhstan has number of laws and regulations in the • Draft of the calculation of differentiated tariff for public transport sector which guide and outline the Almaty city; required procedures. • Concept proposals on the development of legislation for the Ministry of Investments and The National Government applies a centralized Development; and approach for governing and law-making procedures, • Legislative proposals on paid parking and public providing not only the general strategic approach transport. to transport-related issues but also by specifying certain technical and safety standards. It thereby The recommendations in the documents have also demonstrates a political intent for prohibiting reasonable justification and should be considered by the Government fur future public transport the cities’ administration to establish their own rules improvement efforts, such as: and procedures considering specific requirements and conditions. State-level norms were developed in a) Determination of the procedure of the differentiated tariff; a top-down approach to be applicable for the entire country. b) Preparing a different approach for developing and managing the template of public transport services Legal analysis shows that the Kazakh regulatory system agreement; in the area of public transport is both comprehensive c) Creating a dedicated organization to deal with and very strict. The current legal framework for public public transport organization procedures; transport has a number of shortcomings, where d) Increasing responsibility for mitigating the violation overregulation though national legislation hampers of the law on transport. the development of public transport. To strengthen the public transport organization as well as set a legislative The recommendations on the differentiated tariff have relationship between the transport authority and P/T been reflected in the Law #59-VI dated May 5, 2017 “On amendments to transport related regulations operator (s) and to ensure quality service delivery a of the Republic of Kazakhstan”. The Government of new law in urban public transport is required. Kazakhstan should specify the details on how to use the Encouragingly, however, several positive legislative differentiated tariff calculation procedure, which will help developments have occurred to date: local authorities to proceed with the correct calculation. • Founded State Commission for the “Development of Democratic Reforms” (2006); 6.3 OVERVIEW OF REGULATORY • Administrative reforms set on agenda of the national strategy “Kazakhstan 2030”; and PROCEDURES IN EUROPE • New constitution as of March 2017 transferring The regulations and policies in Europe retain the top- powers from the President to the Parliament. down approach as they are governed by the state laws

Figure 6-1: Abstract visualization of policies per administrative level

Planning of PT Laws and regulations Urban planning Sustainability

State Top-down

Regional

Municipal Bottom-up

64 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN and directives at the national level and then translated • The VRUITS project: Intelligent Transport Solutions into action plans, strategies or agendas at regional or (ITS) for Vulnerable Road Users (VRU) local levels. • Sustainable Urban Logistics Plan (SULP) and In Europe, the EU embodies the supranational level and Sustainable Urban Mobility Plan (SUMP): issues legislation regarding Public transportation, such as: Guidelines provided by the European Commission to help cities, regions and countries to prepare • EU Regulation 1370/2007 defines and regulates sustainable urban logistics and mobility plans. the procurement of public transport services; every EU member state is obliged to align their national The municipal level is usually required to implement transport legislation with this regulation respective concrete plans for the policies handed to them. • EU Regulation 2001/14/EG requires the Regarding development plans, public transport plans, implementation of a governmental, independent urban and sustainability planning documents the degree control authority to ensure access to railway of involvement of each administrative level is often bottom- infrastructure; and up rather than top-down. The national government might provide an overall transport strategy, whilst the regions • EU Regulation 91/440/EWG primarily regulates and municipalities prepare more detailed documents and competition in the railway sector and requires EU carry the responsibility to implement them. member states to implement a respective national legislation The national government provides the legal framework • EU regulations require legal implementation by in transport-related issues and sets the visions for national governments. Besides these, the EU also transport planning, urban planning and environmental promotes the implementation of overall transport measures. On the regional and local levels, urban city strategies and plans, such as78: planning as well as the organizational implementation of public transportation services are the main focus. • A European Strategy for Low-Emission Mobility In some federalized countries, such as Germany or (2016) Austria, or countries with devolved political powers and • EU Cycling Strategy / Declaration on Cycling as a a strong tendency for privatization, such as the United climate friendly Transport Mode (2015) Kingdom, additional policies regarding transport- • CIVITAS Initiative: Cleaner and better transport in related issues are prepared at the regional level. cities: approx. 80 European cities promoting and The detailed overview of the transport policies in the implementing pilot projects benchmark countries can be found in Annex 7. • European Commission’s Sustainable Urban Mobility campaign (2012): under the slogan “Do the right mix”, the EU promotes projects on 6.4 CENTRAL ISSUES FOR LEGAL sustainable urban mobility in EU member states • CLARS Platform (Charging, Low Emission Zones, FRAMEWORK IN KAZAKHSTAN other Access Regulation Schemes): a platform to In Kazakhstan the emergent central issues relate both share pilot projects on low emission zones to the overarching structural approach to governing • Intelligent Energy Europe program (STEER): it P/T organization as well as the operational aspects of promotes the intelligent use of alternative energy P/T contracting: sources, among others in the transport sector

Table 6-1: Current regulatory issues and their manifestation in urban P/T

Issue Manifestation Top down P/T P/T Policy in Kazakhstan is top down, therefore “blanketing” all cities in terms of regulations. policy approach; Local Government has no power or authority to apply special requirements concerning local aspects. For partial example, the methodology on tariff calculation is unified for all regions in Kazakhstan, except for Almaty exceptions for and Astana. Consequently the Local authorities have no devolved powers to design and adapt more Almaty and intricate tariff systems (e.g. time-, distance-based) for their city/ regions in order to develop and raise Astana only customer revenue in a socially acceptable manner. Currently there is no delineated public transport authority on national and local levels responsible for P/T organization and revenue distribution. In Kazakh cities public transport is commonly organized (transport planning and organization, tendering and procurement, subsidies) by the department of housing and communal services’ transport division, with the exception of Almaty and Astana where dedicated PTA’s have been initiated. Results from the international benchmark show that a host of various P/T authority structures exist, mainly linked to the level and scope of devolved powers Introducing PTA should be reviewed on a city-by-city basis to aid the implementation of a unified ticketing system and efficient network organization.

78. https://ec.europa.eu/transport/themes/urban/programmes_projects_en

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 65 Transport Association growth is seemingly slow. Currently there are several associations which support transport however very few are dedicated to P/T. Consequently cities lack a tailored and structured framework to coordinate public transport planning and operations according to city-specific needs. Additionally, Kazakhstan’s Strategy 2050 and its National Transport Policy primarily focus on national transportation with special emphasis on freight traffic and involvement in Eurasian corridors. The urban transport targets and future development strategy are not clearly specified within this framework. Consequently public transportation is paradoxically both primarily regulated by national law yet simultaneously underrepresented in overarching national strategic outlooks. However, local self-government is gradually being addressed as a central issue by implementing the Commission for the “Development of Democratic Reforms”. One of the results was the new constitution as of March 2017 that transfers more powers from the president to the parliament. Budget approval Maslykhat is entitled to approve the budget and subsidy amount. Simultaneously the procedures of and financial calculating subsidy levels are governed by national level regulations. Consequently disparities between support the central set level and needs for financial support may arise, risking either inefficient “over-funding” of level setting P/T or the opposite – a lack of funding and hence marked loss-making for the transport operator(s). at different governmental levels Gaps in Lack of procurement standards (no specifications for transportation companies to fulfil their obligations in a procurement contractually binding manner as well as consequences for non-adherence), and cumbersome procurement standards and process.The Law on concessions is not comprehensive, gaps deter private sector investment in PPPs. No concessionary clear regulation to control PPP exists as well as the mechanism of transferring the state owned property to the agreements private property in the P/T sector. For more detail, see Chapter 5.2 on PPP. Lack of an available payment scheme; impossibility of using international arbitration; unwillingness to ensure creditors’ step-in rights in case of default of the concessionaire; and treatment of the foreign exchange risks. Bus licenses are granted; however, the quality standards as required by law on e.g. general safety requirements are not checked by the government. Therefore a monitoring and reporting system should be clearly set out and operators held accountable for meeting the defined standards. Lack of The privatization processes for urban bus services lacks subsequent sufficient regulation. Consequently regulation for this runs risk of leading to low service (e.g. non-compliance with operational schedule, poor quality of privatization bus interiors, lack of route information, lack of mobility level offered to customers, under- or inadequately qualified personnel, non-compliance with a route destination) and safety quality (non-compliance with technical maintenance scheme and standards, operation using old/outdated vehicles).

and quality of the services to be delivered under the 6.5 KEY RECOMMENDATIONS contract as well as any paid compensation by the The current legal framework for public transport in local government to the transport operators for the Kazakhstan has a number of significant shortcomings, agreed services. In any case, the new legislation should and, therefore, a new national legislation for P/T, i.e. a consider to make Public Service Contracts obligatory Law on Urban Public Transport, is required. Contrary to under the law, which means that public transport cannot the present situation the National government should be delivered without a Public Service Contract in place. only set out a supportive legal framework for urban The new legislation should also recognise, in addition to public transport. The new law should delegate the all safety and quality aspects, and allow for that “price” actual implementation of organisation and management can be a criteria for award of a PSC. This would foster the of public transport to the regional and local level to introduction of Public Service Contracts in Kazakhstan’s the respective regional and local governments. The P/T. Therefore, the national Government should define legislation should give freedom to local authorities to set: a framework for tendering of public transport services including the nature and the minimum contents of such (1) The tariffs and contracts, as it is, for example, common in Europe, but (2) The ticket range (type of tickets and travel passes without specifying the details. offered). Recognizing the currently overregulated situation, The new legislation / Law on Urban Public Transport efforts such as the CAST project address the bottom-up should recognise Public Service Contracts (PSC) as approach by identifying urban transport needs specific the main contractual document between the local to a city’s spatial and economic situation. Such efforts Governments and the transport operators (see Chapter need to be transported to higher governmental levels 6.5.3 Fehler! Verweisquelle konnte nicht gefunden to signal that partial devolution of powers to implement werden.). Such contracts should set out the quantity such measures need to be discussed and tackled.

66 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN The main recommendations can, thus, be grouped as follows:

Table 6-2: Overarching areas to be addressed with appropriate legal framework conditions

1) New Law on Urban public transport in Kazakhstan by handing other to the regional and local Akimats the responsibility for the organization and implementation of public transport services based on public service contracts (PSC)

2) Organization 4.) 6.) Safety and 3.) 5.) Tariff differ- 7.) 8.) of PT at the level Financing and funding: security: Competitive entiation: Environmental Paid parking: of Akimats: Define adequate To ensure tendering: To ensure that protection: To ensure addi- To formalize and subsidies and means vehicle and To enable more revenue max- To mitigate neg- tional source of strengthen long- of cross subsidizing as service stand- efficiency for imally tailored ative effect of Akimat revenue term strategic effectively loss -making ards are met higher quality to urban socio PT and personal as well as differ- planning and business as urban PT and adhered standards in PT economic situ- cars use on ent for inner city locally relevant whilst ensuring socially to throughout services offers ation quality of life car trips implementation acceptable fare s operations

6.5.1 Overarching efforts on 13 June 2017); • The Law #476-II dated July 4, 2003 “On motor The National Government should set out a supportive vehicles” (amended on 5 May 2017); legal framework for urban public transportation and • The Law #148-II dated January 23, 2001 «On local should refrain from the detailed regulations and public administration and self-government». directives. • Participate in State working Group under The authority and responsible bodies of regional / city responsible Ministry and assist with development Akimat’s regarding public transport planning need to of suitable amendments to laws and regulations. be clearly defined (structurally in terms of required positions and qualified staff), their resources and • Develop concept proposals on the development of legislation for the Ministry of Investments and financing legally grounded. Akimat currently needs to Development to create a dedicated organization establish the decision-making authority for long-term which will deal with public transport organization public transport planning. procedures (this recommendation is inextricably It would also be required to issue other types of new linked with the following cluster). decrees and allocate a budget for the authority’s • Establish Urban Public Transport legislation by operation. This is under the assumption that such an the Government, delegating all responsibilities for authority shall be created in the form of a state-owned organizing and operating public transport to the enterprise with the right of economic management by Akimats and minimize any (detailed) associated the Akimat. regulations issuing a complete new Public The two most important cities of the Republic of Transport Law. Kazakhstan, Astana and Almaty, are governed by • Consider the introduction of Public Service special regulations adopted by the Government. Contracts (PSC) for public transport and develop For instance, it is agreed to amend the regulations a more suitable template for this matter taking of Municipal Public Institution “Public transport and into account the different needs in the cities motorways Department” of Akimat of Almaty city, and regions (modular/functional approach), or approved by the Decree #2/266 dated June 10,2016. abolish the current basic template approved by This authorises the Akimat’s department to create a the Government, allowing Akimats to develop new state-owned enterprise in order to gain authority their templates considering terms and conditions over fiscal matters regarding public transport. This suitable for their local need. specified document is applicable to Almaty only.

6.5.2 P/T Organization at national level 6.5.3 Competitive Tendering as well as regional and city level (Akimat) In future Akimat should strive to organize P/T services In order to implement the recommendation on and award contracts utilizing competitive tendering establishing dedicated public transport authority at procedure with the concentration on price and quality. the national level as well as regional and city level This intention should be backed by the Government (Akimats), the following laws and Decrees should be before any further steps are taken. It is therefore highly considered as the subject of amendment: recommended to: • The Law # 156-XIII dated September 21, 1994 “On • recognise Public Service Contracts (PSC) as transport in the Republic of Kazakhstan” (amended the main contractual document in P/T legislation

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 67 between the regional and local Governments and a. gross or net cost contracts the transport operators; b. constructive or functional Terms of Reference for • ensure national government award guidelines and tendering public transport services ; an overall framework for tendering and contractual • provide regional and local authorities as well as procedures by means of adequate national PTA’s with public service contract templates for procurement law and best practice service gross contract of public transport services. Also contracts), however, without a detailed regulatory allow these authorities to adapt the contracts, scheme. Detailed tendering procedures should fall where deemed necessary; within the remit of local government; • include in PCS’s templates a standardized • allow the possibility to tender on the basis of performance assessment/monitoring tool in order bidding “price” in addition to the tendering on the to motivate transport operators to good quality basis of quality and company requirement; transport services and have the legal framework • devise a diversified compensation/subsidy model: for control, including definition of incentives and deterrents; a. take a distance from compensating a specific route; this approach is more sensible if it refers to • define selection criteria based on a relationship school-related traffic, for instance. In this case, between services and quality offered as well as school/student transportation can be compensated prices separately (this should be covered in a dedicated • Generally it must be noted that prior to implementing school transportation law on regional/local level); PSC successfully for public transport in Kazakhstan, the following overarching requirements need to be b. compensate specific passenger groups based on met: social criteria through fares; most commonly known are reduced fares for elderly, disabled, children, a. A working legal system must be in place that allows students & trainees and offer fares to attract and the enforcement of such contracts79 reward daily users, for instance through monthly/ b. The authorizing body (e.g. PTA) and the private yearly tickets for employees; operator(s) must be legally or at least organizationally 80 c. make a qualified decision on whether to use net or separate entities gross contracts; c. The PTA must be willing to make its arrangements d. Include a price variation clause in contracts: it both transparent and binding (e.g. by using long-term allows for an adaptation of the prices paid for long- commitment in form of contractual duration) term contracts and services provided over a long In case of considering the implementation of net or period of time (often based on a formula, for instance gross contracts paid by vehicle km it is necessary to in the basis of the inflation rate); analysis in advance associated advantages as well as • additionally discuss options of fiscal equalization disadvantages: schemes by which taxes from more prosperous regions/cities are relocated to subsidize public transport in economically weaker regions of Kazakhstan; • enable regional and local authorities to law-making and to defining own transparent procurement guidelines and selection criteria; • refrain from the current rather technocratic approach of norms, policies and regulations at the national level and move on to flexible decision-making and policy-making processes at the local level; provide 79. Regulation (EC) 1370/2007 suggests in Clause 29 to advertise a new Public Transport Law that delegates detailed future activities in this regard at least one year in advance: “With a view to the award of public service contracts, with the exception of policy-making and organizational issues towards emergency measures and contracts relating to modest distances, regional and local governments; the competent authorities should take the necessary measures to • decentralize and simplify the procurement and advertise, at least one year in advance, the fact that they intend to award such contracts, so as to enable potential public service contracting process; the national government operators to react.” should prepare an overall framework, whilst 80. When preparing and implementing a procurement process allowing regional and local governments to own for public transport services, the Terms of Reference need to be detailed directives, regulations and guidelines; defined by the contracting authority. This can be done in two ways: 1) Constructive ToR: the PTA/contracting authority provides a detailed • ensure early-on publication of future public description of services offered, quality measures, timetable, etc. transport tendering processes and contracting 2) Functional ToR: the PTA only provides an overall framework (for instance number of routes), details are left to the transport operators • allow local governments to make decisions for proposal. Source: https://www.vdv.de/130911-vergabe-im- regarding wettbewerb.pdfx?forced=true

68 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Table 6-3: Advantages and disadvantages of net and gross P/T contracts

Advantages Disadvantages Gross cost contract: Reliable calculation for operator. Low incentive for the transport operator to increase Transport operator receives Low barriers for market entry. passenger numbers. pre-defined compensation High legal certainty. High level of regulations. be vehicle-km Enforcement of public interests (for High monitoring efforts and combination with example tariff). incentive/penalty systems Simple integration in P/T associations. Revenue risk lies with the authority; budget reliability for public authorities is certainly in place, but Competition neutrality. operator has no direct incentive to ensure revenue collection Service improvements are initiated by the authority which may result in a lack of innovation. Net cost contract Transport Transport operator has an Transport operator carries the primary revenue risk operator receives the entrepreneurial interest in attracting Lower influence of the transport authority over engrossed revenues and more passengers and providing good services provided the purchasing charge quality services More difficult integration into tariff associations, but Enforcement of public interests possible Transport authority has an interest in providing good quality services as higher revenues reduce the gap that is financed by the authority

Making the right decision at the procurement stage 6.5.4 Financing and funding allows for achieving the best cost-benefit ration whilst reducing associated risks. The following individual Refine and reform existing subsidy agreements. aspects should be taken into account81: Subsidy arrangements currently set out in Kazakh national legislation can be replaced by a model of Table 6-4: Assessment of individual aspects compensation payments for services provided under regarding the implementation of Procurement contractual agreements (subject to tender) at the processes in public transportation local/Akimat level. This approach follows the one Vehicle Too detailed requirements provide no adopted by EU in its regulation 1370/2007 on public Requirements significant benefitfor passenger passenger transport services by rail and by road by which compensation to public transport operators is Costs increase substantially when covered by the mandatory rules for the content of the vehicles cannot be deployed flexibly public service contracts82. Recommendation: lowest possible common level of detail The payment can be based on a price per vehicle km Ordering & but also involve further criteria, especially with regards Generally small level of flexibility Cancellation to service quality. Ascertaining vehicle km correctly High risks for more vehicles and drivers needs to be carefully addressed when drawing up Recommendation: transparent the detailed contractual agreements. Basically a regulation that covers possible unified approach needs to be communicated to P/T additional costs operators. Suitable options to ascertain contractual Decide on whether to tender several payment are daily meter readings for actual km lots at once (this however includes dead mileage as well so a formula to subtract these needs to be devised) and/ Lot sizes should be friendly for various Size of Lots transport operator’s sizes Use synergies in more than one lot Recommendation: no limits on Lots, 81. https://www.vdv.de/130911-vergabe-im-wettbewerb. pdfx?forced=true allow for general proposal 82. Regulation (EC) No 1370/2007, Clause 27: “The compensation Open competition leads to pressure on granted by competent authorities to cover the costs incurred in salaries discharging public service obligations should be calculated in a Employee way that prevents overcompensation. Where a competent authority Staff quality needs to be maintained salaries plans to award a public service contract without putting it out to Recommendation: ensure that social competitive tender, it should also respect detailed rules ensuring that the amount of compensation is appropriate and reflecting a standards are kept desire for efficiency and quality of service.”

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 69 or (a calibration) with the contracted timetable and 6.5.7 Environmental issues corresponding routes (= scheduled km) and other parameters like punctuality. Revise and improve technical standards for emissions Create a close link between the provision of subsidies from motor vehicles at the national level. and the implementation of certain requirements to Improve regional level legal acts implementing the transport company on national, regional and local injunction of high-emission private cars in downtown levels. Subsidies are never unconditional but tied to areas. Define exclusion zones or low emission zones the level and type of services offered. as well as the option for congestion charging. Decide on a principal approach (or a mixture of these) Define standards for sustainable forms of in either subject-financing (i.e. subsidizing fares transportation: Clearly define the criteria of an for certain socio-economic groups) or supply-side environmental zone and their control mechanisms. subsidies (i.e. fund transfers to operators for certain Pass a decree to adopt the regional law, should the services, regardless of passenger types). introduction of environmental zones be considered Define and refine acceptable farebox revenue ratios. both desirable and viable. Take into consideration average utilization rates. Develop and implement national level controlling Again, this discussion cannot happen in isolation from mechanism for Euro-4 standards. discussions about tariff setting. Existing KPI on farebox Technical Standards of public transport vehicles: revenue would also greatly aid such discussions. develop a decree to adopt the resolution and implement it technically at the local level. 6.5.5 Tariff differentiation and regular Provide a regional/ local environmental plan as a guideline for sustainability and improvement of air review/actualization quality. This requires cross-sectorial cooperation with Draw up a draft regulation on tariff differentiation other urban planning departments (housing, energy). and identify the differentiated tariff determination procedure. The National legislation should delegate any matters regarding payment options, tariffs and 6.5.8 Paid Parking tickets to the local governments. This also means that Develop legislative proposals on paid parking and the local governments should have a right to set the public transport. Set up a decree for the definition tariffs and tickets types. of parking rules and parking fees in city centers at a The first step has been done for Almaty: The general level, the details should be left to the local recommendations on differentiated tariff have been government and minimize any related regulations.. reflected in the Law #59-VI dated May 5, 2017 “On Develop city-specific parking strategies at the level amendments to transport related regulations of the of Akimat. These should evaluate possible parking Republic of Kazakhstan”. This practice should be payment schemes and adopt the most suitable extended to the other regions and cities of Kazakhstan. scenarios to the respective cities. The strategy – including plans for Park & Ride – should include a clear roll-out procedure including mass media efforts 6.5.6 Safety and security to inform the public and assure local residents and Monitor safety and security standards implementation. businesses located in downtown acknowledge and Ensure public transport operators follow these accept it. accordingly. i.e. that stipulated working conditions for employees in the area of P/T are met. The effort can be supplemented with the set of agreed and developed KPIs.. Especially with regards to perceived safety and security from a passenger’s perspective, detailed knowledge regarding quality management and monitoring methods must be obtained. At regional and city level (Akimat) ensure a decree is issued to implement the national Law on Safety and Security. This is paramount for any prospective procurement efforts of public transport services. At regional and city level (Akimat) also ensure relevant decrees are issued in order that existing national laws addressing vehicle standards are implemented and adherence is followed up and monitored (see first point on KPI).

