Report No. PID8318

Project Name Russian Federation- Urban Transport (@). Project

Region Europe and Central Asia Region

Sector Urban Transport

Public Disclosure Authorized Project ID RUPE46061

Borrower(s) RUSSIAN FEDERATION

Implementing Agency Address CITY OF MOSCOW Project Implementation Unit 29, Prospekt Vernadskogo, #804 Moscow 117331, Russian Federation Contact Person: Ekaterina Popova Tel: (7-095) 138-23-80 Fax: (7-095) 133-40-39 Email: [email protected]

Public Disclosure Authorized Environment Category B

Date PID Prepared January 29, 2001

Projected Appraisal Date July 2000

Projected Board Date February 6, 2001

1. Country and Sector Background Main Sector Issues.The project will address a number of issues that will need to be resolved or mitigated to ensure maximum project success. These are described below.Increasing . Traffic conditions are deteriorating in Moscow and will continue to deteriorate rapidly unless a number measures are undertaken to counteract the problem. While peak hour Public Disclosure Authorized traffic conditions have been poor on several road links radiating from the center and in the central area of the city for a few years, a more recent phenomenon is the growing severity of the problem over longer periods of the day. Travel speeds have halved on some routes, and traffic backups spurred by traffic incidents combined with heavy traffic flows are becoming more frequent. Several road links are experiencing substantial congestion over many hours. As traffic volumes increase and as these road links reach their practical traffic carrying capacity, this congestion is likely to increase at a rate greater the proportional increase of traffic volumes. The project is designed to provide at least a few years relief to the situation while a more inclusive strategy for addressing the problem can be devised as part of the project.Poor Road Safety. While traffic accident data has not been compiled at this time, it is clear from incidental reports that Moscow is experiencing a high accident rate, both in deaths and in total accidents. Substantial funding has been devoted to Public Disclosure Authorized upgrading the outer (MKAD) and other arteries, including the provision of barrier medians, partially in response to these high accident levels. Treatment of pedestrian crossings and pedestrian safety zones in and around bus and tram stops is also frequently deficient. No systematic monitoring and assessment of the frequency, cause, and location of accidents is being undertaken in the city.Fragmented and Weak Traffic Management Institutions. The traffic management function is scattered across a number of entities either within or closely associated with the City government. These include the traffic police (GIBDD), the city roads departments (DORINVEST), a traffic institute (Mosgortransniproject) which is associated with the operating surface transit company (Mosgortrans), the Transportation and Communications Department, and Genplan (the master planning institute associated with Moscow Architecture Committee. No single entity has a sufficient range of responsibilities, authority, or staff capabilities to conceptualize, design, implement, and operate a traffic management program for the city. This is a major deficiency which must be addressed to assure the sustainability of the project, and more importantly, for the long-term ability of Moscow to address traffic problems and issues.Poor Traffic Enforcement. The traffic police force suffers from poor morale and a poor public image. This is partially due to poor pay levels and practices by the on-street force that do not appear to many to be addressing the primary enforcement functions of enhancing safety and managing traffic incidents. Moreover, the traffic police are heavily involved in maintaining and operating the traffic signal system and other traffic management activities that typically would be the responsibility of a civilian operation in most western market-economy cities. A substantial reorientation of the traffic police mission and focus is required.Inadequate Strategic Transportation Planning. Transportation planning in Moscow has a tradition of being part of overall physical planning for the city dominated by architects and civil engineers. The principal strategic transportation planning function is handled by Genplan, an institute associated with the Moscow Architecture Committee. The Transportation and Communications Department also has a transportation planning function with particular reference to operationally oriented issues, including regulation of and contracting with taxis, para-transit, and the public transport fleet. Overall, transportation planing in the city exhibits a capital intensive infrastructure focus with no clear overall strategy of optimizing investments in relation to available resources. Schemes worth several billions of dollars have been proposed with no clear overall sense of priorities. The transport planners also do appear to be giving due regard to devising strategies to management travel demand in relation to the supply of transportation infrastructure. Taxation, fee, and pricing measures to restrain private vehicle ownership and use are not actively being advanced. Moreover, staff in both Genplan and the Transportation and Communications Department do not appear to have the professional training and experience to adequately address the scale of problems facing Moscow.Government StrategyThe Moscow government has embarked upon an ambitious transport infrastructure investment program entailing the expenditure of hundreds of millions of dollars equivalent annually to address transport problems. The City is currently spending a high proportion of available funds on completing a major upgrade of the existing outer ring road (MKAD) that encircles most of the administrative area of the city. The city also wishes to complete a "Third Ring" road which lies between the outer ring and an inner ring road called the . This third ring is conservatively estimated to cover over $4 billion. Conversely, the city currently does not appear to be devoting enough attention and resources to traffic management measures, to the surface transit fleet, and to the full development of its transportation planning, traffic engineering, and traffic policy resources. In short, the Moscow City strategy up to the present has been one of attempting to build its way out of the problem through the supply of expensive transport

- 2 - infrastructure. There is an increasing awareness, however, that this approach will not succeed, and that more attention must be directed to the demand side through traffic restraint measures, and better utilization of existing resources through traffic management schemes and surface transit priority measures.

2. Objectives Moscow City, with a population of about 9 million, and a suburban population of about 4.5 million, ranks among the largest cities of the world and is the largest urban agglomeration in Europe. Moscow has one of the largest and the best patronized metro systems in the world with over 9 million passengers a day. Combined metro and surface transit ridership exceeds 12 million daily trips. Up to recently the public transport system accommodated over 85t of all motorized trips in the city. However, the city is experiencing an explosive growth in private vehicle ownership, increasing from about 800,000 vehicles in 1990 to over 2 million today. Travel speeds have declined sharply and this, in turn, has had an adverse impact on surface public transport operations and environmental conditions. Mitigating or reversing these adverse trends is important as Moscow is by far the most important governmental, commercial, educational, and cultural center in the Russian Federation. More recently, the City has become a major banking and service center. This type of economy is particularly dependent upon a good and reliable transportation system to enhance and sustain continued economic growth.The city is not well equipped institutionally to handle the deteriorating traffic situation. Both the transportation planning and traffic engineering operations are scattered throughout the city government, and staff are not properly trained and sufficiently exposed to current planning and traffic engineering techniques. Current attempts by the city to spend large amounts on an extensive transportation infrastructure program, will not resolve the problem.The project objectives are to:(a) Improve the institutional capacity of transport agencies to (i) comprehensively plan and program transportation improvements, (ii) design, implement, and operate traffic management schemes, and