70 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN KEY PERFORMANCE INDICATORS (KPI) IN PUBLIC TRANSPORT 7

Best practice research into the nature and use of KPI in 7.1 ОПИСАНИЕ ОБЩЕГО public transport suggest that more than 400 different ПРАКТИЧЕСКОГО ПОДХОДА performance indicators in various performance categories such as: KPIs in public transport sector are one of the most • Availability, important indicators for public transport companies • Service delivery, in European cities. Once developed, a set of KPIs for PPP in public transport can highlight the operational • Community impact, and general company management levels. It is the • Travel time, most efficient tool for controlling and improving the • Safety and security, level of public transport service which should also be • Maintenance and construction included in PSC. The KPIs are directed to monitoring and ensuring: are used in the public transport industry today (Ohingra, 2011). Their design and definition can, thus, take 1. endorsement of public transport; i.e. modal split on various levels – depending on what performance and public acceptance of the system; needs measuring and why. A widely consulted source 2. improvement of travel efficiency/ increasing ridership; for KPI in public transport, the Transit Cooperative Research Program (TCRP) Reports indicates that 3. improvement of accessibility and affordability; operational public transport KPI (e.g. travel speed, 4. Improvement of service quality; congestion delays, accidents and fuel consumption) can be utilized for evaluating both system performance 5. Safety improvements; as well as transport planning efforts (TCRP, 2010). 6. financial sustainability of the system; and Generally, the following considerations must 7. improved financial and operational management of be adhered to when planning of a KPI-system the companies. implementation: With regards to the current situation on the availability 1. Before selecting any KPI, define goals and of general economic data/indicators relevant to public objectives, i.e. what must be met and how should transport, the following gaps are existent in Kazakh this happen? Only then determine the appropriate public transport: measures (KPI). • Regional operator data is unavailable. 2. Define target ranges (internally in P/T companies, but • Lack of clear legislation for regional operator data also as part of PSC), against these KPI measurement generation, sharing and evaluation. will take place. These are clearly linked to the goals • Lack of data for public transport financial and their objectives. development, passenger flow (in cities and 3. Adhere to KPI selection criteria (see Table 7 1:) – regions), number of employees in public transport this step is paramount. organizations. 4. Ensure consistent, coherent and transparent data The reason for this appears to be a lack of clear generation, evaluation and reporting to maximize KPI legislation for regional operator data generation. validity as their explanatory power is only as good as their measurement. Therefore a structured debate of and approach to setting up a sustainable and effective KPI system is 5. Data consistency and integrity must be given priority highly advisable. over detailed data resolution. It is advisable to use up-

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 71 to-date data of a coarse temporal or spatial resolution, are comprised of no more than 20-30 KPI thereby rather than outdated but fine-grained data. ensuring well-arranged and manageable data and avoiding “data graveyards”. 6. The benefit of the information obtained from the data must be regarded in due proportion to the 7. Indicator selection should be guided by the following required maintenance efforts. Good KPI systems properties or requisites83: Table 7-1: Indicator selection criteria

Key property Key questions 1. Measurability Is indicator measurable with available tools and resources? Are the cost levels reasonable? Can data be retrieved through field measurement? 2. Predictability Can indicator allow the comparison of future alternative projects/strategies? 3. Clarity Is indicator clearly understandable to transport policy makers, the wider public? 4. Usefulness Is indicator truly a direct measure of the issue at stake? Can the indicator assist in determining further action? 5. Multimodality Does indicator apply to all modes of transport affected by/determining this particular measure? 6. Temporality Is indicator comparable across time? Which temporal aggregation84 criteria apply? 7. Geographical scale Is indicator applicable to the appropriate spatial level? Which spatial aggregation85 criteria apply? 8. Control Does indicator allow monitoring and correction of the measured characteristic? 9. Relevance Is indicator relevant to urban mobility planning and project design processes? Does the indicator supply decision-makers with relevant information?

Generally there are distinctions between internal KPIs to monitor operational performance issues (in PPP) and external KPIs that feed into national transport statistics databases and are made publicly accessible, allowing for comparisons between years and/or regions/localities. For Kazakhstan it is recommended to follow this split too.

Table 7-2: Comparison between internal and external KPIs in Public Transportation

External KPIs for Urban Mobility/National Level Internal KPIs for P/T Operations Transport Statistics The word “key” is central in the definition, as it The definition of Urban Mobility Indicators is understood suggests that any company interested in measuring its to describe a set of quantifiable measures that local performance needs to select a set of central statistics authorities involved in planning/running public transport to P/T operations. The challenge lies in finding and can use to compare performance in terms of meeting both condensing the appropriate KPI in order to measure and strategic and operational public transport goals, similar to Definition monitor the degree with which target achievement levels the rationale behind the commonly KPIs in the production have been reached. and service industry. If defined, gathered/surveyed and evaluated consistently Key questions guiding the use of Urban Mobility Indicators and correctly and set against a pre-defined target values, can, thus, be summarized as follows86: KPIs have a high degree of informative significance. They 1.) Who is better? can: 2.) If so, by how much? • represent the current state and highlight deviations to 3.) Why are they better? the target state; 4.) What can we learn from them? • identify potential goals; 5.) How can we apply this to our situation?

Purpose • evaluate performance; Of course at a national level, P/T data comprises only a • strongly simplify reality, rendering it manageable for fraction of relevant transport data. To derive a comprehensive analytic purposes and substantiated decision-making; transport statistics database, indicators for rail, air, maritime • enable forecasting to assist future planning; and and freight transport need including as well. This is, however, to • allow for a better assessment by means of offering be addressed separately. The current review focusses on P/T comparisons over either a certain period of time data in national statistics, allowing of comparative analyses.

83. Kaparias, I & Bell, M (2001) KPI for Traffic Management and Intelligent Transport Systems, London Imperial College 84. Day; Sub-period of the day (i.e. hour/AM-PM); Year; Sub-period of the year (i.e. quarter/month/week) 85. Compatibility on predetermined special category level or distance-based measurements, i.e. km 86. Benchmarking and Quality Management in Public Transport (2003) PORTAL Written Material

72 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Internal KPIs are usually determined by the respective The determination of key urban transport statistics at a local Transport Operators themselves and use for controlling and regional level and compiled at the national are guided purposes. Additionally KPIs serve as a standardized by national and – in the case of the EU supranational – reporting mechanism between the operator as contractor guidelines and policies (e.g. White Paper on Transport, and the local authority a client body. Reporting obligations “Vision Zero” reducing road fatalities by 2050, Climate are outlined in the P/T contracts and must be adhered to Action Plan and etc). Urban planning documents in turn strictly. draw upon KPI data to derive strategic planning decisions and targets. Data requirements and reporting obligations are set out in

Key Documents/ Procedures corresponding EU regulations by transport mode. International Bus Benchmarking Group – uses 35 KPIs to Urban Audit Database – includes transport/mobility monitor 6 categories: asset utilization, efficiency, service component and allows city comparisons. quality, safety & security, environment, and financial performance87. Introduce the Company benchmarking approach to compare the main KPIs. The relevant KPIs could be grouped into the following categories: 1. Financial. 2. Customer satisfaction. Best Practice Examples 3. Safety and security. 4. Operational efficiency.

Figure 7-1: KPI data and evaluation interdependen- Table 7-3: KPI levels and perspectives in Public cies in P/T Transport Enterprise Target values/ranges matched with suitable KPIs to Customer perspective perspective assess m eeting these outlined as data and reporting requirements in PSC/public transport concessions Infrastructure provi- Infrastructure quality sion (network length) (cleanliness of stops, Vehicle fleet compo- available timetable infor- sition (age, environ- mation…evaluate service Policy level mental standards) requirement standards) Load factor Convenience Transport Authority Перевозчики Costs per vehicle-km Comfort Set out KPI definition, Agree to monitor Transport quality Speed recording and reporting operational performance level procedures in PSC/ and reporting procedures Reliability concessions according to contract Microeconomic Affordability Analyze P/T Operator Utilize operational KPI for Reviewing available KPI for public transportation an data and distill data internal evaluation and initial “shortlist” has been drawn up for further analysis for national statistics efficiency gains and tailoring to Kazakh urban public transport. It must database on P/T be stressed that this list is neither comprehensive nor to be viewed as a set blueprint for KPI implementation but as a starting point for furthering the debate on introducing such a system. After reviewing KPI best practice examples as well as widely consulted KPI handbooks and combining this information with Structured data recording in line with preagreed the overarching themes from the policy review, an standards and transmission from P/T operators to overview table has been drawn up outlining: transport authority • Specific KPIs at the operational level • Specific Urban Mobility Indicators (higher level KPI) at both the local and national level • Key target groups potentially interested in evaluating/analysing the respective KPIs KPI can be regarded both from the enterprise as well • Data requirements to record/obtain specific KPI as the customer perspective and monitor progress or shortcomings both at the policy implementation as A comparison of the main KPI-cluster focuses with well as the microeconomic level (Ohingra, 2011) and CAST policy measures indicates how specific KPI may thus fulfil multiple purposes: be aid evaluating these:

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 73 Table 7-4: KPI excerpt and linkage to CAST measures

Potential to eval- Theme Aim uate the following CAST measures Demographic To monitor and forecast service area population n/a87 Safety and security To assess situation (actual and perceived) both within network as well as on 1 board the vehicles Legal To set out framework requirements for operations to determine KPI selection 2 / 7 / 8 Operational To measure reliability, to indicate scope of P/T offer and associated facilities 1 / 3 (e.g. parking) Passenger service To ascertain perceived and actual comfort and accessibility of services and 1 / 7 / 8 quality information Economic/Fiscal To determine the utilization and efficiency of P/T and associated operations 1 / 3 / 4 (e.g. parking) Environmental To record vehicle standards, travel behaviour, emissions and noise 5 / 6 / 8 Measures as identified 1.) Improve public transport service levels 2.) Integrate transport and urban planning by CAST: 3.) Manage parking 4.) Manage traffic 5.) Promote cycling 6.) Promote low emission car-zones 7.) Integrate the suburban transport network with the city 8.) Develop road-based transport in a sustainable manner

Table 7-5: Recommended KPI for operational evaluation of P/T Services and input into national Transport Statistics Database Cluster/ Main Operational KPIs at P/T Urban Mobility Indicators Key Target Data requirements overarch- service level at local/national level Groups ing theme

- n/a 1. Service area population (total Transport Urban population statistics, then fil- number). planners tered by P/T catchment area  there- Demo graphic fore high spatial resolution needed. 1. Accident rate (injured, fatali- 1. Number of fatalities: Safety ex- Police records, annual absolute ties, damage to property only) at by mode of transport perts, Road numbers of injured and dead due to 10.000 vehicle kilometers. by age and gender planning di- transport-related accidents. 2. Crime rate per 100.000 vehicle vision, local Company records, absolute number km (and by victim category: pas- authorities of fatalities (injured and deceased). sengers, bus staff, public trans- Transport Op- Company records for total transport port organization property). erators service offer (vehicle kilometers). 3. Number of formal security For perceived safety rating mystery checks at stations/stops and on- shopping is required: spot-checks and board. counts on number of security person- as well within the vehicles

Safety & Security: on the roads Safety & Security: on the roads 4. Perceived safety rating. nel at P/T hubs, conductors onboard. Number and type of local authority Number and type of national Politicians, The (Kazakh national) “Model contract level regulations for P/T. level regulations for P/T. transport op- for the organization of regular passen- erators and ger and luggage transport”. planners Public Service Contracts. The legal provisions and the practice of organizing and tendering lines in PT (competition practice).

Legal: framework Legal: framework Rules and practice of subsidizing PT

determine KPI selection and especially losses for operators

requirements for operations for operations requirements (budgetary funds).

87. this is a baseline KPI 88. E.g. for example for journeys to work in Urban Audit Database: Share by car, P/T, motorcycle, bicycle, foot (in %), annual KPI 89. The thresholds presented in the KPI here are based on European best practice examples, Kazakhstan may wish to discuss and set nationally appropriate thresholds diverging from the European examples. The same applies to traffic noise values

74 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 1. Vehicle kilometers. n/a Internal P/T Internal Operator records: fleet man- 2. Frequency of services. Operator agement, maintenance schedules, 3. Vehicle service hours. controlling breakdown reports, staff training re- 4. Percentage of scheduled vehi- unit cords, timetables. cles placed into service. Transport au- For vehicle km: if possible distinguish thority man- between revenue-generating km offer 5. Average vehicle age. agers, service and deadheading km. 6. Vehicle/rolling stock breakdown planners rate (pre-trip, during trip).

Operational: To measure measure To Operational: 7. Number of staff training days

reliability, indicate scope of P/T reliability, and courses. 1. Punctuality of services (% of n/a P/T Opera- Formal customer complaints system service on schedule). tors with categorization of complaints 2. Cleanliness and comfort at Contracting (CMS), annual evaluation. stops and onboard vehicles. Authorities P/T Operator develops measure- 3. Customer information levels ment system and appraisal scale for during scheduled services and cleanliness of stops  evaluation unforeseen events. takes place by means of trained staff 4. Professionalism of drivers/staff who check stops and vehicles and (knowledge, service orientation, assign marks according to predeter- appearance, driving style). mined scale.

of services and information 5. Number of low-floor vehicles (easy access for impaired pas- and actual comfort accessibility Passenger Service Quality: Perceived Passenger Service Quality: Perceived sengers). 1. Ridership (by age group; ticket Cost of a single fare ticket. Economists, For passengers: driver logs, manual/ type, service number/line). Cost of a taxi ride of 5 km to the transport ex- automatic counts. 2. Labor cost per bus and/or kilo- center at day time. perts. Maintenance records. meter (Bus driver, mechanics, con- Transport Op- Ticket sales records. ductors, administrative staff wages). erators. Staff payroll records. 3. Farebox recovery ratio (fare rev- Average taxi pricing scheme. enue (ticket sales) divided by the To arrive at these KPI general infor- total costs). mation such as total annual reve- 4. Fare revenue per passenger. nue-earning kilometers need to be 5. Maintenance expenses. known  operator records.

efficiency of P/T operations 6. Human resource utilization

Economic/Fiscal: utilization and (Staff cost per revenue km). 7. Staff absenteeism rate. 1. Average vehicle age. 1. Modal Split (% of walking, cy- Transport For modal split: household surveys, 2. Number of low emission vehi- cling, P/T, car)88. Planners, po- traffic counts. cles 2. Number and age of private litical decision For fleet composition/age: P/T oper- 3. Number of vehicles with en- cars registered. makers ator records. gines with dual system technology 3. Length of bicycle network Town planners For GHG-emissions: urban air quality (hybrid). (dedicated cycle paths and Residents measurement networks + threshold 4. Number of vehicles with high lanes) – km. setting for upper acceptable limits89; measurements of high temporal res- fuel quality standard (Euro 4; Euro 4. Number of days of ozone O3 5). exceeds 120 µg/m³. olution (i.e. hourly recordings). 5. Number of electric vehicles. 5. Number of hours nitrogen 6. Total electrified network length dioxide NO2 concentrations noise (in km). exceed 200 µg/m³. 6. Number of days particulate matter PM10 concentrations exceed 50 µg/m³. 7. Proportion of residents ex- posed to road traffic noise >65 dB(A) at day time. 8. Proportion of residents ex- posed to road traffic noise >55 Environmental: vehicle standards, travel behavior, emissions, behavior, travel vehicle standards, Environmental: dB(A) at night time.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 75 Secure time and funds: Consider and plan to allocate 7.2 KEY RECOMMENDATIONS separate funds for corresponding hard- and software FOR KPI APPROACH requirements, staff training and ongoing supervision both internally for those involved in data evaluation at The following recommendations build upon each local authority level as well as on the P/T operator side. other and generally fall into three broad categories: 1.) Strategic groundwork – paving the way 7.2.3 Long-term outlook 2.) Data-oriented, practical approach – preparation and implementation Consider linking up with other cities in Kazakhstan to benchmark P/T efforts, environment improvements 3.) Long-term outlook – nice-to-have scenarios and modal split progress by sharing a set of It is therefore advisable to follow them in chronological predefined urban mobility indicators (derived from KPI order when working towards a bespoke KPI experience). system in public transport in Kazakh cities. The Consider joining existing international benchmarking recommendations are listed in more detail and with groups (e.g. International Bus Benchmarking Group) an allocation of the main responsibilities to the various to foster joint learning and share information. stakeholder parties (national/central government, local/Akimat and P/T operator) in the detailed report. Consider introducing continuous data transmission (not only for operational daily running of Command and Control Centre) between vehicles and mandatory 7.2.1 Groundwork dispatcher system but also to record and evaluate real-time data (e.g. punctuality, break-down of Define goals and targets from which the services) and display this at bus stops. This approach performance measures are derived in order to guarantees valuable operator-specific KPI for internal measures these. Such requirements should be use. common practice in the contractual agreement between Akimat and operator as PSCs contain a monitoring system to track and evaluate service quality levels. Considerable time and effort must be devoted to the preceding steps of setting up a sound contractual scheme. This step is inextricably linked to PSC design. Set up a KPI Task Force within the local authority and include individuals from other departments (to foster cross-sectorial, strategic planning) as well, especially urban planners/architects as certain P/T related KPI will be of great interest and use to associated fields as well.

7.2.2 Data-oriented, practical approach Start small: define a key set of indicators and include obligations to record and share these key figures in future contractual agreements with (bus) operators. Clearly set out how exactly to determine key KPIs such as vehicle-km and in what temporal and spatial resolution these are required. Remain pragmatic: Consider trade-off between data recording efforts and output significance; consider annual values as a sensible compromise but also devise updating algorithms for KPI that cannot be ascertained on an annual basis (for example manual passenger counts). Ensure clarity: data definition needs to be consistent and clear to third-parties. Therefore ensure data comparability, so spend significant time and effort planning the KPI system, including the development of a staff handbook.

76 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN SCENARIO DEVELOPMENT 8

The figure below illustrates the joint approach from scenario development via SWOT analysis towards strategic choice and policy implementation strategy and thus summarizes the steps taken in the following chapters.

Figure 8-1: Joint Approach from Scenario Development to Policy Implementation

Pessimistic ( do nothing 1.) Realistic (do something) Scenarion development Optimistic(ideal preconditions)

Assessment of 5 PR areas: regulatory, 5.) Policy 2.) 4.) strategic, financial/ organizational, implementation SWOT Analysis Scenario selection environmental infrastructure strategy

Preferred scenario definition Preferred scenario definition Policy impact rating on the economic, based on SWOT analysis and based on SWOT analysis and environmental, operational or 3.) Strategic Strategic choice analysis Strategic choice analysis organizational PT aspects choice analysis

8.1 METHODOLOGICAL APPROACH options for development. Scenario development generally follows the following A scenario analysis is used as a form of exploratory steps: analysis of future developments. Scenarios are understood as consistent and coherent descriptions 1. Problem analysis of alternative hypothetical futures that reflect 2. Analysis of influencing factors different perspectives on past, present, and future developments, which can serve as a basis for action. 3. Factor clustering and definition of indicators Scenario development is a common and systematic 4. Development of three scenarios approach to analyze the present and sketch future developments, allowing for the preparation of possible 5. Analysis of scenarios and rating of policies within strategic choices and developments. each scenario The general objective of scenario development is to: 6. Development of strategies and measures for problem solving • ensure consistencies within each scenario; • ascertain stability of scenarios by ensuring that all Based on steps 3 and 4, three different scenarios indicators influencing developments have been have been developed for this project: integrated and assessed properly; and 1. Scenario 1: will show developments in case the • allow each scenario to show the extremes and status quo is maintained; it can also be referred to as differ from the other ones in order to visualize the pessimistic scenario.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 77 Figure 8-2: Methodological approach to scenario analysis

Chapter 6 Chapter 1 - 4 Chapter 5 Chapter 8 и 7

Empirical Implementation data,Stakeholders measures Assessments,studies Scenario 2: Pessimistic

Scenario 2: Strategic Origin Trend choice Destination

Scenario 3: Optimistic

Current situation Near future Distant future

2. Scenario 2: will show developments under the The scenario development and further scenario precondition that the course of the CAST project is analysis build upon the data gathered and analyzed continued, its implications, and envisaged realistic in the previous chapters. The scenarios are created changes. by assessing the qualitative and quantitative data and estimating their effect on future developments. 3. Scenario 3: contains developments under perfect circumstances and constitutes the optimist The figure above illustrates how a scenario can scenario. be generated. In the present, past and current developments are analyzed and the effect of certain Each scenario will show the expected developments incidences (e.g. economic, policies, demography, measured by certain indicators for political, economic, natural disasters, etc.) accounted for. Measures to social, and environmental and public transport be taken in the near future that influence the current development. and past developments are identified; these in return As a last step of scenario analysis, strategies and have an effect on the outcome in the distant future. measures of problem solving will be suggested and The scenario, thus, is the result of the combination of assessed in terms of their feasibility. measures and outcomes.

Figure 8-3: Explanation: What is a scenario? Scenario

Measures Outcomes

Optimistic scenario

incidence

Trend scenario

incidence Pessimistic scenario

Present Near future Distant future

78 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 8-4: Key influencing factors

Socio-economic Environmental Traffic-related Organizational

• GDP • Air pollution • Motorization rate • Policies for public • Employment • Natural circumstances • Overall transport network transportation • Income • Noise / system • Overall public transport organization • Industry & Services • Car filters & national or • P+R facilities • Public transport financing • Urbanization supranational (e.g. EU) • Ticketing standards • Contracting and • Demographic • Bicycle & pedestrian concessions development feeder systems • Procurement systems • Public Transport • Ticketing & fares and procedures Investments • Alternative transport modes • Safety & security • Alternative propulsion systems for busses

scenarios and the policy rating in the following 8.2 INFLUENCING FACTORS chapters. Taking into account the data analysis results, the First, the point of origin regarding above mentioned following key criteria and factors influencing the current criteria is briefly summarized; this point of origin is and future development of public transportation have the same basis for all three scenarios and it generally been identified and are used for both the scenario reviews where Kazakhstan currently stands in terms of development as well as the strategic choice for public transport policies: Table 8-1: Scenario development – criteria and points of origin

Criteria Point of origin Kazakhstan is among the transforming states with increasing economic growth It has an average GDP per capita of 7.000 US Dollars Socio-eco- The average income has increased over years as well nomic Since the beginning of the century, the unemployment rate has been decreasing significantly, currently at approx. 5% Kazakh cities experience a high urbanization with an average of 55% of inhabitants living in cities Kazakhstan has the highest GHG emissions in Central/West Asia, Almaty has the highest in the country, topographic factors (mountain range proximity) as well as industry and transport (80-90% caused by Environmen- transport) induced pollutants contributing to this tal High motorization rate and insufficient public transport system leads to traffic congestions and increasing urban air pollution Challenges in PT according to survey: 49% traffic jams and congestion, 35% environmental damage due to high GHG emissions, 8% each high energy consumption and accelerated depreciation of PT vehicles In several cities, certain transport modes were reduced due to non-compliance with safety standards (e.g. Traffic-re- tramway in Almaty, trolleybuses in Astana) lated The private car-ownership rate in Almaty is above average in Kazakhstan Difficult situation regarding the quality of routes and street in Almaty that haven’t been designed for so many cars, plus public transportation Only in Astana and Almaty have recently developed dedicated public transport authorities Their tasks include timetabling, transport operations for various transport modes, cooperation with the City Akimat Organiza- The majority of the public transport system seems to be primarily financed through revenues; this is tional/Polit- especially the case for private bus operators (of which there are many); governmental subsidies exist for ical socially important routes only The city’s Akimat financially support tickets for students as well as elderly or disabled The bus operators receive concessions for certain lines from the City Akimat, though the tendering process (scope and conditions) is shaped by national governmental regulations and leaves little freedom of design for Akimats

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 79 In the following chapter, the three scenarios are analyzed regarding their measures and expected results from these measures. It is important to note that not all measures are taken internally and consciously; each city faces certain developments they cannot fully influence, such as growing urbanization, demographic development or birth rates. Nonetheless, it is wise for cities to react to these external changes appropriately in order to allow for an adaptive and reliable transport system. 8.3 SCENARIO 1: PESSIMISTIC SCENARIO The pessimistic scenario results from an assumed lack of policy measure implementation. Table 8-2: Scenario 1: Pessimistic scenario

Factor Measure / Incidence Result Socio-economic Continuing urbanization Increasing population rate in city centers Relatively low investments into public Decreasing quality of public transport services transportation offered Concentration on freight transport and No investments into public transport infrastructure infrastructure investments at the national level and thus further decline of infrastructure maintenance and quality Positive labor market development and Further increasing motorization rate, when cars decreasing unemployment rate become more affordable for more people, higher disposable incomes Consistent GDP development Possibility for both affordability of private transportation as well as affordability of better quality public transport services Political/ Maintain current public transport organizational Continuing decentralization of the public transport organizational structures system and missing coordination of various services and modes Maintain current public transport funding Further deterioration of infrastructure and services mechanisms and decline in the face of rising demand Limited/very restricted and restrictive open- Missing incentives for quality assurance; no market procurement of public transport services incentive for harmonization of ticketing and fares No central, dedicated and regionally differentiated Further decline of infrastructure and services in funding scheme for public transport infrastructure the light of rising staff labor costs Environmental Legal implementation of Euro–4 standards for Continuing high number of old vehicles; no private vehicles without implementation measures control mechanisms and city-access restrictions for older vehicles Increase in CO2 and particulate matter emissions, Increase in respiratory diseases and fatalities; especially in city centers increasing air pollution No introduction of environmental zones or similar Increasing air pollution and traffic congestion, car-reducing push measures decreasing urban quality of life Transport/traffic- Continuing development of rising motorization Increasing traffic congestion and air pollution related rate Continuing depreciation of public transport Decrease in quality and reliability of public vehicles transport services, diminished P/T fleets Closed public transport services due to safety Decrease in availability and perceived reliability of issues with transport infrastructure public transport services Cheap or free parking in city centers Promotes private car transportation rather than public transportation; missed opportunity to generate additional revenue High traffic congestion Increasing air pollution and reduction of life quality in cities Missing Park + Ride systems Missing promotion of public transport systems, persisting inner-city parking problems Missing promotion of alternative means of Increased private transportation; safety issues for transportation (walking, cycling) pedestrians; increasing air pollution

80 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 8.4 SCENARIO 2: TREND SCENARIO: REALISTIC CHANGES UNDER CAST PROJECT OBJECTIVES

Table 8-3: Scenario 2: Trend scenario

Increase in CO2 emissions, especially in city Increasing air pollution, decreasing quality of life centers Pre-define environmental zones and roll-out Decrease car domination in city centers strategy for later implementation Transport-related Continuing development of motorization rate Increasing risk of traffic congestion and air pollution as well as accidents Promotion of investments and sustainable Provide transport operators with investments and maintenance procedures in order to reduce incentives to properly maintain vehicles and to accelerated depreciation of public transport provide good quality services vehicles Prepare workshop and maintenance strategy Provide incentive for vehicle maintenance of transport operators to use Prepare a parking strategy in city centers and Enable inhabitants to use their car up to a transfer P+R strategy on the outskirts station, combine parking and ticketing tariff to generate additional revenue

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 81 8.5 SCENARIO 3: OPTIMISTIC SCENARIO

Table 8-4: Scenario 3: Optimistic scenario

Factor Measure / Incidence Result Socio-economic Continuing urbanization Change of demographic allocation in cities; increasing population in city centers and at outskirts; this requires commuting and is an opportunity for public transport services and park + ride facilities High investments into urban public transport Improvement of current public transport service infrastructure and services quality and infrastructure; re-introduction of lines and services that are currently on hold Positive labor market and income level Further increasing motorization rate, when cars development become more affordable for more people; at the same time more income availability, however, urban population lives increasingly car-free or uses carsharing Positive GDP development Possibility for both affordability of private transportation as well as affordability of better quality public transport services Political/ Implementation of a public transport authority Ensures financing and coordinated organization organizational in each larger Kazakh city of public transport services; improvement of public transport services; integrated tariff system and integrated timetables; high-quality transport services and passenger information systems Clearly defined policies for reliable and Reliable financing sources over a period of at least consistent public transport funding on national, 10 years allows for coordinated, substantial and regional and local level sustainable transport services, funds directed at interconnected comprehensive network development Implementation of an integrated public Integration of all transport modes, internally and transport planning system in every city externally, provides good quality services with integrated passenger information and through ticketing system Implementation of revised policies regarding Transparent competition between bus operators and procurement of transport services transparent tendering increases quality of services Definition of quality management criteria Increased quality of services regarding transport regarding public transport services quality, operational quality, interconnections, information and ticketing; increased use of public transport services and reduction of motorization rate, especially in city centers Environmental Practical implementation of Euro-4 standards Reduction of motorization rate, especially in city for private vehicles, long-term strategy for centers; renewal/upgrade of private car fleet, implementation of higher Euro norms extension of norm requirements to commercial vehicles in city center Clearly defined environmental zones in city Reduction of motorization rate, especially in city centers centers; increased use of P/T services; use of alternative means of transportation; improved air quality Prohibition of Diesel vehicles in city centers Reduction of motorization rate, especially in city (except public transportation) centers; improved air quality Introduction and implementation of pedestrian Improved air quality and noise reduction; increased zones in city centers quality of life Introduction of penalties for the use of improper Makes motorization less attractive and increases use gas (quality-wise) of public transport services; improved air quality and

reduction of CO2 emissions

82 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Transport-related Implementation of incentives for public For instance through an attractive ticketing system, transport use in order to reduce motorization clever marketing, high quality transport offer, rate passenger information systems  leads to high attractiveness of public transport services Fixed and guaranteed annual investments in Improved quality of vehicles and their equipment; order to reduce accelerated depreciation of increased quality of services and thus increased public transport vehicles transport demand Implementation of a workshop and Improved quality of vehicles and their equipment; maintenance strategy for each P/T transport increased quality of services and thus increased authority and private operator transport demand Implemented parking strategy in city centers Decrease of motorization in the city center and and P+R strategy at important P/T change increased use of commuting system through Park stations + Ride facilities; it is also an optimal reaction to increasing urbanization rates in the city and at outskirts Introduction and implementation of a Indirect subsidizing of public transport services congestion fee for car owners entering city center with private vehicles Introduction of high-occupancy vehicle (HOV) Incentive for reducing private car use for individual lanes for passengers travelling in shared trips, reduced congestion, use of dedicated lanes private cars allows for shorter travel times

In the following chapter, policy-making and the status quo of urban public transport services in Kazakhstan will be analyzed using the SWOT analysis technique. Subsequently and building upon this, the scenario analysis will be picked up in the Strategic Choice Analysis (see Chapter 10), where policies are rated and assessed regarding their effect and for preferred strategic choice selection.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 83 SWOT ANALYSIS 9

• Strong control of governmental bodies and institu- 9.1 METHODOLOGICAL APPROACH tions by the executive branch. Building on the results of the previous analytical phas- • Missing procurement standards or not in line with es of the project, these were then subjected to a clas- international standards. sical SWOT analysis showing strengths, weaknesses, • Past decades have seen privatization processes in opportunities, and threats of policy developments for urban bus sector devoid of any subsequent suffi- urban sustainable mobility in Kazakh cities and Ka- cient regulation. zakhstan in general. • Bus licenses are granted, however, quality stand- The SWOT analysis covers the following five topics: ards are not enforced. 1. General policy development in Kazakhstan, • Local Governments have no power and authority to apply special requirements concerning local 2. Public Transport Service Contracts, aspects. For example, methodology of tariff cal- 3. Public transport plans and strategies, culation is unified for whole territory of Kazakh- stan. 4. Public Transport Financing, Organization & Capac- ity Building, • National level legislation in Kazakhstan applies to all cities at the territory of Kazakhstan. Special 5. Environment & Emissions, legislative acts might be applied only to two cities 6. Transport and Infrastructure developments. – Astana and Almaty. Other cities comply without exception with national legislation. • Municipal authorities are not entitled to change the 9.2 ANALYSIS PER CATEGORY rules or specify special procedures. Their role in the process is to follow detailed guidance issued 9.2.1 General policy development in by national level government. Kazakhstan External Opportunities • World Bank lending activities include policy discus- Internal Strengths sions and analytic and advisory activities. • 2006-founded State Commission for the “Devel- • Regulatory improvements have been encouraged opment of Democratic Reforms” aims at giving through external funding agencies in the past (e.g. more legislative powers to regional and local au- Almaty Bus Sector Reform in 2011 by Czech Re- thorities and at promoting local self-government public ODA TC Fund). • Administrative reforms set on agenda of the na- • Kazakhstan has an existing Law on Concessions, tional strategy “Kazakhstan 2030” enacted in 2006 and amended in 2008, to support • New constitution as of March 2017 transferring PPP development. powers from the president to the parliament • Grants from international organizations. • Level of details in State regulations for public transportation External Threats • Funding of infrastructure/rolling stock by interna- Internal Weakness tional bodies does not necessarily lead to better • High degree of centralization regarding policy- and urban transport systems if efforts are uncoordinat- decision-making on the political level. ed (timetabling, maintenance).

84 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN • Law on concessions not comprehensive, gaps de- 9.2.3 Public transport plans and strategies ter private sector investment in PPPs • No concession in the area is available Internal Strengths • No dedicated authority on national and local levels • Kazakhstan Government set up an overall Trans- • Associations growth is very slow. port Strategy for the Republic (2006-2015) • Kazakhstan has set up a long-term strategy for development up to 2030 and deals with transporta- 9.2.2 Proposed Public Transport Service tion as an aspect of importance for infrastructure • City Master Plans (e.g. Astana) exist and do cover Contracts transport The template for the public transport services con- • CAST Project for Almaty constitutes an encourag- tract (PSC), developed, approved and issued by the ing step to assess and develop public transport as Ministry, includes only those requirements, terms and an integral part of urban development conditions, which are stipulated by the currently valid • Orientation on implementing more variable differ- version of Kazakhstani legislation. The table below entiated tariff demonstrates results of SWOT analysis for existing • New template of the contract for public transport template of the contract: services

Internal Strengths Internal Weakness • Compliance with Kazakh laws and regulations. • National level plans and strategies do not explicitly deal with urban public transportation, making it un- Internal Weakness clear how much – if any at all – of the planned trans- • Simplified terms and conditions; port sector investments are earmarked for urban use • General roles and responsibilities of the contrac- • Long term strategic visions outlined, however, no tor; clear indication of how these (a) will pan out by means of clear implementation goals and (b) this • Stipulated general terms cannot be optimized; should happen in the public transport sector • Subsidy for routes, which are the subject of the • City Master Plans tend to be focused on the built contact, shall be specified in the contract by date environment, e.g. roads, an integrative approach of signature. In case a route is newly developed, is not commonly adopted Akimat cannot evaluate whether the route will be • Differentiated tariff calculation methodology is not commercially unprofitable for an operator. The de- available yet. cision regarding route profitability/ unprofitability, which is the subject of subsidy, shall be made by local administration. External Opportunities • Adaptation and adoption of Transit-oriented Devel- • Fleet renovation terms look very weak. They do opment (TOD) in cities is an option for Kazakh cit- not provide different calculation model based on a ies too to reduce driving in inner-cities by encour- production date of vehicles. aging mixed use developments; the CAST project has translated the TOD-standard into Russian External Opportunities • Kazakhstani Civil Code authorizes Akimat to extend External Threats terms and conditions of the template approved by • Overarching structures incorporating urban public the Government of Kazakhstan. It means the con- transport into urban planning/design without spe- tract might be extended with additional require- cific appreciation of the requirements needed to ments and conditions, which do not contradict with ensure appropriate planning procedures and tools general terms specified in the template.

External Threats 9.2.4 Public transport Financing, • In case a tariff is the subject of adjustment, Aki- Organization and Capacity Building mat shall proceed with contract’s amendment and specify new tariff therein. Internal Strengths • In case the route is the subject of adjustment, Ka- • First steps towards introducing Public Transport zakh law does not specify the procedure of con- Authorities in Almaty and Astana tract amendment indicating adjusted route. Akimat • UITP has set up offices in Astana shall exclude the route from the contract and pro- • Institute for Transportation and Development Policy ceed with the new tender for adjusted route. has been active in Kazakhstan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 85 • Intentional efforts to set up Public Service Con- Internal Weakness tracts (PSC) evident in Almaty. • Legislation gives Kazhydromet (hydromoteorolog- • Outlined tender procedures. ical services) monopoly privileges to publicizing • Open and transparent competition of bids. analyses of air quality, hindering the process for in- • Subsidy permitted. novative public awareness campaigns at dissemi- nating information Internal Weakness External Opportunities • Underdeveloped system of state support • In Almaty 80% of pollution is deemed to be vehi- • programs, which in return also affects negatively cle-related; with appropriate restrictions on older the potential of private sector companies. vehicles entering the city and incentives for clean • Insufficient cooperating activities between Aki- urban transport emissions can be reduced. mat-supported public transport companies and private transport companies. External Threats • Underdeveloped regulation of (quasi)state-owned • Continuous pollution from industrial production companies. cannot be curbed by transport policies aimed at • Process of subsidy allocation is time consuming mitigating GHG, smog in Almaty may remain a cen- and quite complicated. tral environmental problem. • Subsidy allocation tied to route not specific pas- • Use of low-grade gas in vehicles increases during senger groups, therefore not scalable based on economic downturns. This type of gas is environ- actually transported passenger volumes. mentally even more harmful.

External Opportunities 9.2.6 Transport and Infrastructure • International funding/lending options existent and already active in some cities to support an integrat- developments ed approach to urban transport. Internal Strengths • Government supportive of PPP approach (PPP • Investment into natural compressed gas (CNG) Center for development and assessment of pro- busses in Almaty, Shymkent and Kyzylorda jects exists in Astana). • Efforts to instate cycle lanes in Almaty • No limited access to a tender. Potential bidders • LRT project in Astana and Almaty shall fit the criteria and then participate in a tender. No matter what type of entity a bidder has. • New low-floor trams and track renewal for Pavlodar (EBRD loan, government funding). External Threats Internal Weakness • Unequal distribution of economic strength, indus- • Divergence between rolling vehicle modernization trialization and GDP growth in Kazakh cities leads and maintenance infrastructure and procedures to unequal regional funding capacities. With no re- leads to rapid depreciation of buses. distribution mechanism in place, economically de- prived regions cannot operate urban public trans- • Transport infrastructure developments generally port systems adequately. focused at the national level, i.e. road/port construction to ensure Kazakhstan reaches global • Since the post-Soviet era, national investments in economic competitiveness with appropriate trans- urban centers have primarily focused on Almaty port infrastructure in place  focus on transit trans- and Astana (up to 80% of annual fiscal transfers port infrastructure (4 corridors). from central government) creating an imbalance in urban development90 External Opportunities • Strong financial and capacity building support from 9.2.5 Environmental issues international organizations, such as EBRD, ADB and UNDP. Internal Strengths • 80% of EBRD’s investments into Kazakhstan are • Public awareness about environmental issues is transport-related; 73 Million euro have been in- increasing, efforts to educate the public are appar- vested in Urban Transportation up to 2015.92 ent, i.e. Almaty Urban Air (AUA) initiative to monitor air quality. External Threats • Urban transport response to mitigate pollution have • Government funding for transport to remain pri- included the introduction of CNG-busses (Almaty, marily directed at national projects (airport, ports, Shymkent) and dedicated bus lanes (Almaty)91 roads, railways).

86 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN STRATEGIC CHOICE ANALYSIS 10

To inform strategic choice making, an initial step was expected impacts and the effort to design and execute to rate 12 envisaged policy measures for Kazakh a given policy aids decision-making in terms of cities in general and Almaty in particular. These policy prioritizing/phasing policy implementation. Strategic measures also mirror the eight measures as identified choice is, thus, always also informed by a pragmatic by the CAST project and extend upon these to include approach. additional policy fields as deemed important by the Consultant. 10.1.1 Policy rating 10.1 METHODOLOGICAL APPROACH P1 through P12 represent policies. The key question asked in the rating exercise was: “To what degree and Following an initial policy rating in terms of their in which way would a respective policy influence the anticipated direct as well as indirect impact on a range development criteria?” The assessment is listed in the of sub-criteria relating to issues of: matrix in Table 10 3 and differentiates between the • sustainable economic development anticipated impact magnitude (no impact through to • environmental improvement significant impact) as well as the respective policy’s direct or indirect effects. • improving the urban transportation sector and urban mobility • improving public transport organization and capacities 90. Asian Development Bank (ADB) Sector Assessment; Country an initial clustering was undertaken to indicate which Partnership Strategy: Kazakhstan 2012–2016 combination of policies may be most suitable to 91. Source: Turbeboka, A (2016) 35 Green Buses Introduced in achieve enhancements in urban public transportation Almaty, Astana Times 22. June 2016 levels and organization. Balancing the desired and 92. EBRD (2015)

Figure 10-1: Average policy effect rating across all impact areas P.9 Development of an integrated ticketing and tariff system P.3 Development of a Parking Management System P.6 Promotion of low emission zones P.4 Development of a traffic management system / control center P.5 Promotion of soft transport modes, such as cycling P.10 Development of a public transport financing system P.11 Implementation of a dedicated Public Transport Authority P.12 Implementation of a Public Procurement System P.7 Integration of the suburban transport network with City P.1 Improvement of public transport service levels P.2 Development of an integrated public transport system P.8 Development of road-based transport in a sustainable manner

0 0,5 1,0 1,5 2,0 2,5 3,0

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 87 Average ratings across all four main impact areas Table 10 1) shows which area may benefit most from (socio-economic development, environmental such regulation. It emerges that a majority of policies improvement, P/T service and organizational have the potential to address the improvement of improvement) show that – unsurprisingly – the top organizational and capacity-related issues in public three policies with the most cross-cutting ability are transport. ones with an overarching rather than specific aim: Overall it must be noted that lower average ratings P.8 Development of road-based transport in a do not equate to an abolishment of such policy sustainable manner approaches at the early stages of discussion. Far more P.2 Development of an integrated public transport this ranking exercise serves to highlight that a multi- system tiered approach must be taken to policy prioritization and clustering. Policies receiving a lower overall P.1 Improvement of public transport service levels. ranking are (a) narrower in their scope and (b) thus The impact per suggested policy does, however, vary more targeted at improving clearly defined sub-areas between the four impact areas. The highest average within public transportation (i.e. parking management, impact rating per policy (green shaded boxes in integrated ticketing/tariffs).

Table 10-1: Detailed average impact ratings per policy (0 = No impact; 4 = significant impact)

Improving Improving Sustainable the urban public Environmental Policy Economic transportation transport improvement Development sector and organization urban mobility and capacities P.1 Improving public transport service levels 2,29 2,33 2,88 2,33 P.2 Development of an integrated public transport 3,00 1,33 2,50 3,67 system P.3 Development of a Parking Management System 1,43 1,33 0,75 1,33 P.4 Development of a traffic management system / 1,57 1,33 1,38 0,67 control center P.5 Promotion of soft transport modes, such as 0,71 1,67 1,50 1,33 cycling P.6 Promotion of low emission zones 1,43 2,67 0,75 0,00 P.7 Integrate the suburban transport network with 3,14 0,67 1,63 3,00 City P.8 Develop road-based transport in a sustainable 2,00 3,00 3,13 3,33 manner P.9 Develop an integrated ticketing and tariff system 0,14 0,00 0,50 1,67 P.10 Development of a public transport financing 1,71 0,00 1,00 4,00 system P.11 Implementation of a dedicated Public 0,86 1,00 2,25 3,67 Transport Authority P.12 Implementation of a Public Procurement 1,00 2,00 1,38 4,00 System

88 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 10.1.2 Policy clustering The policies analyzed can be clustered according to their intentional impact in the following areas:

Table 10-2: Recommended policy clustering according to primary intention

Impact intention P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 Financial Organizational Environmental Operational (P/T) Modifying (Car)

Table 10-3: Policy Impact Rating - -

Criteria Impact Areas P.1 Improving public transport service levels P.2 Development of an integrated public transport system P.3 Development of a Parking Management System of a traffic man Development P.4 center agement system / control P.5 Promotion of soft transport modes, such as cycling P.6 Promotion of low emission zones P.7 Integrate the suburban transport network with City P.8 Develop road-based transport in a sustainable manner P.9 Develop an integrated ticketing and tariff system P.10 Development of a public transport financing system Implementation of a dedicat P.11 Authority ed Public Transport P.12 Implementation of a Public Procurement System City-level GDP 1 2 1 1 0 0 2 1 0 1 0 1 Employment 3 3 1 1 0 0 3 0 0 0 0 1 Household Income 0 1 0 0 0 0 3 1 0 0 0 0 Industry / Services 3 3 3 2 0 2 3 3 0 3 0 1 Urbanization 3 4 2 1 1 2 4 3 0 2 0 0 Development Smart Growth 2 4 2 3 2 4 4 4 0 2 2 1 Sustainable Econmic Public Transport Investments 4 4 1 3 2 2 3 2 1 4 4 3 - - Air Pollution (CO2 emissions) 3 2 2 3 2 2 1 3 0 0 1 1 Urban green space 0 0 2 1 3 2 1 3 0 0 1 1

ment Car Filters & Application of EU 4 2 0 0 0 4 0 3 0 0 1 4 tal improve Environmen standards Motorization rate 1 2 0 0 1 1 1 2 0 0 1 0 Overall transport network 4 4 0 4 0 0 4 4 0 3 4 1 P+R facilities 3 4 4 0 1 2 3 3 0 0 2 0 Ticketing & Fares 3 4 0 0 0 0 4 3 4 4 4 2 Bicycle and Pedestrian feeder 2 3 0 0 4 0 0 3 0 0 1 0 systems Alternative transport modes 3 2 0 3 4 1 0 3 0 0 2 2 Safety and Security 4 1 2 4 2 0 1 4 0 0 2 3 sector and urban mobility Alternative propulsion systems for

Improving the urban transportation 3 0 0 0 0 2 0 3 0 1 2 3 bus systems Existence of a Public Transport 1 4 0 0 1 0 3 4 2 4 4 4 Authority Public Transport Funding 3 3 1 2 2 0 3 3 2 4 3 4 Schemes Improving organization and capacities public transport Contracting and Concessions 3 4 3 0 1 0 3 3 1 4 4 4 0 – Policy would have no or unknown impact Policies w/ direct impact on Criteria 1 – Policy would have minimal impact 2 – Policy would have moderate impact Policies w/ indirect impact on Criteria 3 – Policy would have high impact Policies w/ no impact on Criteria 4 – Policy would have significant impact

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 89 From this it emerges that to address organizational matters. It is the trend scenario under assumption that and operational issues in public transport, the number already existent plans and initiatives are continued. and diversity of suitable policies is highest. Clustering Scenario 2 currently provides the most realistic option also indicates that it is less advisable to plan and initiate for changes. This trend scenario also creates the individual policies as their impact as stand-alone basis for possibly even further changes in order to approaches are far weaker than the introduction of a set implement the optimistic scenario 3. of policies grouped together to form a policy package. Scenario 3 is the highly optimistic that could derive once measures scenario 2 would be fulfilled entirely. 10.1.3 Scenario Selection It aims at creating a sustainable, modern and fully integrated public transport system with strong financial In Scenario 1, it is expected that the current trends will support from national, regional and local levels. remain the same if no concrete and lasting changes towards sustainable growth and improvement of public transport infrastructure and services are provided and 10.2 POLICY IMPLEMENTATION implemented. It is also referred to as the pessimistic STRATEGY scenario because a system collapse would be seen as the “worst case scenario”. The following figure illustrates the packaging of suggested measures and policies. Scenario 2 anticipates significant changes in terms of implementing public transport policies for In order to implement appropriate measures to organizational, financial, environmental and planning reach the long-term goals of Scenario 2, a policy

Figure 10-2: Policy Implementation Strategy

Sustainable Transport strategies Policy programme policy

PP1 PP2 PP8 PP12 PP7 PP11 PP3 PP4 Policy clusters PP10 -- PP5 PP6 PP9 --

PP1 PP2 PP3 PP4 PP5 PP6 PP7 PP8 PP10 PP11 PP12 Traffic Parking PP9 Low City Long Bus Tram Metro Pedestrian Cycling Management management P&R Land use emission logistic distance Policy packages меропри- меропри- меропри- меропри- меропри- меропри- меропри- меропри- меропри- меропри- меропри- меропри- ятие ятие ятие ятие ятие ятие ятие ятие ятие ятие ятие ятие ------

List of policy measures

Figure 10-3: Step-by-step approach to policy implementation

A.) PUBLIC TRANSPORT FINANCING

B.) PUBLIC TRANSPORT ORGNIZATION

C.) ENVIRONMENTAL ISSUES

D.) PUBLIC TRANSPORT OPERATIONS

E.) P/T SYTEM TRANSFORMATION

90 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN implementation approach in five prioritized clusters 10.2.1 Policy cluster A: Public transport are suggested, which are presented in the following sub-chapters. A step-by-step approach is suggested: Funding and Financing In order to implement appropriate measures to Contrary to many other countries around the world reach the long-term goals of Scenario 2, a policy the national government of Kazakhstan does currently implementation approach in five prioritized clusters not contribute financially to urban public transport. are suggested, which are presented in the following Therefore the introduction of a national law allocating a sub-chapters. A step-by-step approach is suggested: budget to urban public transportation – acknowledging As the following sub-chapters indicate, each governmental its importance as a public and inevitably loss-making level has a different involvement in the policy-making service – would greatly support planning reliability and process for a range of listed potential policies. Policies hence operational stability. highlighted in green already exist in Kazakhstan.

Table 10-4: Suggestions for financial policy-making

Policy for … National Level Regional Level Local Level The Introduction of a national National law No involvement Collection of taxes tax tied to car usage, such as Within the law describe that tax Funding at municipality fuel tax, or collection and allocation to public for allocation to public car ownership tax, or transport authority takes place on transport authority local level congestion charge The introduction of a national National law Receives budget through Receives funding law allocating budget for Define a lump sum for each year in national law for local public urban public transportation combination with a yearly change Prepare regional law to transportation rate define allocation of budget Define the modality of allocation to municipalities/cities, for per region, e.g. by population and instance by population and weighted GDP weighted GDP The introduction of financing No involvement Prepare a regional law Receives funding for for school transportation to allocate subsidies to local schools municipalities Define within the law the mode of allocation, for instance by number of students The introduction of National law Adoption of national law infrastructure financing for To define the amount of funding possibly by defining the roads and railways and financing for road and railway means of distributing funding infrastructure financing within the region 10.2.2 Policy cluster B: Public transport regional level. Here, a law for public transport organization defines that urban transportation lies in the hands of the organization municipalities; municipalities decide whether to be the A further central issue to be defined in terms of policies, PTA themselves or outsourcing this task to a municipal- resolutions and decrees are matters concerning the owned PTA. The possible organizational forms need to organization of public transportation. Experiences from be clearly stated within the Law. At the same time, the law European countries shows that this is best done at the also needs to refer to respective national and regional Table 10-5: Suggestions of organizational policy-making

Policy for … National Level Regional Level Local Level Defining the allocation of No involvement Regional Law for Public Decree for the responsibilities for public Transport Organization implementation of the transport organization Law for Public Transport Organization Defining the organization of No involvement Regional Law for School Decree for the school transport services Transport Services implementation of School Transport Services

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 91 laws regarding financing of urban public transportation. organization (for example the municipality as PTA or possibility to create municipality-owned PTA in On the municipal / city level, this law needs to be the form of a joint stock company / LLP) adopted through a decree that describes the chosen organizational form and its implications in more detail. • clear definition of tasks of the PTA Depending on the applicability of this issue, it is • clear definition of organizing school transportation also advised to possibly define a regional law for services (if applicable). public school transportation services. In Germany, for instance, this is an important issue as school transportation in rural areas is seen as part of the 10.2.3 Policy cluster C: Environmental municipal responsibility for the schooling system issues in general and is therefore organized and financed separately. The regional law defines the allocation of Policies on environmental issues generally have an responsibilities for organizing school transportation indirect effect on public transportation. Legislative and also refers to respective national and regional proposals aim at: laws regarding financing of school transportation. • reducing motorized transportation in city centers, Goals to be achieved by these policies include: • improving technical standards for emissions in • clear definition of responsibilities for urban public motorized vehicles, transport organization • defining standards for sustainable forms of • clear definition of the forms of public transport transportation.

Table 10-6: Suggestions for environmental policy-making

Policy for … National Level Regional Level Local Level Defining environmental / No involvement Regional Law to require municipalities to Pass a decree to adopt the green zones pass regulation to define environmental regional law zones Clearly define the criteria of an environmental zone and their control mechanisms Prohibiting private- No involvement Regional Law to prohibit diesel- Decree to implement the owned Diesel vehicles in powered private cars in city centers prohibition city centers Define areas of city centers for prohibition Adopting Euro-4 (or National Law has been Decree on implementing and Implementing the Decree higher) standards legally adopted in 2016 controlling Euro-4 standards Overall Environmental Adoption of the Provide a regional environmental plan Prepare a local Code Environmental Code in as guideline for sustainability and environmental plan 2007 improvement of air quality

92 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 10.2.4 Policy Cluster D: Public Transport national level for overall legislation applying to motorized transportation and safety and security as well as on the Operations local level, where national legislation is adopted and Policies and regulations concerning the operation implemented within the responsibility and authority of of public transport services are mostly prepared on the PTA. Table 10-7: Suggestions for operational policy-making

Policy for … National Level Regional Level Local Level Defining safety and Law on Safety and Security No involvement Decree to implement the security in Public Standards to be applied by Public national Law on Safety and Transportation Transport Operators Security Relevance for procurement of public transport services Motorized National Law on motorized No involvement Decree to implement the transportation transportation, 4/7/2003 national law Relevance for procurement of public transport services Technical Standards Resolution of the Government of the No involvement Decree to adopt the resolution of Public Transport Republic of Kazakhstan of February and implement it technically on Vehicles 28, 2008 No. 203 On approval of the local level Rules for the Technical Operation of Motor Vehicles

10.2.5 Policy Cluster E: Modifying issues • providing means for rapid transportation with public transport modes, for instance by providing in Public Transport priority bus lanes or dedicated signaling systems for public transportation; This policy cluster can be addressed when the more • encouraging commuting, the use of park + ride pressing issues of public transport financing and systems and a parking strategy; and organization have been successfully tackled. • encouraging alternative means of transportation in • Policies in this area primarily aim at: city centers..

Table 10-8: Suggestions for further policy-making efforts

Policy for … National Level Regional Level Local Level Defining parking rates in public No involvement No involvement Decree for the definition of and private parking spaces parking rules and parking fees in city centers Road Layout Regulations National laws on technical No involvement Adoption of national laws and safety requirements for Introduce requirements for road infrastructure the implementation of cycling routes Provision of a parking strategy No involvement No involvement Preparation of a parking strategy

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 93 CONCLUDING REMARKS 11

transport, where PT implementation and organization/ 11.1 GENERAL management will be delegated to the local The report presents the results of the comprehensive governments. No detailed regulations and directives analysis as well as prepared recommendations for are needed. Experience from European countries reforming public transport sector and the relevant shows that this is best done on regional level. Here, a policy based on the international experience, current law for public transport organization defines that urban practices in Kazakhstan and possible relevant transportation lies in the hands of the municipalities; solutions. Given recommendations are directed to municipalities decide whether to be the PTA improve legal, regulatory, institutional frameworks themselves or outsourcing this task to a municipal- and capacity building to promote sustainable public owned PTA. The possible organizational forms need transport and reduce transport related emissions in to be clearly stated within the Law. Kazakhstan. Beside a new legislation should also give a freedom to the local authorities to: 1) set tariffs and 2) types of Having reviewed existing and planned legislation in tickets. Kazakhstan regarding public transport organization and financing, it can be concluded that current Depending on the applicability of this issue, it is also legal framework for public transport has a number advised to possibly define a regional law for public of shortcomings and therefore a new legislation is school transportation services. The regional law required. defines the allocation of responsibilities for organizing school transportation and also refers to respective In order to implement the recommendation on national and regional laws regarding financing of establishing dedicated public transport authority school transportation. under Akimat, at least the following laws and Decrees should be considered as the subject of amendment: In terms of PSC the new legislation should legally • The Law # 156-XIII dated September 21, 1994 “On recognize this documents as the main one in relationships between transport authority and private transport in the Republic of Kazakhstan” (amended operator, which will also allow “price” award criteria. on 13 June 2017); In additional such contracts should set quantity and • The Law #476-II dated July 4, 2003 “On motor quality of the service to the delivered under agreed vehicles” (amended on 5 May 2017); service. • The Law #148-II dated January 23, 2001 «On local The current legislation does not allow to use gross or public administration and self-government» net contracts, however it is understood that Almaty • Regulations of Municipal Public Institution “Public is interested in introducing Gross contracts in public transport and motorways Department” of Akimat transport. Therefore, the new legislation should of Almaty city, approved by the Decree #2/266 include the solutions for future Gross contracts of Akimat of Almaty city dated June 10,2016 implementation. (Specified documents is applicable to Almaty It is recommended to address public transport only). The main subject to change such type of financing and funding in terms of policies on national, document is to authorize Akimat department to regional and local level to create a close link between create new treasury enterprise. the provision of subsidies and the implementation It would be required for National Government to of certain requirements to the transport company. set a supportive legal framework for urban public The following guidelines should be considered when

94 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN establishing the level of subsidies for public transport: 3. The improvement of the quality of vehicle inspection, The extent of subsidy should take into consideration 4. The improvement of sustainable urban public the source of funds for the subsidy, income from transportation, enabling multi-modal transportation the public transport, and the welfare weightage that (such as Park+Ride, Bike+Ride). policymakers attribute to different income classes. In terms of public transport financing and organization, In order to receive subsidy, it is important to maintain Kazakhstan currently shows an underdeveloped a certain percentage of fare box recovery for the system of state support on all administrative levels. remaining cost. National government of Kazakhstan is not financially contributing to urban public transport. The government Scientific approach to fare setting: While subsidy is imposing a lot of regulatory restrictions on PT. The is a political decision, it is important to calculate the principle “who pays, has a say, who nothing pays has technical and public costs of a trip before deciding the no say” should be applied. subsidy. Based on this, a public transport company can determine the gap between the technical and Currently investments into urban transportation have public fares and apply for subsidies as required. been promoted by international organizations such as Subsidies only for targeted groups: There is a need UNDP, EBRD, ADB and the World Bank. These led to to target specific user groups that need subsidies for the acquisition of CNG busses in Almaty, Shymkent public transport use. User groups such as the elderly and Kyzylorda as well as LRT projects in Almaty, people, pupils, students and persons with disabilities Astana and Pavlodar. A continuous cooperation are largely dependent on public transport. with international expertise is advised. At the same time, a strong divergence between rolling vehicle While subsidies are in place, it is important to improve modernization and maintenance infrastructure and the level of service. This is to ensure that the public procedures leads has been identified. This leads to transport system is efficient and retains that part of rapid depreciation of buses. It is therefore necessary passengers, who do not apply for any subsidy and fund to prepare a maintenance and workshop programme the use of public transport from their own pockets. for public transport vehicles and define continuous Policies on environmental issues generally have an yearly investments into rolling stock maintenance. indirect effect on public transportation. Legislative In additional, based on the information obtained by the proposal aim at Consultants, SWOT analysis and benchmarking results • reducing motorized transportation in city centers; of the all main directions (policy, PT organization, • improving technical standards for emissions in tariffs and ticketing system, legislation, economics motorized vehicles; and etc.), as the best solution due to the Kazakhstan country needs the following is recommended: • defining standards for sustainable forms of transportation. Discuss the measures for subsidies and its possibilities to finance the public transport (review parking The awareness of environmental issues and air schemes, toll roads in the city, etc). pollution has been strongly increasing especially in Almaty, Astana, Shymkent and Kyzylorda. In Almaty, Introduce constraints and incentives to improve the the Almaty Urban Air initiative has been introduced to motorization level in the Kazakhstan cities. monitor air quality. In Almaty, Shymkent and Kyzylorda, Review the tariff policy and ticketing system. The international organizations financed projects to tariffs could be raised according to the GDP per exchange Diesel-driven busses by environmentally capita indicators and develop a more differentiated friendly CNG busses. approach. Kazakhstan has already implemented additional Ensure the public involvement in using bicycle as legislation and planning concerning environmental alternative mode of transportation. The appropriate issues and air pollution: adoption of the Environmental infrastructure should be developed (beside: include Code in 2007, the Concept of Transition of the Republic bicycle data into city transport model, provide a of Kazakhstan to Sustainable Development for 2007– demand of this type of transport, create a clear 2024 as well as the Conception of Environmental priorities for transport, provide a clear hierarchy of the Safety for 2004–2015. In 2016 the Euro-4 standard routes/ complex network structure and etc.). was legally adopted. It is now of utmost importance to check for newest Euro standards in new vehicles Empower local authorities to implement public and find measures to keep older vehicles out of the transport strategies and adopt national policies city center, for instance by implementing a Park + Ride through decrees and resolutions. strategy. Key factors for emission reduction are: Prepare the national and regional legislation regarding 1. The improvement of fuel quality, public transport financing issues. 2. The Implementation of governmental control Enable local authorities to deliberately allocate systems for Euro-standards, national/regional funding.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 95 Provide transparent means of public transport funding Implement a dedicated public transport authority in through government subsidies. each city (above 200,000 inhabitants). Put in place legislation on government subsidies Introduce the green zones and limitations for the cars for a public transport funding scheme beyond the with high level of carbon emissions. Introduce the identification and definition of socially important efficient transport modes of lower carbon intensity and routes; increased fuel efficiency of a modernized bus fleet. Differentiate subsidy criteria and devise a model that Beside the controlling system should be implemented. is not primarily tied to a specific route but to specific As the final outcome to improve the current situation passenger groups (elderly, disabled, children). in public transport it was recommended to implement Intensively consider embracing a structured the best scenario 2. In preparation of a policy contractual set up between funding bodies and public development process in order to reach the goals transport operators and ensure the definition of the of selected Scenario 2, a policy clustering was policies required. suggested. A SWOT analysis of current practices in Kazakhstan concerning public transport organization, Discuss options of fiscal equalization schemes by financing, planning, policies, and environmental which taxes from more prosperous regions/cities are issues was included. The clusters were then further relocated to subsidize public transport in economically analyzed and specific policies on each governmental weaker regions of Kazakhstan. level suggested. Implementing the above given Allow for both medium- and long-term public transport recommendation it is expected that Public Transport financing and concessions in order for both public Policy will enable environment for ensuring a quality transport operators and the municipalities to make transport with the focus on its economic, social long-term plans in terms of integrated transport and environmental impacts within the framework of planning and maintenance. sustainable development principles. 11.2 KEY RECOMMENDATION SUMMARY

Table 11-1: Summary of Key recommendations Level Key Recommendation Time Frame P/T National Regional Local Operator KPI & Data Collection Set up KPI Task Force Short-term X Define performance measures and key set of indicators Short-term X X Sharing experience between Kazakh cities Long-term X X X Data transmission between vehicles and traffic control Long-term X X centre Legal Framework Elaborate a new national legislation for P/T - Law on Urban Short-/ Public Transport. National government should only set out medium-term a supportive legal framework for urban public transport; X the legislation should give freedom to local authorities to organise and operate P/T Recognise Public Service Contracts (PSC) as the main Short-/ contractual document between the local Governments and medium-term X X X X the transport operators Incorporate P/T organization at Akimat level to formalize and Medium-term strengthen long-term strategic planning and locally relevant X X X implementation Reorganise financing and funding to ascertain both Medium-term adequate subsidies and means of cross-subsidizing an X X X effectively loss-making business such as urban P/T whilst ensuring socially acceptable fares Strengthen competitive tendering to enable more efficiency Medium-term X X X for higher quality standards in P/T service offers

96 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Implement tariff differentiation: to ensure revenue Medium-term X X X maximation tailored to urban socio-economic situations Strengthen Safety and Security to ensure that vehicle and Medium-term service standards are met and adhered to throughout X X X operations Assist environmental protection to address the negative Medium-term X X X impact, P/T and urban car use have on quality of life Implement Paid Parking: to ensure additional source of Medium-term X X Akimat revenue as well as deterrent for inner-city car trips Tendering & Contracting Link KPI indicators and performance measures to PSC’s Short-/ X93 X design medium-term Define the possibility to tender on the basis of bidding “price” Short-/ X medium-term Define a monitoring system to be included in contracts Short-term X Increase responsibility of local authorities regarding contract Short-term X design Simplification of legislative framework regarding PSC’s Medium-term X X X Define procurement procedures on local level Short-term X X Ensure early-on publication and advertisement of upcoming Short-term X procurement processes Define gross and net model contracts that allow individual Short-term X X amendments Financing & PPP Decide contribution of National Government to the Medium-term operational and infrastructure costs of public transport at X regional and local level Devise a differentiated subsidy and compensation model Medium-term X X X Bundle certain financing options for capital expenditure Medium-term X X (CAPEX) or for operational expenditure (OPEX) or both Allow adjustment of P/T tariffs in shorter periods than 5 years Medium-term X X and adjust annually for inflation and wages (WI) Establish detailed risk assessment process by adequately Medium-term X X splitting of risks between the government and private parties. Ensure consultations with potential investors, development Medium-term X X partners and other financial institutions Define goals and targets for performance and measurement Medium-term X X of KPI in PSC. Set up a KPI Task Force for implementation. Medium-term X X Define a data-oriented, practical approach for establishing Medium-term X X KPI. Consider linking up with national and existing international Long-term X X X benchmarking groups. Consider introducing continuous data transmission for Long-term X X X X benchmarking.

93. National government would be involved if their authority regarding contract design would remain the same.

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98 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 22. http://www.europebycamper.com/p/country-guide_01.html 23. https://aseasyasridingabike.wordpress.com/2012/10/30/up-down-and-around-the-hierarchy-of-provision/ 24. International Technology Scanning Program (2011) Key Performance Indicators in Public-Private Partnerships; A State-of-the-Practice Report 25. JSC «Rating Agency Regional Financial Centre of Almaty» (RFCA) (2016): Automotive Industry in the Republic of Kazakhstan. 26. Kazimu News (2015): Создатели Almaty Urban Air ищут спонсоров и партнеров 27. Knox, Colin (2008): Kazakhstan: Modernising Government in the Context of Political Inertia International, in: Review of Administrative Sciences Vol 74 (3). 28. Kosow, Hannah / Gaßner, Robert (2008): Methods for future and scenario analysis. Overview, Assessment and Selection Criteria. Deutsches Institut fü r Entwicklungspolitik. 29. Lambert, James et al. (2009): Scenario-based transportation planning with involvement of metrpolitan planning organizations. Final Contract Report for Virginia Transportation Research Council. 30. Landeshauptstadt Mü nchen (2005): Nahverkehrsplan der Landeshauptstadt Mü nchen. 31. Leeds City Council (2016): Leeds Parking Supplementary Planning Document (SPD). http://www.leeds.gov. uk/residents/Pages/Leeds-Parking-SPD.aspx 32. Maack, Jonathan (n. d.): Scenario Analysis: A tool for task managers. http://siteresources.worldbank.org/ INTPSIA/Resources/490023–1121114603600/13053_scenarioanalysis.pdf 33. Medar, Olivera et al. (2010): Transport Policy Documents – Composition and substance in the case of small countries in transition. 12th WCTR in Lisbon, Portugal. 34. Mission interministérielle pour le projet métropolitain Aix-Marseille-Provence (n. d.): Mobilité. Le Livre blanc des transports métropolitains Aix-Marseille-Provence. 35. Morfeld, P et al (2014): Effectiveness of Low Emission Zones: Large Scale Analysis of Changes in Environmental NO2, NO and NOx Concentrations in 17 German Cities. 36. Münchner Verkehrs- und Tarifverbund (MVV) (2012): Regionaler Nahverkehrsplan. 2. Fortschreibung. http://www.mvv-muenchen.de/fileadmin/media/download/downloadbereich/Publikationen/documents/ Regionaler_Nahverkehrsplan_2012.pdf 37. Nicolas, J. P. et al. (n. d.): Towards Sustainable Mobility Indicators. Application to the Lyons conurbation. In: Transport Policy Vol. 10 No. 3. Subject «Urban Transport Policies», pp. 197–208. 38. Niemegeers, André (2007): About PT funding and financing. UITP Metropolis Week Seoul. http://www. stadtentwicklung.berlin.de/internationales_eu/staedte_regionen/download/projekte/metropolis_ c4/2007seoul/presentationspdf/08_UITP_Niemeggers.pdf 39. OECD (2017) Urban Policy Reviews: Kazakhstan, OECD Publishing Paris 40. OECD (2017) Urban Policy Reviews: Kazakhstan, OECD Publishing Paris 41. Ohinga, C (2011) Measuring Public Transport Performance, Lessons for Developing Cities, Sustainable Urban Transport Technical Document # 9, GIZ; BMZ 42. Oliveira da Silva Cruz, Carlos Paulo (n. d.): Organization of Metropolitan Transport Systems. Dissertation submitted to the Faculty of Engineering of the University of Porto. 43. Regulation (EC) 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70. Official Journal of the European Union, L 315/1. 44. Ries, Roland (2003): Transports urbains: quelles politiques pour demain? 45. Seifert, L et al (2012) Business Process Benchmarking, eJournal of Practical Business Research 46. Shatayeva, Lyazzat (2017): New App Helps Almaty Residents Monitor Air Quality. In: The Astana Times. http:// astanatimes.com/2017/02/new-app-helps-almaty-residents-monitor-air-quality/ 47. Simon, Bernard (2010): SYTRAL Presentation. 48. Smart Cities Infosystem: http://www.smartcities-infosystem.eu/scis-projects/demo-sites/growsmarter-site- barcelona 49. TCRP Report 88 A Guidebook for Developing a Transit Performance-Measurement System (2003) Transportation Research Board of the National Academies 50. Trompet, M, Graham, DJ (2011) A balanced approach to normalizing bus operational data for performance benchmarking purposes, Paper submitted for presentation at the (2012) Trans-portation Research Board 91st Annual Meeting

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 99 51. Ubbels, Barry et al. (2001): Alternative Ways of Funding Public Transport A Case Study Assess-ment, in: EJTIR No.1, pp. 73–89. 52. UITP 2013: Financing Public Transport. Press Kit. 53. UITP Eurasia: http://www.eurasia.uitp.org/sustainable-transport-almaty-has-be-only-ecology-friendly 54. United Nations Environmental Programme (UNEP) (2015): Air Quality Policies. https://wedocs.unep.org/ bitstream/handle/20.500.11822/17227/Kazakhstan.pdf?sequence=1&isAllowed=y 55. USAID (2006): Kazakhstan Regional Disparities: Economic Performance by Oblast. http://pdf.usaid.gov/pdf_ docs/Pnadg258.pdf 56. Verband Deutscher Verkehrsunternehmen e. V. (VDV) (2016): Zukunftsfähige ÖPNV-Finanzierung. 57. Website of the International Bus Benchmarking Group http://busbenchmarking.orgYerzakovich, Yelena (2011): City of Almaty Sustainable Transport UNDP-GEF Project 2011–2016. 58. Красовицкий, Павел (n. d.): 10 years велоактивизма–Инициативная группа Вело-Almaty. https:// alatransit.kz/sites/default/files/1_pavel_krasovickiy_velo_community_in_almaty_rus.pdf 59. OECD (2016) Boosting Kazakhstan’s Intellectual Property System for Innovation; Paris 60. Public-Private Partnerships in Transitional Nations: Policy, Governance and Praxis. Cambridge Scholars Publishing, 2017. 61. European PPP Expertise Centre (EPEC), May 2011. State Guarantees in PPPs: A Guide to Better Evaluation, Design, Implementation and Management 62. Shaimerden Chikanayev, GRATA International: Chapter 10, PPP in KAZAKHSTAN, Almaty 2015 63. Shaimerden Chikanayev, GRATA International: Chapter 10, PPP in KAZAKHSTAN, Almaty 2015 64. Yerzakovich Yelena (2011) City of Almaty Sustainable Transport UNDP-GEF Project 2011–2016. 65. Key sources consulted for GDP/capita at Kazakh urban level

City Reference Year Source for GDP per capita indicator Almaty 2013 PPP Advisory Centre, Project macroeconomic overview Astana (greater area) n/a SkyscraperCity: Two major cities of Kazakhstan: Astana und Almaty Karagandy and Aktobe 2014 OECD (2016) Boosting Kazakhstan’s National Intellectual Property System for Innovation Oral n/a no city-level data retrieved Oskemen n/a no city-level data retrieved Pavlodar 2014 Kazakhstan Strategy 2050 Semey n/a no city-level data retrieved Shymkent n/a no city-level data retrieved Taraz n/a no city-level data retrieved

100 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN ANNEXES 13

ANNEX № 1: DATA COLLECTION OVERVIEW

Lan- Author(s)/ Year/ Region/ Category/ File Type/тип Delivery Provided by/ No. Document Tile/титул guage/ автор год регион категория файла Date/дата исследован. язык 1 Report on Output 3.1 Assis- Willem 2013 English Almaty Transport; MIV; pdf 26.04.2017 UNDP tance with development of On- Browuer Parking Street Parking strategy and Or- ganizational structure 2 City of Almaty Sustainable City of Almaty 2013 English; Almaty Sustainability; pdf; URL: http:// 26.04.2017 UNDP Transport Strategy / Стратегия Kazakh Strategy; Plan- slideplayer.com/ Устойчивого Транспорта Al- ning slide/5377915/ maty city 3 Energy Efficiency in the Transport UNDP / GEF 2015 English; Kazakhstan Energy; Sus- pdf 26.04.2017 UNDP Sector in Kazakhstan: Current Kazakh tainability Status and Measures for Improve- ment / Энергоэффективность транспортного сектора Республики Казахстан: состояние и меры ее повышения 4 Ticket and Fare System Al- Guido Brug- 2016 English; Almaty Public Trans- pdf 26.04.2017 UNDP maty Public Transport / gemann Kazakh port; Ticketing Итоговый отчет Система би- yearsирования и тарификации в общественном транспорте Almaty city 5 Transport Behavior and BISAM Cen- 2016 English; Almaty Public Trans- pdf 26.04.2017 UNDP Mobility in the City of Al- tral Asia, Kazakh port; Survey maty / Транспортные Market привычки и подвижность Reserarch населения Almaty city Company 6 City of Almaty Sustainable The PEP n/a English Almaty Public Trans- ppt 10.01.2017 ETC Transport Strategy: Why do we port need innovations for the cities? 7 Kazakhstan PPP, in: The PPP Shaimerden 2016 English Kazakhstan Legal; PPP pdf 10.01.2017 ETC Law Review Chikanayev 8 City of Almaty Sustainable Yelena Yer- 2011 English Almaty Sustainability; ppt: https://www. 27.04.2017 ETC Transport: UNDP-GEF Project zakovich Strategy; Plan- unece.org/filead- 2011-2016 ning min/DAM/thepep/ en/workplan/urban/documents/ Moscow/Ms._Yer- zakovich.pdf

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 101 9 Astana Light Rail Transit Project: ADB n/a English Astana Sustainability; pdf 27.04.2017 ETC Project in Planning, financed by Strategy; Plan- ADB ning 10 Diversification of Kazakhstan’s Whiteshield 2015 English Kazakhstan Economy pdf 27.04.2017 ETC economy: A capability-based Partners approach 11 Main indicators of transport de- http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC velopment 2003-2015 stat.gov.kz/ Transport 12 Ecological indicators of envi- http://www. 2015 English Kazakhstan Statistics; Envi- xls 27.04.2017 ETC ronmental monitoring and as- stat.gov.kz/ ronment sessment 13 Car ownership levels 1990- http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC 2015 stat.gov.kz/ Transport 14 Trolleybus Statistics 2003-2015 http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC stat.gov.kz/ Transport 15 Tramway Statistics 2003-2015 http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC stat.gov.kz/ Transport 16 Bus Statistics 2003-2015 http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC stat.gov.kz/ Transport 18 Road Accidents 2012-2015 (fa- http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC talities/injuries) stat.gov.kz/ Road Safety 18 Labour Statistics 2001-2015 http://www. 2015 English Kazakhstan Statistics; La- xls 27.04.2017 ETC stat.gov.kz/ bour 19 Labour Statistics CIS 2001- http://www. 2015 English Kazakhstan Statistics; La- xls 27.04.2017 ETC 2015 stat.gov.kz/ bour 20 Labour Market Indicators 2001- http://www. 2015 English Kazakhstan Statistics; La- xls 27.04.2017 ETC 2016 stat.gov.kz/ bour 21 Passenger Turnover by Mode http://www. 2015 English Kazakhstan Statistics; xls 27.04.2017 ETC 2003-2015 stat.gov.kz/ Transport 22 Greenhouse Gas Emissions http://www. 2015 English Kazakhstan Statistics; Envi- xls 27.04.2017 ETC 1990-2014 stat.gov.kz/ ronment 23 Kazakhstan in Figures http://www. 2016 English Kazakhstan Statistics; Envi- pdf, doc 27.04.2017 ETC stat.gov.kz/ ronment 24 Assessment of the Air Quality of https://www. 2013 English Almaty Environment pdf 21.04.2017 ETC Almaty. Focussing on the Traffic research- Component gate.net/ publication/2685 18356 25 Proposals for the development unknown 2017 Russian Kazakhstan Legal doc 05.05.2017 BDC of legislation at the Ministry of Investments and Development 26 Presentation of legislative pro- unknown 2017 Russian Kazakhstan Legal pdf 05.05.2017 BDC posals 27 Legislative proposals to the unknown 2016 Russian Kazakhstan Legal doc 05.05.2017 BDC Ministry of Investments and De- velopment 28 Legislative proposals on paid unknown 2016 Russian Kazakhstan Legal doc 05.05.2017 BDC parking and public transport 29 Draft regulation on differentiat- unknown 2016 Russian Kazakhstan Legal doc 05.05.2017 BDC ed tariff 30 Operation Evaluation Summary EGC/EBRD 2017 English Almaty Transport pdf 05.05.2017 ETC Almaty Transport Integrated Ap- proach 31 Transport Poli- University of 2010 English Almaty Transport pdf 05.05.2017 ETC cy in London: Lessons Oxford for Almaty 32 Subregional Workshop in Al- PEP/UNDP 2013 English Global Transport; En- pdf 05.05.2017 ETC maty: Green and healthy-friend- vironment ly sustainable mobility.

102 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 33 National Transport Policy Ka- EGIS / Dorn- n/a English Kazakhstan Transport pdf 05.05.2017 ETC zakhstan ier (http:// www.trace- ca-org.org/ fileadmin/ fm-dam/ TAREP/65ta/ Country_ Profiles/CP_ chapters/ KZ_CP_Poli- cy_en.pdf) 34 Kazakhstan Strategy 2050 https://strat- n/a English, Kazakhstan all URL 05.05.2017 ETC egy2050.kz/ Russian, en/multilan- Kazakh guage/ 35 Kazakhstan Automotive Market PWC 2015 English Kazakhstan Automotive pdf 09.05.2017 ETC Overview Sector 36 Multi-modal Transportation In- Jiawen Yang/ 2013 English Kazakhstan Transport In- pdf 09.05.2017 ETC vestment in Kazakhstan: Plan- Patrick Mc- vestments ning for Trade and Economic Carthy Development in a Post-Soviet Country 37 Worldbank Statistics: Kazakh- Worldbank 2015 English Kazakhstan Statistics xls 09.05.2017 ETC stan Data Extract from World Development Indicators 38 World Statistics Pocketbook UN 2016 English Kazakhstan Statistics pdf 09.05.2017 ETC 39 Astana Masterplan Astana City 2013 English Astana Transport Plan- URL: http://as- 09.05.2017 ETC ning tana.gov.kz/en/ modules/material/47 40 Almaty Masterplan Kazakhstan 2008 English Almaty Transport Plan- URL: http://as- 09.05.2017 ETC Internation- ning tana.gov.kz/en/ al Business modules/materi- Magazine al/47 41 Strategic Plan of the Depart- Department n/a English, Karaganda Transport Plan- URL: http://www. 09.05.2017 ETC ment of Architecture and Urban of Archi- Russian ning uag-krg.gov.kz/ Planning of the Karaganda re- tecture and en/ gion for 2010-2014 Urban Plan- ning of the Karaganda Region 42 RECOMMENDATIONS UNDP / GEF 2016 English Almaty Transport Plan- URL/pdf: http:// 10.05.2017 ETC on promotion of the bicy- ning www.kz.undp. cle-pedestrian movements org/content/ and infrastructure development kazakhstan/en/ in Central Asian cities home/press- center/pressre- leases/2016/10 /12/-city-of-almaty-sustainable-transport-project-s-experts- worked-out-recommendations- for-the-active-mobility-development-in-central-asia.html 43 An extract from the Strategic Prime Min- n/a English Kazakhstan Transportation URL 10.05.2017 ETC Plan of the Kazakh Ministry of ister of Ka- Transport and Communications zakhstan for 2011-2015

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 103 44 Kazakhstan's 2030 Strategy: Richard 2013 English Kazakhstan overall pdf 10.05.2017 ETC Goals, Instruments and Perfor- Pomfret mance 45 Country Partnership ADB n/a English Kazakhstan Environment pdf 10.05.2017 ETC Strategy: Kazakhstan 2012–2016; Environment As- sessment (Summary) 46 The Concept of Transition of the LSE n/a English Kazakhstan Environment URL 10.05.2017 ETC Republic of Kazakhstan to Sus- tainable Development for the Period 2007-2024, Presidential Decree No 216 of 2006 47 Economics of Climate Change ADB 2017 English Asia Environment, pdf 12.05.2017 UNDP Mitigation in Central and West Economics Asia 48 PROMOTING CLEAN URBAN OECD 2016 English Kazakhstan Urban Trans- doc 12.05.2017 UNDP PUBLIC TRANSPORT IN KA- port; Environ- ZAKHSTAN: DESIGNING A ment GREEN INVESTMENT PRO- GRAMME 49 Программа развития Almaty City of Almaty 2017 Russian Almaty Urban Trans- URL 16.05.2017 UNDP – 2020 portation 50 Программа развития Almaty Almaty city 2016 Russian Almaty Urban Trans- doc 16.05.2017 UNDP – 2020 portation 51 Отчет о реализации Almaty city 2016 Russian Almaty Urban Trans- exc 16.05.2017 UNDP Программы Almaty - 2020 за portation 2016 год 52 Country Fact Sheet Kazakhstan IOM 2014 English Kazakhstan Overall pdf 16.05.2017 ETC 53 The Third–Sixth Na- Ministry of 2013 English Kazakhstan Environment pdf 16.05.2017 ETC tional Communication Environment of the Republic of Kazakhstan and water to the UN Framework resources Convention on Climate Change of the Re- public of Kazakhstan / UNDP / GEF 54 EY's attractiveness survey: Ernst & 2014 English Kazakhstan Business, Eco- pdf 16.05.2017 ETC Kazakhstan 2014: The brand Young nomics, Trans- paves the way port 55 Development of Ministry of 2014 English Kazakhstan Transportation pdf 16.05.2017 ETC transit and trans- Investments port potential of the and De- Republic of Kazakhsta velopment Republic of Kazakhstan 56 Kyzylorda Public Transport Corporate 2015 English/ Kyzylorda Public Trans- pfd 19.05.2017 BDC Strategy Solutions / Russian portation EBRD 57 Plan of actions in the imple- Republic of 2013 English Kazakhstan Overall doc 19.05.2017 ETC mentation of the Concept of Kazakhstan transition of the Republic of Ka- zakhstan to green economy for 2013 – 2020 58 Analytical information about lo- Pavlodar Re- 2017 English Pavlodar Roads URL 19.05.2017 ETC cal roads of Pavlodar region gion (http:// www.pavlodar.gov.kz/ page.php ?page_id= 93& lang=3)

104 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN ANNEX № 2: DATA REVIEW OVERVIEW Category 1: Public Transport Plans, Policies & Projects Document, Year Key Issues Key Results Input for other WP Kazakhstan Paper calls for widespread 3 key aims, incl. fostering PPP How can PT contribute to these Strategy 2050 economic, social and political Decentralization of power. This will ambitious goals? (2012) reforms to position Kazakhstan bring opportunities to P/T planning Relevance of PPP for PT projects among the top 30 global at the local governmental level economies by 2050 Public Transport and alternative Linked to country’s Foreign energy features in the top 10 Projects Policy Concept (2014-2020) listed under the strategy: “Public service transport in Kazakhstan will become more ecologically friendly. New infrastructure will be created for special electric cars to be used across the country”. National Overall strategy for all transport Transport at a national level is a WP 2 Benchmark: How is urban Transport Policy modes (urban transport not cross-cutting issues, therefore public transport addressed at Kazakhstan explicitly addressed) relevant policies stem from the national planning level in (2010-2014) the realms of transport and other countries, if at all? communications as well as economic development and overall strategic planning (up to 2020) Allocation and composition of total transport budget for 2010- 2014 Outline of transport infrastructures of national importance Astana Master Main town-planning document, Development of modern Concrete implementation Plan 2013 outlook to 2030, process infrastructure top priority measures and their suitability/ (horizon 2030) involved competitive tendering Plans for transport infrastructure comparison to international urban planning measures aimed improvements: 23 road examples (WP2) at creating a safe environment interchanges, 2 overpasses, Plans for LRT system (dated with convenient and pleasant 4 road bridges, 25 pedestrian 2014) (WP2-4) living conditions crossings Railway transport design as part Scheduled LRT system (27 km of the Master Plan length) Adjustment needed due to rapid Improvements to PT are ongoing growth  very broad range and (detailed schemes according to high uncertainty in population article in Astana Times, includes forecast estimates new route structure/hierarchy, new vehicles, tariff/ticketing system, driver training) Master Plan First large-scale urban planning Lack of up-to-date Master Plan Consider focus of TOD (Transit for the Almaty document drawn up under Clear lack of policies encountered Oriented Development) Development market economy conditions during attempts to implement 2002 (horizon urban planning measures aimed Master Plan 2020) at creating a safe environment Growing number of unplanned car with convenient and pleasant parks living conditions Calls for a new/revised Master Development of the city’s new Plan general urban plan began in Urban planning and transportation 2013, and was supposed to be should be subject to an integrated completed by the end of 2014 approach, transport should not be fitted into existing urban planning

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 105 Pavlodar – no n/a 2015 route optimization for P/T EBRD-funded tram project to official document took place and introduction of combat ageing P/T infrastructure in English electronic ticketing Privatization of bus fleet language found Strategic Plan of Focus seemingly on Developed by RT Consult, Include in benchmark analysis the Department redeveloping housing Architectural Company; no further Request partner BDC to of Architecture Plans for a Turkish investor to information available as to how P/T research for further information and Urban build a waterpark/theme park has been addressed in Kazakh/Russian Planning of No information on P/T publicly the Karaganda available in English region for 2010-2014 – document not available online in English Taraz city Master Focus on building residential Pedestrian walkway considered Include in benchmark analysis Plan (horizon complex/district designed for Request partner BDC to 2025) 15’600 people research for further information Micro district anticipated to in Kazakh/Russian address problems of population growth and traffic flow (not further specified) Oskemen – no n/a n/a decide whether to include in official document benchmark analysis in English Request partner BDC to language found research for further information in Kazakh/Russian Semey – no n/a Public transport supplied by buses decide whether to include in official document and mini-buses benchmark analysis in English Request partner BDC to language found research for further information in Kazakh/Russian Oral – no official n/a n/a decide whether to include in document in benchmark analysis English language Request partner BDC to found research for further information in Kazakh/Russian Aktobe Master Plans to develop a satellite city EBRD funded CNG bus project decide whether to include in Plan (undated) Presentation of two alternatives: benchmark analysis – Information centralized road layout, Request partner BDC to available in decentralized layout research for further information Turkish in Kazakh/Russian Sustainable Efforts to mitigate GHG- Listing of 8 major areas for the WP 2 Benchmark: Policy Transport Emissions, as Kazakhstan is the development of policies: comparison with cities of Strategy for largest contributor in Central 1. Improve level of service of similar size; listing of case study Almaty (2013- Asia public transport examples 2023) Transport as key contributor, 2. Integrate transport and urban Mirror 8 sustainable strategy City of Almaty especially in Almaty planning indicators in comparison cities Sustainable (where existent) Aims for holistic approach to 3. Manage parking Transport transport and urban planning WP 3 Scenarios: Focus on 4. Manage traffic Strategy: Why and an increase in sustainable emission scenarios based on do we need transport and public awareness 5. Promote cycling and walking the effectiveness of successfully innovations for of this 6. Promote low emissions car zones implemented measures. the cities? Aims to curb GHG emissions in 7. Integrate the suburban transport How can this be calculated/ general network with the city modelled? 8. Develop road in sustainable manner

106 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Focus now on how to implement How are emissions from these policies to achieve – other urban sources (heating, amongst others – a higher share industry) increasing to maybe of modal split in favor of public offset positive contribution by transport transport improvements? Strategy outlines targets and WP 4 Recommendations: Status in 2012 of 8 predefined implementation “success” sustainable strategy indicators *  1. Devise database/set of Urban Mobility Indicators, link with existing data sources and compare to national averages; 2. Structure indicators around 8 policy measures; 3. Consider importance of timeline to allow for before/after data analysis to detect measure effects; 4. Define roles and responsibilities for database/indicator maintenance and use  link to review of statistical documents (Cat. 2) City of Almaty Motorization rates and GHG 4 Project objectives:1. P/T WP 2: Benchmark  How Sustainable emissions for Almaty management and air quality should do other cities address Transport: Forecast population growth be improved, 2./3. Capacity GHG reduction? What travel UNDP-GEF building for holistic planning Listing of main problems: demand measures are in place Project 2011- for better P/T quality and more pollution, lack of holistic planning elsewhere? 2016 integration should be strived for, 4. approach, no travel demand Implementation of demonstration management, congestion, poor project to raise awareness of P/T quality sustainable transport Lists inventory of public transport Outlines general approach to (fleets) GHG reduction (3 TDM measures: Identified core challenges to 1. Conducive urban infrastructure, project success 2. Increased share of non- Outlines Work Plan for 2012- motorized and P/T modes, 3. 2013 Cleaner fuels/vehicles) Operation EBRD US$10 million loan for Fourfold integrated approach: 1. WP 4 Recommendation: Define Evluation Almaty tram system in 2009 Almaty bus sector reform project, clearly challenges, actions, Summary: (modernization of new electrical 2. Almaty trolleybus project, objectives and monitoring Almaty Transport substations and improve the 3. Almaty e-ticketing system indicators Integrated reliability and efficiency of the expansion and 4. Almaty LRT PPP. Devise traffic computer model, Approach (2017) company’s services.) Status: e-ticketing project new comprehensive route Projects aimed at contributing dropped, LRT project making scheme, carbon emission to commercialization and slower than expected progress reduction assessment environmental improvements Project evaluation also concerned methodologies Benchmark analyses with the update and success of Creation of new Urban Transport PPP Authority (what has become of Technical cooperation aspects EBRD recommendation?) most pronounced (EBRD states “over reliance”) Policy dialogue too vague (EBRD statement) Policy amendments suggested for signing and implementation of PSCs and strengthening of regulatory function

*. Share of sustainable transport modes (P/T, walking, cycling) 2. Share of MRT (Metro, LRT, BRT), 3. Number of MRT corridors, 4. Share of residents living in a radius of 500 meters from an MRT stop, 5. Reduction of GHG emissions, 6. Reduction of overall car accident fatalities

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 107 Transport Policy Good summary of Almaty’s Private/commercial organizations WP 4 Recommendation: in London: geographic/planning (e.g. staff buses) make up highlights limitations to lessons for development, situation considerable part of bus services introducing EURO Standards to Almaty (2010) Overview of transport policies in  63% of buses, according to buses London study, do not directly operate P/T WP 2 Benchmark: details on services Figures on actual effectiveness/ transport policy in London  reduction of vehicles for London deduction of recommendations congestion charging for Almaty for congestion charging scheme Energy Efficiency Mostly environmental issues Challenges in PT according to 78% of people surveyed in the Transport addressed survey: 49% traffic jams and believe that the Elaboration Sector in Also analysis of choice of congestion, 35% environmental of mechanisms to encourage Kazakhstan: transport mode and reasons to damage due to high GHG purchase of fuel-efficient and Current choose / or not to choose car emissions, 8% each high energy electric cars would encourage measures consumption and wear&tear of PT PT use and status for vehicles This information together with improvement, Critical assessment of the other sources suggests that 2015 currently poor actual mobility the public is indeed ready for provided by PT due to 1. Lack change in mobility patterns and of dedicated bus lanes, 2. Lack a shift towards PT of priority as signals, 3. Lack of Include in benchmark, scenarios integration between modes, 4. and recommendations Poor PT planning, 5. Lack of navigation and timing systems, 6. Lack of incentives for transport energy efficiency

Category 2: Public Transport Statistics

Document, Year Key Issues Key Results Input for other WP Recommenda- Promotion of walking and cycling Recommendation for the perfor- WP 4: Make use of generally tions on pro- by means of governmental initi- mance of a street inventory with wide roads to incorporate cy- motion of the atives special focus on existing/lacking cle lanes; discuss various ap- bicycle-pedes- Identification of problems/chal- infrastructure to enable safe walking proaches (segregation, combi- trian movements lenges for the region and cycling nation) and infrastructure Cycling to date not integral part Recommendation to derive a Street WP 2: Benchmark: City budget development in of urban transport planning Network Modernization Plan in a for cycling, walking: what pro- Central Asian cit- participatory manner (stakeholder portion of transport budget is Professional knowledge for cycle ies, Conference involvement) allocated to walking and cycling planning needs to be established Summary (2016) in other cities? Clear organizational structures and delineation of responsibility for cycling issues needs addressing Training and awareness programs for citizens lacking Main indicators Socio-economic indicators Up to date information for first General: Transport-related sta- of transport de- Growth rate index for transport quarter of 2017 tistics of limited further use velopment 2003- Main socio-economic indicators Transportation statistics at nation- WP2: Detailed socio-economic 2015 for 2013.2014,2015 available in al level, divided into freight and statistics for Benchmark .doc-format passenger Ecological Comprehensive and well-struc- Detailed Excel-Datasets with sig- WP2 Benchmark: if possible, indicators of tured overview, relevant da- nificant timelines (2010-2015)mirror passenger transport de- environmental ta-sets include: available for further analysis/ mand levels across countries monitoring and Air pollution and ozone deple- graph generation; e.g. “Ambient (national level figure), howev- assessment tion: 1. Emissions of pollutants Air Quality” for Karaganda City; er, consider issue of calibration incl. GHG-emis- into the atmospheric air, 2. Am- “Ground Level Ozone” for 5 cities across such diverse data sets sions 1990-2014 bient air quality in urban areas

108 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Climate Change: GHG emis- GHG emissions timeline 1990- sions 2014, however, no aggregation Transport: 1. Passenger trans- by transport / public transport port demand, 2. Composition of Passenger transport de- road motor vehicle fleet by fuel mand for long timeline type, 3. Average age of road mo- 1990-2015 for municipal tor vehicle fleet transport – this has risen significantly in the observation timeframe Vehicle fleet by fuel type: timeline shows that gasoline dominates with >95%, Diesel and electric almost no impact Vehicle age: 5 year data timeline shows that old vehicles dominate (> years), however, this share is gradually decreasing Tramway Statis- Breakdown of operating tram- Overall from 2003-2015 there has What has the reduction in the tics 2003-2015 ways length (double track) for 4 been a slight reduction in the track offer of tram-based services [http://www.stat. regions (Karaganda, Pavlodar, length for trams, esp. in the Kara- been replaced with? How has gov.kz/] East Kazakhstan, Almaty City) ganda region the composition of P/T offer Breakdown of tram park rolling The same applies to tram park changed over time? stock rolling stock Breakdown of transportation of The transportation of passengers passengers by tram and pas- has significantly dropped across senger turnover all 4 regions and so has the turnover Bus statistics No distinction between urban Increase for all indicators = bus Deduction: bus services have 2003-2015 buses and national services travel has increased, so has bus replaced tram services over time [http://www.stat. (long-distance) service in terms of fleet size (see above comment) gov.kz/] Breakdown of data into 16 cit- Exception Almaty: Here fleet has ies/regions slightly shrunk but passenger Development of bus fleet size turnover has grown  higher oc- (number of buses) cupancy rates? Larges buses? Number of passengers transported by bus Bus passenger turnover by KM Car ownership Data available at overall national Steady rise of private car owner- WP 2 Benchmark: Comparison levels 1990-2015 level (needs to be supplement- ship levels from 4,7 in 100 per- to other countries/cities this lev- [http://www.stat. ed by city-level data) sons in 1990 to 21 out of 100 per- el – although it has risen signifi- gov.kz/] Car per 100 persons sons in 2015 cantly – may be considered low on an international scale Timeline 1990-2013 Trolley bus 2003- Evaluation for 8 regions/cities Data sets suggest, trolley bus sys- 2015 Data categories same as for tems were abandoned in some [http://www.stat. tram (see above) regions/cities (no more data avail- gov.kz/] able from a certain year onwards) Figures have decreased for network length, passenger volumes Road Accidents Evaluation for 4 year period Significant rise of accidents in ob- WP 2 Benchmark 2012-2015 (fa- Division into 16 regions/areas; served timeframe Consider calibration issues; talities/injuries) Astana and Almaty city both sep- Especially for Almaty city Kazakhstan reports absolute [http://www.stat. arate entries However slight decrease of fatal figures, not indexed or by 100 gov.kz/] Distinction of accidents by se- accidents (more injured) inhabitants, comparability un- verity (death and injury) certain

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 109 Labour Statistics Comprehensive array of da- Though category Transportation 2001-2015 ta-subsets, further consider the and Storage encompasses many [http://www.stat. following (for benchmarking): more systems, P/T is represented gov.kz/] Unemployment rates here. Overall the sector has seen an continuous rise in employment Employment by economic ac- levels from 2010-2016 tivity  Category Transportation and Storage Figures reported quarterly Labour Statistics Allows national comparisons be- Diverse picture: Kazakhstan com- CIS 2001-2015 tween Kazakhstan and a further paratively prosperous = rise in [http://www.stat. 9 CIS countries for economically economically active population gov.kz/] active population; unemploy- and decline in unemployment rate ment rate Passenger Turn- Absolute figures reported Bus: significant increase Link to availability of service and over by Mode Number of passengers per KM Taxi: moderate increase service levels evident 2003-2015 reported Trolley bus and tram: significant [http://www.stat. Modal split at national (not ur- decrease gov.kz/] ban) level: railway, bus, taxi, trolley bus, tram, river, air Relevant categories: bus, taxi, trolley bus, tram World Bank Development indicators: pop- Very general figures at national WP 2: common denominators Statistics for ulation, GDP, GDP per capita, level, no regional distinction for international comparison of Kazakhstan School enrollment (primary), Life Income status has increased benchmark countries expectancy at birth Since 2002, GDP per capita has ris- Annual reporting en sixfold and the incidence of pov- erty has fallen sharply (World Bank). UN World Statis- 50 indicators over various years n/a WP 2 Benchmarking guaranteed, tics Pocketbook from 2005 to 2016 as all countries represented. (2016) Urban population growth rate Good source as an overview starting-point

Category 3: Individual Transportation (Cars)

Document, Key Issues Key Results Input for other WP Year Almaty Analysis of current One objective of the parking strategy is The parking strategy can be extended to a Parking parking practices in to arrange for income for the municipality Park+Ride system including its legislative Strategy, Almaty to be invested into sustainable public consequences 2013 Development of a transport provisions Capacity building: development of financial concept for a A dynamic parking routing information a parking organization within the parking strategy and a system (PRIS) is suggested in order to municipality city action plan (10 step reduce traffic jams in certain areas and Inputs for WP 2 and 3 program) allow for smoother traffic flows. Open question: what is the implementation Establishment of a parking organization status of this project? Has a parking within the municipality organization / unit been developed? Automotive Quantitative Analysis of Sensitivity of the automotive sector to Cars have become more affordable; thus an Industry in the the automotive industry global economic changes increase in car ownership can be expected Republic of sector Irregularity of income distribution leads Even though the ecological Euro-4 rules Kazakhstan, Motorization rate to a high number of older cars being have been set in place, older cars with 2016 Analysis of car age and used and the impossibility of renewal respective emissions are still the majority fleet renewal among It is assumed that more than 70% of in traffic inhabitants cars used do not apply the new Euro- Emissions in urban areas and air pollution 4 ecological guidelines adopted by can be expected to remain the same or the government increase further

110 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Availability rate of cars The availability ration decreased Input for WP 2, 3 and 4 for inhabitants meaning that cars are generally more Absorption ratio affordable and can be paid off during (purchase of all cars fewer years supplied to the local The absorption ratio has been rising market) continuously; more locally produced cars have been offered on the market due to legislation on import restrictions Transport Assessment of the The private car-ownership rate in The private car-ownership rate in Almaty is Policy in Public Transport Almaty is above average above average London: Situation in Almaty and Diverse public transport system (Bus, Almaty’s past transport policies have Lessons Kazakhstan Trolleybus, Tram, Metro) favored private transportation over public for Almaty, Reduction of the public transport transportation 2010 fleet for economic reasons during Valuable steps have been taken to the economic crisis of 2008/2009 improve the situation, with the support of Difficult situation regarding the quality international organisations of routes and street in Almaty that E.g. urban planning has become more haven’t been designed for so many important and is integrated into recent cars, plus public transportation planning documents “Almaty Parking” is considered too Information to be requested / verified within cheap, private transportation is interviews therefore more attractive than Public Input for WP 2, 3 and 4 Transportation and too few revenues Possible lessons from London PT Policies: can be invested by the municipality 1. Congestion Charging Scheme; 2. Taxation policies for cars; 3. Urban planning measures to promote walking, cycling and the use of Public Transportation,. 4. Park+Ride facilities & park management

Category 4: Sustainability & Environment

Document, Key Issues Key Results Input for other WP Year Transport Pol- Assessment of the Pub- 90% of all emissions into the atmos- Problematic factors for emission reduc- icy in London: lic Transport Situation in phere in Almaty stem from transpor- tion: 1. Fuel quality, 2. Implementation Lessons Almaty and Kazakhstan tation of governmental control systems for Eu- for Almaty, Since 2009, new ecological Euro ro-standards, 3. Quality of vehicle inspec- 2010 standards have been implemented tion continuously, in 2016 Euro-4 was adopted legally ADB Country Environmental assess- The majority of air pollution stems Threat of current developments and cli- Partnership ment of the current from industry and transportation mate change to economic development, Strategy: national situation in Ka- Total greenhouse gas emissions are health and life quality Kazakhstan zakhstan equivalent to 250 mio. t of carbon Suggestions for future environmental law 2012-2016: dioxide and thus highest in Central Asia and related issues: 1. Mainstreaming en- Environmen- Legal achievements: vironmental issues into other policy mak- tal Assess- ing and development plans, 2. Raising • Adoption of the Environmental ment public awareness, 3. Provide funding, 4. Code in 2007 Promote collaboration • Strategic Plan for the Republic of Kazakhstan, 2011–2015 • 2006 Concept of Transition of the Republic of Kazakhstan to Sustainable Development for 2007–2024 • National Environmental Action Plan, National Biodiversity

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 111 • Strategy and Action Plan • Conception of Environmental Safety for 2004–2015 • Green Bridge Partnership Pro- gramme (GBPP) CAST: City Presentation on public Emissions per vehicle type: 1% elec- Include information in further analysis within of Almaty transport situation tric, 77% cars, 22% busses WP 2, 3 and 4 Sustainable Introduction to the CAST Lack of mobility management and an Verify information within stakeholder inter- Transport, project integrated transport strategy views UNDP-GEF Situation on emissions High emissions, high air pollution and Incorporate next steps into WP 3&4 Project in Almaty low life quality in congested areas 2011-2016 One of the first steps to PT management: Center Almatygortrans Assessment Assessment of air quali- Almaty has highest illness and mor- of the Air ty in Almaty and its con- bidity rate regarding respiratory, en- Quality of sequences docrine, bronchial asthma, cancer Almaty. and blood disease Focussing Almaty’s geography and topology on the Traffic situated in a valley surrounded by Component, mountains further prevent proper air 2013 circulation Transportation and the three power plants result in very high nitrogen dioxide levels in the air Energy Concept for Transi- Energy consumption by sector in Derive information for benchmark analysis, Efficiency in tion of the Republic of 2012: 42,3% industry, 56,1% other, scenarios and recommendations the Transport Kazakhstan to Green 1,6% transport Verify recommendations: 1. Monitor and Sector in Economy (2013) to lay Oil use by sector in 2012: 63,7% enforce fuel efficiency; 2. High quality fuel; Kazakhstan: the grounds for low-car- transport, 16% non-energy, 11,8% 3. Traffic management systems: 4. Mobility Current bon development and other, 8,5% industry management measures energy efficiency Emissions per passenger are 5 to 10 Verify pilot projects and status for Review of “Concept for times less in PT than cars; less road Statistics for choice of mode and reasons improvement, Transition of the Republic space is occupied in PT per passenger for giving up cars clearly shows that the 2015 of Kazakhstan to Green Pilot projects: 1. Development of four public is sensible to environmental devel- Economy, 2013” green cities (“Green 4”); 2. Electric opments and open for change; also it is Review of Action Plan and hybrid vehicles in Almaty and As- clear that change needs to come top-down for Implementation of the tana; 3. National resource account- through policies regarding taxation, gas Concept for Transition of ing system, 4. Environmental zones prices, high quality fuel as well as financing the Republic of Kazakh- with limited car access in Almaty of PT improvements  include in scenario stan to Green Economy Reasons for choice of transport mode: analysis and recommendations for 2013-2020 32% other, 19% health, 16% mobility Review of the The Ener- Reasons for possibly giving up car: Open question: What is the current status of gy Efficiency 2020 Pro- 42% greater mobility of PT, 25% strong the mentioned four pilot projects? gram (2013) air pollution, 12% each eco-taxes for vehicles and increased gas prices Greenhouse Data available for the In the past 14 years, overall emis- Transportation is not identified individually, Gas Emis- years 1990 to 2014 for sions as CO2 equivalents have been but should most likely be included in overall sions 1990- six specific gasses as decreasing from 370.000 mt/year to emissions from energy consumption 2014 well as by sector approx. 340.000 mt/year Statistical input will be further used in the [http://www. Sector analysis shows Emissions by energy consumption benchmark analysis, the scenario develop- stat.gov.kz/] differentiation between and from agriculture has been reduc- ment and the recommendations total energy use, indus- ing as well try, forestry and agricul- But emissions from waste increased ture over the past 14 years, from industry it decreased in the 1990s and has been increasing steadily since

112 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Category 5: Policies and regulations

Document, Key Issues Key Results Input for other WP Year Concept The document outlines The Concept specifies following 6 Request partner (BDC) to proceed with proposals key goals required major areas of improvement: detailed legal analysis of the concept and on the for achieving better - Management of public transport legal initiatives specified in the document. development organized and managed services (hereinafter – PTS); of legislation public transport services - planning procedures for PTS; for the in the city of Almaty. Ministry of - development of PTS; Investments - development of paid parking and areas; Development - taxi services; - Use of private vehicles. The document includes several general recommendations for each major area specified above. No particular amendments are specified. Originator – unknown. Status of implementation – unknown. Draft The document outlines The document shall replace existing Request partner (BDC) to proceed with regulation on procedure of applying procedure of applying fixed tariff detailed legal analysis of the concept and differentiated multiple tariff in the city of which was approved by the Almaty legal initiatives specified in the document. tariff Almaty. municipal authority with the Decree # 2/571 dated June 27, 2012. New procedure specifies one basic tariff and four multiple tariffs, which shall be implemented utilizing coefficient. Rules of applying different coefficients are not clear. Originator – Local Municipal Authority (Almaty Akimat). Status of implementation – the draft; has not been approved. Legislative The document The goal is to improve and develop Request partner (BDC) to proceed with proposals on provides detailed city and surrounding areas’ detailed legal analysis of the legal situation paid parking recommendations for transportation area and paid parking and legal initiatives specified in the and public improvement of city through increasing the liability document. transport public transport, paid (administrative fines) and modifying parking. It includes the procedure of tariff approval and detailed amendments subsidy allocation. to particular Kazakhstani The Document includes comparison laws and regulations table and demonstrates the and justification. difference between existing All recommendations revision of laws and regulations and specified therein shall proposed. apply to Astana and The content includes Almaty only. recommendations for amendment of State Codes and Laws and shall pass through Kazakhstani Parliament approval. Originator – Government of Kazakhstan. Name of Ministry is not available. Status of implementation – unknown.

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 113 ‘Ticket and The document The goal is to improve and develop Request partner (BDC) to proceed Fare System provides detailed Public transport services though with detailed legal analysis of the legal Almaty Public recommendations for utilizing multiple tariff and increasing situation and legal initiatives specified in Transport / improvement of public the liability (administrative fines) the document. ‘Итоговый transport services. violation of the law in the area of отчет «Си- It includes detailed public transport. стема биле- amendments to The Document includes comparison тирования и particular Kazakhstani table and demonstrates the difference тарификации laws and regulations, between existing revision of laws and в обще- and justification. regulations and proposed. ственном If approved, it will be The content includes recommendations транспорте applied to the whole for amendment of State Codes Almaty city» territory of the Republic and Laws and shall pass through of Kazakhstan. Kazakhstani Parliament approval. Originator – Government of Kazakhstan. Name of Ministry is not available. Status of implementation – unknown.

Category 6: Socio-economic Development Document, Year Key Issues & Results Input for other WP World Bank Kazakhstan has an average GDP per capita of approx.. 7000 USD Relevant issue for Development (2016) and an overall nominal GDP of 130 billion USD (2016) recommendations: add urban Indicators 2007- Kazakhstan is among the transforming states transportation projects into the 2015 national strategy and allow for Overall population of approx. 17,3 Million inhabitants national funding High urbanization rate  approx. 55% live in cities United Nations Both the overall population as well as the urban population has been World Statistics slowly rising Pocketbook 2016 The overall economic development came to a drastic halt with the world economic crisis in 2008/2009 that can be clearly identified in Kazakhstan the development of GDP and inflation rate National Statistics After an increased economic development, Kazakhstan experienced Office: Population a slight decrease in the past years Development / Kazakhstan in Unemployment rate has been decreasing drastically since the Figures 2016 beginning of the millennium and is currently at approx.. 5% The Strategy “Kazakhstan 2050” promotes 100 steps to a modern state, sustainable industrialization and economic growth • It refers primarily to economic and industrial development by reforming the financing sector, the extension of oil production and locally produced oil related products, attracting investments, etc. • Regarding transportation, special emphasis is put on international transport corridors, freight transportation and logistics as well as civil aviation and railways Transport Behavior The survey shows that PT is currently primarily used by inhabitants Analyse further relationship and Mobility in between 14 to 24 years as well as above 50 years with a very low between household income the City of Almaty, monthly income of less than 100.000 tenge and use of public transportation 2016 Cars are primarily used by medium and high income households Analyse external costs related using it for work and by housewifes to air pollution and traffic 24% of Almaty residents have never used PT; main reasons stated: congestion in comparison to PT long trips, full busses, low comfort, inconvenient routes, poor costs (examples available from frequency, next stop too far away selected European cities) The majority of answers suggest that PT would be more attractive Evaluate possibilities for when dedicated bus and trolleybus lanes would be used company-borne transportation for employees and the As source of information, the majority would use timetables at stops, promotion of respective the internet as well as TV cooperation

114 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 84% of students are not offered specific transportation by Include survey on PT prices and organization but 66% would be interested in using it fares in financial analysis of PT 93% of employees are not offered company transportation, but 57% and the benchmark analysis would be interested in using it Include inhabitant’s Regarding the costs for transportation: 66% are willing to pay up assessment of possibly giving to 100tenge per trip (30 eurocents), 21% up to 120 tenge (35 up car or using bicycles in eurocents), 11% up to 150 tenge (40 cents) scenarios and suggestions/ recommendations Regarding payment: 54% pay by cash at the driver, the rest uses the Onay cards Regarding car usership and parking behavior: 29% state they have a car in the family, 11% pay for parking, the majority using city car parks In the event of significant increase of parking fees, 16% are willing to give up their car, 7% are uncertain Transportation used if giving up car: 61% would use PT, 28% would use cabs, 17% would walk, 19% would do ride-sharing 16% have a bicycle in the family; 53% of which use it for leisure, only 6% use it for daily routines; 40% are not prepared to use bicycles more frequently Reasons for not using bicycles: 37% safety and security, 21% health, 14% lack of dedicated cycling tracks Regarding environmental issues: 72% agree that GHG emissions from transportations has a negative impact on health; 67% believe that trucks should be permitted entry into city center

Summary: Preliminary outcomes and open questions Category Summary Cat. 1 Public Transport Public Transport and alternative energy features in the top 10 Projects listed under the Plans, Strategies & strategy: “Public service transport in Kazakhstan will become more ecologically friendly. New Projects infrastructure will be created for special electric cars to be used across the country”. City transport master plans can be found for Almaty, Astana and Aktobe In these cities in particular, development goals for public transportation have been developed, this is especially the case for Almaty Several international organizations promote and co-finance PT projects, such as UNDP, EBRD, ADB Kazakhstan Strategy 2050 and the National Transport Policy Kazakhstan primarily focus on national transportation with special emphasis on freight traffic and the involvement in Eurasian corridors. Specific urban transport targets are mostly missing. Next steps: do further analysis with documents concerning Cat. 5 and evaluate the current policy status; compare local and national transport policies in Kazakhstan with comparable European cities in benchmark analysis. Open issues: are further documents, policies and plans available for other Kazakh cities? Are additional sources available that could be able for benchmark analysis and the provision of recommendations? Cat. 2 Public Transport In general valuable statistical information on the use of transport modes are available through Statistics the Committee on statistics from the Ministry of national economy of the Republic of Kazakhstan Information is also available through city websites of some of the larger cities (Almaty, Astana), but not the smaller ones Nonetheless, a validation of data is almost impossible due to lack of other sources of information; for this reason the given numbers are used in order to get an overall picture of the past and current transport situation First deductions: bus services have replaced tram services over time; Passenger transport demand has risen significantly in the observation timeframe (since 1990) Vehicle fleet by fuel type: timeline shows that gasoline dominates with >95%, Diesel and electric almost no impact; Vehicle age: 5 year data timeline shows that old vehicles dominate (> years), however, this share is gradually decreasing

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 115 Regarding cycling: Recommendation for the performance of a street inventory with special focus on existing/lacking infrastructure to enable safe walking and cycling; Recommendation to derive a Street Network Modernization Plan in a participatory manner (stakeholder involvement) Next steps: compare overall PT use, offer, demand, financing and organization with Open issue: valid information on Public Transport Financing could not be found and evaluated. Is it possible by UNDP, EBRD or other source to provide this type of information? For instance: amount of funding for Public Transportation in cities; by national or local governments; relationship between government funding and revenues; regarding private bus companies: do they solely rely on revenues from services offered? What is the average fare? … Cat. 3 Individual The analysis shows that the motorization rate has been increasing, also due to an increase in Transportation GDP per capita. The national car production industry is sensitive to global economic developments and was therefore hit by the 2008/2009 economic crisis. On the national level, the ecological Euro-4 standards have been implemented by law in 2016, but implementation remains a difficult issue Next step: assess within stakeholder interviews and compare motorization rate within benchmark analysis. Cat. 4 Sustainability & The analysis of environmental issues in Kazakhstan and selected cities shows that the country Environment itself has the highest GHG emissions in Central/West Asia, Almaty has the highest in the country. The national and regional governments have been aware of the situation and several national legislative approaches have been taken to tackle this problem. Almaty has also been promoting sustainability and environmental friendly growth. Next steps: Further verify information within stakeholder interviews and compare within benchmark analysis. Open question: What is the current status of the mentioned four pilot projects? Cat. 5 Policies and The result of overview of legal documents demonstrates that Kazakhstan has acknowledged regulations existing issues in Public transport area and expresses interest in its development. However, recommendations presented in legal documents does not include sufficient justification. Several recommendations even do not have legal grounds and shall not be a subject of law amendment. The documents include recommendations, which might be implemented utilizing existing regulations, without any amendments. The concept of legal documents does not include implementation plan and transition period, which might be critical. Open question: what is the status of legal documents? Whether it have been reviewed and approved by legislative authority? Next steps: • Proceed with detailed analysis of the situation and applicable regulations. • Analyze recommendations specified in legal documents comparing its consistency with existing legislation. • Participate in State working Group under responsible Ministry and assist with development of suitable amendments to laws and regulations (if necessary). • Assist with developing reasonable justification based on best international practice (if necessary). Cat. 6 Socio-economic The overall socio-economic development suggests that whilst GDP p.c. has been increasing, development the motorization rate has been increasing as well (taking into account other factors as well) The Mobility survey showed that the use of Public Transportation or car depends highly on the monthly income and that PT needs to stay affordable Open question regarding ticketing: Is the Onay Card System actually in place and are there user statistics available? Issue to be further analyzed: Analyze external costs related to air pollution and traffic congestion in comparison to PT costs (examples available from selected European cities) Next steps: Further verify information within stakeholder interviews and compare within benchmark analysis.

116 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN ANNEX № 3: STAKEHOLDER QUESTIONNAIRE BACKGROUND INFORMATION TO THE As stakeholder engagement and participation are key elements to the successful implementation of PROJECT sustainable urban public transport projects, one of the very first project steps is to interview relevant The UNDP project “City of Almaty Sustainable stakeholders in order to understand their involvement Transport“ Project (CAST) is a GEF-funded urban in and assessment of sustainable public transportation transport project primarily aiming at in Kazakhstan. • Reducing CO emissions and air pollution in Almaty 2 This way, the consultants and CAST Project and the wider city area, Management will be able to understand and evaluate • Improving Almaty’s public transport management the stakeholders’ assessment of the past, current and system through capacity building, and future public transport situation in Kazakhstan. • Establishing Almaty to become the model city of sustainable urban public transportation in Kazakhstan. INSTRUCTIONS AND INFORMATION ON The current UNDP project “Policy review of QUESTIONNAIRE COMPLETION development of Public transport sector in Kazakhstan” aims at realising a comprehensive policy review of the Answers will be treated anonymously and evaluation public transport sector in Kazakhstan by building on will concentrate solely on the various stake-holder preceding works as well as subsequent proposals for groups not the individual persons’ assessment. legislative adjustments to enable the improvement of Please complete each section. If the question is financing opportunities for enhanced urban transport unanswerable from your perspective, please indicate infrastructure. this by ticking “unable to answer”. STAKEHOLDER QUESTIONNAIRE GUIDELINE

A) GENERAL INFORMATION Information about Stakeholder: Name of respondent: Name of Company: Location of Company (City):

Stakeholder Group Local Authority  (Public Transport) Interest Group  (please tick one box): Regulatory Agency  University/Research institution  Public Transport Company  International Agency  Private Sector Company (not Other………………………………   further specified) To be filled by interviewer Information about Interviewer: Name: Company: Date of Interview: Place of Interview: Consecutive Number (Code):

B) STAKEHOLDER’S INVOLVEMENT B.1 As an introduction to this interview, please elaborate shortly what your role is concerning public transportation in Almaty and/or Kazakhstan!

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 117 B.2 Please assess the relevance of the following parameters for promoting sustainable public transportation in Kazakhstan! (one tick per box only) Reason irrelevant (-) relevant (0) very relevant (+) don’t know/no answer Knowledge Sharing; Cross-learning     Securing additional funding     Improving public transport service     levels Integrate transport and urban     planning Manage city-wide parking of private     vehicles Manage inner-city traffic both     private and public Promote more cycling in and     around the city Promote low emission car zones in     the city Link suburban and urban transport     networks Develop road-based transport     sustainably Other:     ______

C) ASSESSMENT OF THE CURRENT TRANSPORT SITUATION D.1 Referring to the overall Public Transport Situation in Almaty, how do you assess the following parameters? Please tick one box only. Please rate on a scale from 1 to 5 (1: not satisfying; 5: very good) 1 2 3 4 5 Unable to (–-) (–) (0) (+) (++) answer Overall Transport Offer (capacity)       Offer of different transport modes       Frequency of services provided       Fares/Price structure       Ease of interchanging       Available timetable information       Quality of bus stops/terminii       Drivers/staff P/T service knowledge       Speed of transport offer       Comfort of travel       Punctuality of services       Further comments:

D.2 In your opinion, what are the most important issues for satisfactory Public Transport Services to passengers? Please tick one box only. Please rate on a scale from 1 to 5 (1: not important; 5: very important) 1 2 3 4 5 Unable to (–-) (–) (0) (+) (++) answer Affordability (Ticketing Price)       Transparency of ticketing structure      

118 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Frequency of services offered       Diversity of transport modes       Comfort of travel       Spatial coverage of transport       network Ease of changing mode/service       Availability and accessibility of pre-       trip timetables Availability and accessibility of on-       trip information Driver friendliness/approachability       Travel Speed       Personal safety at stops/on board       Punctuality of service       Room for wheelchairs/strollers       Accessibility for disabled/elderly       Further comments:      

D.4 Do you see the need for additional public transport services to be provided in Kazakhstan? Yes  No  Please elaborate: Please elaborate:

D.5 Is individual motorized traffic (private cars, motorcycles, etc.) currently more attractive than public transportation? Yes  No  Why? Why?

D) ASSESSMENT OF FUTURE PUBLIC TRANSPORT SITUATION D.1 From your point of view, which issues should be addressed in the future regarding the development of sustainable public transportation in Kazakhstan? (one tick per box only) Not important medium Very important don’t know/no Expectations (-) importance (0) (+) answer Development of pilot projects*     Driver efficiency training (lower fuel consumption)     Greater public awareness of walking and cycling     Initiating better construction standards     Lowering GHG emissions caused by cars/traffic     Increasing modal split for public transport     Traffic-related noise reduction in urban areas     Developing an integrated public transport system     New policies regarding public transportation     Other: …………………………….    

* For example: Light tram line, Bus Rapid Transit, new transport demand model and cost-benefit analysis, new city master plan

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 119 E.2 How do you think will the following aspects develop by 2030 with continued efforts to promote and work towards a sustainable, accessible and affordable public transport network in Kazakhstan? Please rate your perceived change by ticking one box only. strong strong moderate Status Quo moderate don’t know/ Situation for…in 2030 increase decline (--) decline (-) (0) increase (+) no answer (++) Public awareness of transport-       related problems Quality of inner-city living/working       Greenhouse Gas Emissions       Car-induced congestion       Road fatalities       Private car ownership levels       Number of inner-city parking       spaces Operation of new P/T vehicles       Revenue generated from parking       fees Revenue generated from P/T       services Length of bus rapid transit network       Length of cycle route network       Other: …………………………….      

E) PUBLIC TRANSPORT FINANCING E.1 Please elaborate in your own words the current situation in public transport financing in Almaty and / or Kazakhstan!

E.2 From your point of view, is it necessary to reform the current public transport financing system in Kazakhstan? Yes  No  Please elaborate: Please elaborate:

E.3 Please assess the following statements regarding public transport financing: I don’t Unable to I agree agree answer Public transportation should receive more government subsidies.    Public transportation should be financed 100% from government subsidies.    Public transportation should be solely financed through tickets and revenues.    Public transportation should be privatized entirely.    Public transportation should be financed by both subsidies and revenues.    Public transport projects should be PPP financed.    Public transportation needs to stay affordable for the average income user.    There is the need for specific public transport financing policies in Kazakhstan    and Kazakh cities. Open answer:

120 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN F) PUBLIC TRANSPORT ORGANISATION F.1 Please elaborate in your own words how public transportation is currently organised?

F.2 Please assess the following statements regarding public transport organisation: I don’t Unable to I agree agree answer Public transport organisation is currently too diversified.    One institution should organise all public transportation in Almaty.    There is need for organised public transportation tender systems.    The various bus companies should be organised and represented by an interest    group. There should be one city-wide ticketing system in Kazakh cities.    There should be more coordinated public transportation in cooperation with    alternative forms (e.g. bicycles, carsharing, …) Open answer:

G) PUBLIC TRANSPORT POLICIES G.1 Please assess the following statements regarding public transport policies: I don’t Unable to I agree agree answer There is need for specific policies in terms of …    Safety and security in public transportation    Public transport contracts    Ticketing and Revenues    Quality of services provided    Procurement of Public transport services    Subsidised financing of Public Transport Services    General financing of Public Transportation    Open answer:

H) SUGGESTIONS AND RECOMMENDATIONS F.1 Do you have explicit suggestions/project ideas/ etc. for improving of public transportation in Kazakhstan regarding the following criteria? Type of Transport Mode Frequency & Speed Number of Lines / Stops Interconnections of various Public Transport Lines/Bus Companies/… Ticketing Punctuality Technical Equipment Sustainability Relationship between Public Transportation and Individual Motorized Traffic (private cars) Organizational Form of Public Transportation Financing Concepts

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 121 ANNEX № 4: EVALUATION OF STAKEHOLDERS’ ASSESSMENT

In order to support this comprehensive policy review The evaluation of the interviews closely follows the with expert opinions, primary data was collected in structure of the questionnaire and is presented in the form of extensive one-on-one stakeholder interviews following sections. with key experts. Initially the list of candidates spanned 11 organizations and companies involved in planning and running urban public transport in Kazakhstan, 1. Involvement in Public Transportation these being. According to their respective organisations, 1. LLP «Green BUS» stakeholders’ involvement in the public transport 2. LLP «AvtoTransGas» realm covered a wide range of responsibilities and 3. LLP «AvtoAlmaTrans» competencies, including: 4. LLP «Teghis Trans» • Provision of educational services for transport 5. LLP «Bus park № 2» experts 6. «ALMATYELECTROTRANS» LLP • Running of urban public transport services (operations, management) 7. Metropolitan of Almaty city (Metro) • Formation and strengthening of regulatory legal 8. Centre of Qualification of Transport Specialists relations in (road) transport sector, improvement 9. “Kazakhstan automobile convention” (Astana) of traffic safety, quality of service, consumer rights 10. LRT Astana (Astra- Transport authority) protection 11. SPK Oral • Representation of association members Interviews were carried out between April and June Participating stakeholders in the interview process, 2017 and documented using the interview guide as thus, came from both the public transport planning provided in Appendix 3. Finally a total of 5 interviews and operations side as well as from supporting were successfully completed and evaluated. The bodies such as specific training units and members status of all contacted parties on completion of the associations/interest groups. interview process was: Despite the small sample size this spread allowed a Table 1: Status of stakeholder interviews on multi-angle view on and evaluation of the current and completion of process future situation of urban public transport in Kazakh cities. Contacted Refused Company but re- Complete participa- not trace- Figure 1: Schematic depiction of stakeholders’ sponse still tion able domains in public transport pending 6 4 1 1

PT Management and Stakeholders were successfully consulted from local PT Strategic Planning authorities, public transport companies and transport- operation related interest groups. The main aim was to collect in-depth information on expert opinions relating to the current and perceived future situation of urban public transport in Educational Support Legal / commertial Kazakhstan. Doing so by means of individual interviews Knowledge Sharing support minimized responder bias. Findings of both closed- and open-format questions are presented in the Representation of Capacity building following sections. Given the relatively small number interests of stakeholders initially contacted and the naturally lower participation rate, results must be interpreted with caution. These are not representative findings due to the very small sample size. However, general trends can be conveyed and should serve as input for further discussions on refining opinions and a shared appreciation of the current urban public transport situation and its future challenges with experts.

122 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 2: Stakeholders’ rating of proposed P/T enhancement measures

Improve public transport service levels Knowledge Sharing; Cross-learning Secure additional funding Promote more cycling in and around the city Integrate transport and urban planning Manage inner-city traffic both private and public Link suburban and urban transport networks Develop road-based transport sustainably Manage city-wide parking of private vehicles Promote low emission car zones in the city

0 = low 5 = high 1 2 3 4 5 2. Assessment of the Transport Market Figure 3: Stakeholder assessment of sustainable Situation P/T parameter importance for Almaty 2.1 Assessment of the current Transport 3,5 Market Situation 3,0 2,5 In order to promote sustainable public transport in 2,0 Kazakhstan findings from the interviews suggest that 1,5 the generic measure of improving public transport 1,0 service levels is accredited with the highest relevance. 0,5 Linked to this is also the opinion that the necessary 0 measures to do so successfully are of relevance too, including the integration of transport and urban planning, urban traffic management and the linkage of suburban and urban transport networks. Comfort of travel With specific reference to Almaty stakeholder findings Fares/Price structure Ease of interchanging Punctuality of services

suggest, that future public transport service levels will Speed of transport offer benefit most significantly from diversifying mobility (i.e. Quality of bus stops/termini

strengthening multi-modality) as well as increasing Available timetable information Frequency of services provided Overall Transport Offer (capacity) travel speeds to render urban public transport more Offer of different transport modes attractive compared to private motorized modes. Drivers/staff P/T service knowledge Average Rating Overall Average Rating

Figure 4: Stakeholders’ assessment of customer-related public transport issues 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0 Price) service offered strollers structure on board timetables information Travel Speed Availability and Availability and approachability Accessibility for disabled/elderly Comfort of travel transport network Driver friendliness/ Spatial coverage of Punctuality of service accessibility of on-trip Frequency of services Affordability (Ticketing accessibility of pre-trip Room for wheelchairs/ Personal safety at stops/ Ease of changing mode/ Transparency of ticketing

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 123 Evaluating the public transport situation from a Figure 5: Attractiveness of private car usage passenger’s point of view, stakeholders assessed the most important issue clearly being the ease of changing mode/service – a key situation that needs addressing should future urban public transport in Kazakhstan become more multi-modal. In terms of inclusion and participation in mobility stakeholders No Yes also rated affordable and transparent ticketing prices/ 50% 50% structures as well as vehicle accessibility and personal safety and security as relevant. Accompanying issues such as pre-trip timetable information was rated comparatively lower in its relevance to rendering urban public transport services attractive to Almaty citizens. In terms of the requirement for additional public No answer transport service in Kazakhstan stakeholder views 0% were heterogeneous. 40% see a need for more services, 20% see no requirement for enhancing/ extending current levels and a further 40% gave Open-format answers illustrated that owning a car no answer to this question. Open-format answers is perceived as costly, though more convenient revealed that some stakeholders would like the public compared to public transport. The negative side- transport networks in cities to be more interconnected effects of perceived increases in private car use in (between services) as well as for the stop/station Kazakh cities were also elaborated upon (increasing network to be denser for passengers. road accidents, environmental pollution, congestions). Interestingly stakeholders’ views suggest that currently the usage of private vehicles in cities is 2.2 Оценка будущей ситуации рынка less attractive than the usage of public transport. It is unclear what motivated this response, as the situation транспортной сферы can be assessed either from the private car driver’s Заинтересованным сторонам было предложе- (free road space, parking, no congestion, low fuel но принять участие в прогнозировании позиции costs etc.) or the public transport user’s perspective и оценке будущего городского общественного (affordable, frequent, reliable and interconnected транспорта в Казахстане с их точки зрения. Все transport services). Possibly the assessment in favour вопросы, касательно общественного транспорта of public transport hails not from the current public включенных в опрос, были признаны респондента- transport service levels on offer but from the perceived ми «очень важными» или «важными». Два вопроса unattractive situation for private road-based motorized были признаны «самыми важными», и таким обра- traffic (i.e. congestion in inner-city areas as illustrated зом, приоритетное внимание заинтересованных in the following figure). сторон было уделено на:

Figure 6: Almaty traffic jams render private car use unattractive*

* Source: Sultan, Y (2016) Almaty areas

124 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 7: Stakeholders’ relevance rating of issues to improve prospective P/T service levels

Development of pilot projects

Driver efficiency training (lower fuel consumption)

Greater public awareness of walking and cycling

Initiating better construction standards

Lowering GHG emissions caused by cars/traffic

Increasing modal split for public transport

Traffic-related noise reduction in urban areas

Developing an integrated public transport system

New policies regarding public transportation

0 = low 5 = high 1 2 3 4 5

1. Сокращение выбросов парниковых газов авто- Figure 8: Proportional spread of change impact мобилями; strength across all suggested future importance of 2. Создание новой политики в области обще- P/T issues ственного транспорта. strong increase strong decline (--) don’t know/ Asked to assess the perceived chance of a range of (++) 1% 5% no answer measures by 2030 stakeholder responses showed 21% that overall a moderate increase is expected by the moderate decline (-) experts participating in the interviews to be the most 6% likely situation. Анализ индивидуального распределения ответов status quo (0) moderate 18% в отношении изменения прогноза (и его влияния) increase (+) свидетельствует о том, что заинтересованные сто- 49% роны оценивают следующие аспекты как проявле- ние роста, от умеренного к сильному, к 2030 году, в свете постоянных усилий по продвижению и вне- дрению устойчивых и доступных сетей обществен- ного транспорта в Казахстане:

Table 2: Stakeholder evaluation of changes to P/T aspects in future

Issue Change by 2030 Public awareness of transport- Respondents gauge this issue to remain at the current related problems level in future, no change is expected  Quality of inner-city living/ Stakeholders foresee a moderate increase for this aspect working Greenhouse Gas Emissions Participants assessed this aspect very heterogeneously, answers ranging from a foreseen strong decline in this environmental burden to a status quo situation right through to a moderate or even strong increase, i.e.  worsening of the situation Car-induced congestion Interviewees deem this problem to either stay at current levels, or – more likely – to face a moderate increase by 2030  Road fatalities Stakeholders mostly foresee a moderate increase in this aspect Private car ownership levels Participants assessed this aspect very heterogeneously, answers ranging from a foreseen strong decline in car ownership to a status quo situation right through to a  moderate or even strong increase

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 125 Number of inner-city parking Most respondents expect a moderate increase in the spaces provision of central parking facilities for cars Operation of new P/T vehicles Stakeholders unanimously foresee a moderate increase in the operation of new P/T vehicles for urban transport Revenue generated from Participants assessed this aspect diversely, ranging parking fees from a potential moderate decline to a moderate rise in revenue generation Revenue generated from P/T Stakeholders rated this change cautiously optimistic, services their assessment ranging from maintaining the current situation to potentially seeing a moderate increase of P/T revenue Length of bus rapid transit Interviewees foresee no to moderate increases in the network length of bus rapid transit networks by 2030  Length of cycle route network Experts are of diverging opinions with regards to the development of the cycle network, some foreseeing a decline in its length by 2030, whilst others expect no to moderate increase

- strong increase - moderate increase - status quo Rating Scale Depiction   - moderate decline - strong decline Open-format questions furthermore revealed that one stakeholder deemed priority measures for public transport sharing road space with cars to be paramount.

3 Assessment of Organizational, Financial One stakeholder elaborated on the importance of assigning clear tasks and responsibilities to ensuring and Policy Issues adequate subsidies reach transport organizations providing socially significant services. Views on whether there is an overall the necessity to reform the prevailing financing situation for Furthermore financial incentives (e.g. targeted public transport in Kazakhstan diverged amongst mechanisms for concessional lending and subsidizing) stakeholders. Therefore no clear overarching expert should be devised allowing adequate purchasing opinion emerged, as some deemed reform necessary of busses for existing/new fleets and the production whilst others did not. and maintenance of these within Kazakhstan (national

Figure 9: Spread of stakeholder agreement with P/T financing statements

Public transportation should receive more government subsidies. Public transportation should be financed 100% from government subsidies. Public transportation should be solely financed through tickets and revenues. Public transportation should be privatized entirely. Public transportation should be financed by both subsidies and revenues. Public transport projects should be PPP financed. Public transportation needs to stay affordable for the average income user. There is the need for specific public transport financing policies in Kazakhstan and Kazakh cities. I agree I don’t agree Unable to answer 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

126 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Figure 10: Spread of stakeholder agreement with P/T organizational reforms

Public transport organisation is currently too diversified. One institution should organise all public transportation in Almaty. There is need for organised public transportation tender systems. The various bus companies should be organised and represented by an interest group. There should be one city-wide ticketing system in Kazakh cities. There should be more coordinated public transportation in cooperation with alternative forms (e.g. bicycles, car sharing, …) 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% I agree I don’t agree Unable to answer economy). Also the issue of addressing activities by These results suggest that the expert opinion with illegal bus carriers requires clear deterring measures regards to public transport financing deems a mixed to be adopted in the opinion of one stakeholder. financing procedure (both governmental subsidies and operational revenue) with the appropriate policy Asked to rate the following statement on public framework most suitable for financing public transport transport financing, the following picture emerged: services in Kazakhstan. Three statements received agreement ratings from Asked to elaborate on the current organizational level all participants, strengthening the view that public and state of public transport in Kazakh cities some transport should: stakeholders offered a detailed assessment of the • receive more government subsidies; situation in their opinion. In sum, bus traffic is seen as • finance itself by means of a mix of subsidies and inadequately organized, leading to delays and service revenue; disturbances. Weak organization is reported both at the local and the state level as well as within the • remain affordable to the broad public; and companies (management, vehicle maintenance). As • build upon specific financing policies. a challenge the de-valuation of Kazakhstan’s national currency as well as non-regulated fuel prices was also Disagreement was voiced with regards to rigid entire: mentioned by one stakeholder detailing that this has • government subsidising of services; and put a disproportionately high financial strain on bus • revenue-based financing of services. operators.

Figure 11 Strakeholder assessment of specific policies need I agree I don’t agree Unable to answer

Safety and security in public transportation

Public transport contracts

Ticketing and Revenues

Quality of services provided

Procurement of Public transport services

Subsidised financing of Public Transport Services

General financing of Public Transportation

0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 127 The stakeholder consultation process revealed that 4 Suggestions and there is widespread agreement that organisational reforms in the public transport sector should address Recommendations from Stakeholders issues of: In the open-format questions stakeholders specifically • centralized and specialised responsibility addressed the issues of vehicles, ticketing and for planning and overseeing urban public financing suggesting that transportation; and the • ecologically clean cars and busses should be • integration of multiple transport modes and used; unification of ticketing and tariff structures. • the ONAI (Single Transport Card for Almaty) should In terms of the need for an interest group to represent be completely developed and implemented; and the various bus companies some stakeholders felt • all revenue from public transport should flow that such an institution may not be necessary. into the city’s budget. Then revenues should be Asked to assess a range of statements relating to distributed amongst the carriers in accordance public transport policies, stakeholders’ views suggest with their correct contractual performance. widespread agreement, especially for the importance No specific comments were noted in the interviews of safety and security for passengers whilst travelling with regards to: on public transport services and for the need to subsidise public transport services. • public transport’s frequency and speed (service level); Overall it therefore emerges that experts view the • number of lines/stops (network size and density); requirement for specific policies addressing public transport issues to be of utmost importance – at the • interconnections of various Public Transport Lines/ financial, organizational, and operational level. Bus Companies (public transport association approach); • punctuality (service quality); • technical equipment (infrastructural service levels and quality); • sustainability (environmental and social concerns); • relationship between public transportation and private cars (holistic transport planning approach); and • Organizational form of public transportation (assignment of roles and responsibilities).

128 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN ANNEX № 5: PTA ORGANISATION BENCHMARKS

Transport Constituent Local City Country Governing Body Comments Authority Government Units Vienna AUT Verkehrsverbund Management City Government with Partner set-up between the three OstRegion Board composed Mayor and Executive federal states it covers, namely of 4 members Councillors, incl. for Vienna, Lower Austria and Bur- Urban Planning, Traffic genland; integrated transport al- & Transport, Climate liances in Austria are cooperative Protection, Energy and institutions by virtue of private law Public Participation contracts Sofia BGR Sofia UrbanSole proprietary Sofia Municipal Council Directorates for: Public Transport Mobility Cen- joint stock compa- Parking and Mobility tre (SUMC) re- ny with an Execu- Development and Administrative sumes certain tive Director and Activities functions Board of Directors Internal Control Marketing and Economic Activi- ties Zagreb CRO Zagrebački el- City owned and City of Zagreb Council Branch of the Zagreb Holding spe- ektrični tramvaj managed City District Councils cialized for passenger transporta- (ZET) tion in the city of Zagreb and a part of Zagreb County. It is exclusively owned by the city of Zagreb and it is mainly financed through its budget. Authority also operator, no distinction between organizational and operational level Ostrava CZE Dopravní pod- City owned and Ostrava City Council Ostrava Transport Authority op- nik Ostrava a.s. managed erates public transport in Ostra- (DPO) va. The Authority is founded and owned by the City, replacing previous number of independent operators in the region during 120 years of public transportation history. Leading Czech city for integrated transport Barcelona ESP Autoritat del Management Barcelona City Council voluntary inter-administrative Transport Met- Board composed Barcelona Metropolitan consortium set up in 1997 ropolità of 18 members/ Area representatives from Government, local administrative bodies and observ- ers from central government Bilbao ESP Bizkaio Garraio Board with 26 Basque Governement Local company with participa- Partzuergoa members Bizkaia county govern- tion of the Basque Government, Transport Con- ment Bizkaia County Government (Di- sortium of Biz- putacion Foral de Bizkaia), Mu- Municipality of Bilbao kaia nicipality of Bilbao (Ayuntamiento Other municipalities de Bilbao) and other municipalities; also operates the Bilbao Metropolitan Railway through Metro Bilbao S.A., a publicly-owned company in which the Bizkaia Transport Consortium holds 100% of the shares

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 129 Lyon FRA Sytral Supervisory Board Rhone County Members elected from County and 26 represent- Lyon Community and Urban Community atives (elected members) Marseille FRA RTM - Régie des Chairman Communaute urbaine RTM directly operates metro and Transports de la Marseille Provence tramway; Marseille is one of the Ville de Marseille Metropole few French cities to directly operate its transit network without resorting to public service delegation Perpignan FRA No information available Leeds GBR Metro West Yorkshire West Yorkshire County Metro is the passenger infor- Combined Author- Council mation brand used by the West ity (WYCA) Leeds City Council Yorkshire Combined Authority  strategic authority with powers over transport, economic development and regeneration The WYCA is also responsible for delivery of transport policies. Birmingham GBR WMCA/TfWM The WMCA's Transport for West Midlands Transport Deliv- (TfWM) is the public body respon- ery Committee sible for transport infrastructure is a 19-member and the co-ordination of public sub-committee of transport in the West Midlands the Combined Au- metropolitan county It is an exec- thority Board. utive body of the West Midlands Combined Authority (WMCA), with bus franchising (from May 2017) and highway management powers similar to Transport for London. Bristol GBR West of England Headed by elect- local authorities of Bris- substantial responsibility for Combined Au- ed Mayor tol, South Glouces- transport policy including for thority tershire, and Bath and Bristol North East Somerset Munich GER Münchner Ver- Management MVV’s associates are Responsible for Regional Public kehrs- und Tar- Board the Federal State of Ba- Transport Plan ifverbund varia, its capital Munich and the eight counties Hamburg GER Hamburger Supervisory Board The federal states Ham- Statutory commissioning authori- Vekehrsverbund burg, SchleswigHolstein ty is simultaneously also proprie- and Lower Saxony as tor of HVV well as the councils of the seven administrative districts surrounding Hamburg are associate partners of the HVV Bielefeld GER Verkehrsver- Supervisory Board 50 cities and districts So called “Zweckverband”; bund Ostwest- with two Directors, i.e. administration union; falen-Lippe each of the five ad- have devolved powers for ministrative bodies infrastructure investment local/ (VVOWL is on) with regional rail own Director Mannheim GER Verkehrsverbund Supervisory Board 24 cities and districts Local authority and transport op- Rhein-Neckar Representatives of 3 Federal States erator consortium constituent cities, district and state

130 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN Wiesbaden GER Rhein-Main Ver- Supervisory Board 11 cities Consortium of 15 regional au- kehrsverbund Representatives of 15 districts thorities and 11 municipal authorities. The responsibility for constituent cities, Federal State of Hesse district and state rail and bus transport services in the RMV network area has been assigned to RMV by law. Almaty KAZ Almaty Urban Akimat of Almaty Akimat of Almaty Only under major sectoral reform Transport Au- and with the introduction of PSO thority AUTA – under consideration by EBRD project 2009 Astana KAZ ASTRA – As- Akimat of Astana Akimat of Astana UITP capacity building in Astana: tana Transport a new transport authority was pre- Authority, under sented for the planning, manage- consideration ment and development of transport in Astana under the name ASTRA, which stands for Astana Transport Authority. It will supervise LRT, buses, school buses, city taxis and the parking system. Karagandy KAZ No information available Shymkent KAZ No designated Akimat of Shym- Akimat of Shymkent Assumes role/responsibility for authority kent controlling public transport quality; 28 operators in Shymkent, mostly bus/mini-bus; services by both types run along the same routes Pavlodar KAZ No designated Oblast authority Oblast authority ("Aki- Trams: Joint-Stock Compa- authority ("Akimat") mat") ny Pavlodar Tram Management Company, 2013 EBRD project for tram modernization; wholly owned by the Pavlodar Oblast Akimat (the “Oblast Akimat”) Taraz KAZ No information available Oskemen KAZ No designated Akimat Public transport by bus state separate author- owned; EBRD project 2017 to ity improve transport quality and regulatory framework Semey KAZ No designated Akimat Public transport by bus state separate author- owned; EBRD project 2017 to ity improve transport quality and regulatory framework Aktobe KAZ No information EBRD CNG bus project; state available owned public transport enterprise Oral KAZ No information available Lodz POL No designated Municipality, Head City of Lodz separate author- of Department ity – municipally managed Katowice POL No designated Municipality, Head City of Katowice Municipality also transport oper- separate author- of Department ator ity – municipally managed

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 131 Lisbon PRT Area Metropoli- Metropolitan Assembleia Metro- Coordinates public transport tana de Lisboa Committee (exec- politana (Metropolitan provision in the Lisbon area since utive organ), incl. Assembly) is the leg- 2004; Metro is fully state owned 18 Presidents of islative organ of the the City Halls Grande Area Metropol- itana de Lisboa and is composed by the chosen members of Mu- nicipalities Assemblies of the City Halls Amsterdam NEL Vervoerregio 15 municipalities in the P/T only one aspect, others in- Amsterdam region clude: economy and tourism, regional housing and youth welfare; retains role of regional transport authority. Focus: regional traffic and transport related policies, including planning and financing of regional infrastructure for all modes of transport (public transport, road, bicycle), for traffic safety and smart mobility solutions

132 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN ANNEX № 6: CASE STUDY LYON (FRANCE)

Population: Structure: Size: Greater Lyon Region: Greater Lyon Region: 57 Lyon / Greater Lyon Region: 1.250.000 inhabitants communities France 515km2 Urban Lyon: Urban Lyon: 9 districts Urban: 6km2 Population Density : 2.425 (Arondissement)

Overall Public SYTRAL was founded in 1985 for the means of organizing and financing public transportation Transport in the Lyon communities (TCL). Its managerial staff is composed of elected members from the Organisation Rhône County and 16 elected members from Lyon Urban Community. In 2013, the SMTR was founded as a re-organisation of smaller departments in the Rhône-Alpe region. Stakeholders SYTRAL (Syndicat Mixte des Transports pour le Rhône et l’Agglomération Lyonnaise): Urban transportation in Lyon Urban area (Transport en Commun Lyonnais – TCL) SMTR (Syndicat Mixte des Transports pour le Rhône, qui regroupe le département du Rhône, la Communauté d’Agglomération Villefranche Beaujolais Saône, CAVBS et la Communauté de Communes de l’Est lyonnais, CCEL) : responsible for passenger railway services and school bus services Public Transport Keolis Lyon: Concession for TCL Lines from 2017 to 2022 Service Providers: KEOLIS PMR Rhône: Concessions for Optibus from 2017 to 2021 (Optibus are special public transport services for people with disabilities) Cars Berthelet: Concessions for CCEL (Communauté de communes de l’Est Lyonnais) until 2021 Autocars Planche, Transdev and Autocars Maisonneuve share concessions for the “Cars du Rhône” until 2021 CarPostal Villefranche-sur-Saône: concession for postal services « Libellule » until 2022 Veolia Transport : Concession for RhônExpress until 2040 Network & Structure

Public Transport Metro: 4 lines,178 cars, 30.3 km and 43 stations Indicators Funicular: 2 lines, 6 cars and 1.2 km Tramway: 4 lines, 73 trams, 48.8 km and 81 stations Trolleybus: 7 lines, 120 buses and 45 km Bus & Minibus: 98 lines, 860 buses and 1142 km School Bus: 141 lines, 112 buses and 1060 km Passengers per day: Metro: 655.588 Tramway: 209.371 Bus: 498.762 Funicular: 11.833

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 133 Internal Organisation of SYTRAL

Public Transport The 1982 Transport Law requires that priority is given to the promotion of Public Transportation. Financing In 1973, the Transport Tax (Versement Transport – VT) was introduced by law, applying a special tax in urbanized regions and cities. The money is directed towards the local public transport authorities (AOT - autorité organisatrice de transport urbain) in order to co-finance investments in public transport infrastructure and services. The Financing Agency of Transport Infrastructure in France (L’Agence de financement des infrastructures de transport de France - AFITF) coordinates funding for public transport infrastructure. The funding is derived from dividends from the motor highways. As the following figure shows, the Transport Tax contributed to SYTRAL’s financing in 2010 with 36%. Local authorities subsidize public transportation services with 21% and revenues from customers account for 24% of financing for the transport services

SYRTAL's Budget 2010 Revenues Mio. € % Customers 165.100.000 24% Local authority contribution 141.000.000 21% Loans 103.300.000 15% Transport tax 244.100.000 36% Miscellaneous 29.900.000 4% TOTAL revenues 683.400.000 100% Expenses Mio. € % Administrative & Miscellaneous 9.000.000 1 % Operating Expenses 333.100.000 49 % Loans 141.300.000 21 % Investments 200.600.000 29 % Total Expenses 684.000.000 100 %

134 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN SYRTAL’s tasks: Defines and implements public transport policy, the service and fares. Finances the system and its development. Delegates the running of the system to external operator: Monitors the operator’s performance and sanctions non-compliance. Supervises infrastructure and equipment projects. Performs traffic monitoring and client surveys. Owns the rolling stock, buildings and equipment Public Transport Development

Environment In 2003, 7.6 Mio. tons of CO2 were produced in the Greater Lyon Region (= 6.1 Mio. tons per inhabitant) Road transportation accounted for 30% of CO2 emissions in 2006 91% of these are produced by private transportation (cars), 9% by Public Transportation

SYTRAL offers over 7500 parking spaces in 22 park + ride facilities/car parks The city of Lyon prepared a Climate Plan and is dedicated to implement it. Alternative means of “Pédibus” – the walking school bus transportation Was established in 2002 in cooperation with parents and schools; today, 76 schools are involved in the project. Parents accompany their children to school on foot on 152 pre-defined routes throughout Lyon. Vélo’v Since 2005 the City of Lyon provides approx. 4000 bicycles in the Greater Lyon Region; since then an 80% increase in bicycle use has been noted “CoVoiturage Grand Lyon” Promotion for car-sharing of employees for regular work routes. 400 companies are involved and 2.200 employees have signed up. “AutoLib” Carsharing – 70 vehicles available in 22 dedicated car parks

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 135 ANNEX № 7: NATIONAL TRANSPORT PLANNING POLICIES PLANS

Regional/Local Level (Benchmark National Level Overall allocation Cities) of responsibilities Land Use, Urban Land Use, Urban Plan- Transport for Public Transport Transport policies & Planning, (Public)

Country ning, (Public) Transport policies & planning regulations Transport Planning Planning Documents regulations Documents The national govern- Austrian Federal Law Traffic Master Plann/a Niederösterreich ment provides the reg- concerning the organiza- 2025 Strategy for Transpor- ulatory framework for tion of local and regional Transport Operational tation 2010 transport related issues public transport (Öffentli- Programme (TOP) for Mobility Concept The regional govern- cher Personennah- und the period 2007-2013 Niederösterreich ments are responsible Regionalverkehrsgesetz 2030+ 1999 – ÖPNRV-G 1999). for transport policies, Regional Transport transport planning and Kraftfahrliniengesetz Concepts infrastructure develop- (KflG): Bestellung von Strategies of devel- ment Verkehrsdienstleistun- opment for five key gen durch die regionalen Austria’s entire public regions 2024 in Nied- Gebietskörperschaften transport system is run erösterreich by eight transport asso- National Railway Law General Transport ciation in accordance 2003 Strategy Burgenland Austria with the country’s ad- Gelegenheitsverkehrs- 2014 ministrative structure, gesetz each having a joint tariff Emission’s Program National and regional system Burgenland 2015 procurement laws Transport associations are responsible for organizing PT services, carrying out service contracts, overall PT planning and coordination as well as tariffs and revenues

The council of ministers Road traffic law – ap- General Transport Mas- n/a Sofia City Strategy of Bulgaria is responsi- proved and in force since ter Plan (SCS) 2003 ble for transport policies 01.09.1999; National Strategy Master Plan of the city The national level pro- Road transport law – ap- Transport Sector 2000 of Sofia and Sofia Mu- vides the basis for any proved and in force since National long-term nicipality 2004 transport policy and 17.09.1999; programme for promo- Program Action Matrix transport plans Railway transport law – tion of the biofuels use for the Sofia Strategy The regional/municipal draft submitted for ap- in the transport sector level is responsible for proval to the National 2008-2020 creating own transport Assembly National Strategy for master plans and organ- Sustainable Develop- izing the public transport ment (NSSD)

Bulgaria sector Launch of Bulgarian Cycling Strategy (Cy- cling policies not yet included in regional development plans) Strategy for development of the transport infrastructure in Bul- garia towards 2015

136 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN on national level: Minis- Road Transport Act (OG Transport Development n/a Spatial Plans try of Infrastructure (Min- 178/04, 48/05 and Strategy of the Repub- City Master Plans istarstvo prometa, po- 151/05) lic of Croatia 2014 – City Transport Policy morstva i infrastructure) 2030 Road Traffic Safety Act with Parking Policy in- lack of co-ordination (OG 105/04) Tourism Development cluded between local, county Railway Act (OG Strategy 2020 and national levels 123/03, 194/03 and municipal authorities are 30/04) responsible for public Air Traffic Act (OG transportation, but have 132/98 and 178/04) no authority regarding Fund for Environmental regulations Protection and Ener- gy Efficiency Act (OG

Croatia Croatia 107/03, 144/12 Act on Biofuels for Trans- port Act on promotion of clean and energy efficient vehicles in road transport (OG 127/10) Regulation on standards used in public procurement procedures for road vehicles (OG 11/14) Funding: State budget Resolution of 12 June Conception of State Regional Sustainable Energy and budgets of the re- 2013, No. 449 on the Tourism Policy in the develop- Action Plan (2020) gional and local author- Transport Policy of the Czech Republic for ment Policy the Statutory City of ities, co-financing from Czech Republic for 2014 2014 – 2020 of the Czech Ostrava European funds through – 2020 with the Prospect Republic Strategic Framework Local Public Transport Operational Programme of 2050 for Sustainable devel- Regional Plans for the Transport sector National Reform Pro- opment Transport Policy-making on na- gram International Competi- Plans tional and regional level State Policy for the Envi- tiveness Strategy

Czech Republic Public Transport organi- ronment Strategy of Regional zation on municipal level State Energy Conception development for 2014 Raw Material Policy - 2020 Ecological Tax Reform National Strategy for Road Traffic Safety Transit Authorities (‘Au- 1982 Transport Law National low-carbon 1997 Lyon Lyon: Development torités organisatrices’) 1996 Air Quality and En- strategy (SNBC) (2015) Agglomer- Plan (7 Years); Cli- are in charge of organ- ergy Rational Use Law The 2030 Agenda and ation Urban mate Plan Greater izing Public Transporta- Trips Plan Lyon 1999 Loi «Voynet» Sustainable Develop- tion; the Transit Author- LOADDT ment Goals Perpignan: ity decides whether to National Strategy for In- Plans de Déplace- operate PT on its own 1999 Loi «Chevène- telligent Transport Sys- ments Urbains” (Ur- (“Régie”) or delegate ment» Coopération in- tems ban Mobility Plans - this task to another Pri- tercommunale UMPs) vate Company 2000 Urban Solidarity Promoting sustainable France and Renewal Law mobility –cycling The tramway revival in France national strategy of ecological transition towards sustainable development (SNTEDD) 2015-2020

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 137 devolved powers for Federal Transport Plan Regional Development Regional City Development public transport to the 2030 Plans Public Trans- Concepts, incl. Trans- federal states and within Road Traffic Act Cycling and pedestrian port Laws port Development these to the respective (each region Plan Passenger Transporta- infrastructure Planning communes has their own tion Law (Personenbe- Guidelines Rail-based Local law; altogeth- förderungsgesetz - PBe- Transport Plan er 16 laws on fG) Regional Public Public Trans- Transport Plans General Railway Law (All- portation) gemeines Eisenbahnge- Local Public Transport Region- setz –AEG) Plans (Nahverkehr- al Laws Germany spläne) on School Transport Regional Public Services Transport Plans Region- al Laws on street-bound public transportation Legislative powers lie Закон Республики Kazakhstan Strategy Kyzylorda: Master Plan for the primarily with the nation- Казахстан от 4 июля 2050 (2012) Resolution Almaty Development al government 2003 года № 476- National Transport Pol- of the Akimat 2002 II Об втомобильном icy Kazakhstan (2010- of Kyzylorda Sustainable Transport транспорте (National 2014) city of Kyzy- Strategy for Almaty Law on motorized trans- lorda region (2013-2023) portation, 4/7/2003) dated April Almaty Transport In- 6, 2012 No. Resolution of the Gov- tegrated Approach 3438 on ernment of the Republic (2017) of Kazakhstan No. 767 of the estab- Astana Master Plan July 2, 2011 On approval lishment of 2013 of the Rules for the trans- a tariff for port of passengers and regular pas- Strategic Plan of the luggage by road senger and Department of Archi- luggage tecture and Urban Resolution of the Govern- transport in Planning of the Kar- ment of the Republic of the city of aganda region for Kazakhstan No. 1014 of Kyzylorda 2010-2014

Kazakhstan September 5, 2011 On approval of the Rules for Taraz city Master Plan subsidizing, at the expense Aktobe Master Plan of budget funds, losses of carriers connected with the implementation of socially significant passenger transportations Resolution of the Gov- ernment of the Republic of Kazakhstan of Febru- ary 28, 2008 No. 203 On approval of the Rules for the Technical Operation of Motor Vehicles On the national level, Environment and Plan- National Traffic and Trans- n/a City Mobility Plan the government has the ning Act (2017) port Plan 2001-2020 City Bicycle Plan (5 authority over the road Traffic and TransportNota Mobiliteit (2004) years) and roal infrastructure Planning Act (“Planwet ‘Towards reliable and system and railway op- Verkeer &Vervoer”) predictable accessibility; erations

Netherlands Infrastructure (Plan- Mobiliteitsaanpak (2008) ning Procedures) Act ‘Safely and smoothly (“Tracéwet”) from door to door.

138 POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN On the regional and mu- Infrastructure (Plan- Mobiliteitsbeeld 2016 nicipal level, bus, tram- ning Procedures) Act National Policy Plan on way and other urban (“Tracéwet”) Traffic and Transport transport modes are or- Passenger Transport Act (NVVP)

Netherlands ganized 2000 1991 Environmental 1991 Environmental Pol- Motorway Building Pro- n/a City Master Plans Policy icy gramme Regional Operation- 1994 Act on Toll Motor- 1994 Act on Toll Motor- Green Paper on Urban al Programme (ROP) ways ways Transport 2007 2007 – 2013 1995 Transport Policy 1995 Transport Policy Greenways in Poland, Act on Rail Transport of Act on Rail Transport of Ministry of Infrastruc- 28th March 2003 and 28th March 2003 and the ture and Development, the Decree of the Min- Decree of the Minister of Warsaw 2014. ister of Transport from Transport from 30th May Transport Development Poland 30th May 2006 2006 Strategy for 2007 -2013 2005 Strategy on the restructuring of Polish Railways National Transport Fund (National Road Fund + National Railway Fund) The national administra- Estatuto das Estradas da National Road Safety Bill of Trans- Metropolitan Mobil- tion lays the ground for Rede Rodoviária Nacion- Strategy 20 port for the ity Plans (developed financing and strategy al (2015) 08-2015 metropoli- by the Metropolitan On the local level, met- Lei 13/2006: Transporte tan area of Transport Authorities) ropolitan transport au- colectivo de crianças Lisbon, the elaboration thorities are responsi- Lei 28/2006 : TRANS- of the urban ble for Public Transport GRESSOES EM TRANS- mobility plan planning, the network PORTES COLECTIVOS and the mo- planning incl. parking, DE PASSAGEIROS

Portugal the integration of trans- bility survey Decreto-Lei n. 60/2016, port modes de 8 de setembro (Serviço Publico de Transporte de Passageiros Flexível) Lei n.º 7-A/2016, de 30 de março (Transporte de Passageiros) The local/municipal level Ley de Ordenación del Strategic Infrasutruc- Ley de Bas- Cycling Strategy (Bar- has the responsibility for Transporte Terrestre ture and Transport es de Rég- celona) transport services within (LOTT), 1987 Plan 2006-2020 (Plan imen Local Masterplan for Mobil- its geographical/admin- Ley de Movilidad Sos- Estratégico de Infrae- (1985) ity Management (Bil- istrative boundaries tenible structuras y Transporte bao) (PEIT)) On the municipal level, Real Decreto-Legislativo Spain Autoridades del Trans- 2/2004 Enviornmental Strate- porte Publico (ATP) or- gy (Estrategia de Me- Ley Reguladora de las ganize public transpor- dio Ambiente Urbano Bases del Régimen Lo- tation on behalf of the (EMAU)) cal 7/1985 local administration devolved powers for lo- National Planning Policy Air Quality Plan Local Trans- Core Strategies for fu- cal public transport to Framework National Cycling Strat- port Plans ture development the councils/boroughs Local Transport Act egy City Region Economic growth 2000/2008 Towards a Sustaina- Transport strategies/plan (20 Strategies (20 Year Plan)

UK Policy Paper on Local ble Transport System: Transport Supporting Economic Year Plan) Air Quality Action Plan DfTs Cycle Infrastructure Growth in a Low Carbon Strategic Low Emission Strate- Design; hierarchy of pro- World (2009-2019) Transport gy (5 Year Plan) vision Plans

POLICY REVIEW OF THE DEVELOPMENT OF THE PUBLIC TRANSPORT SECTOR IN KAZAKHSTAN 139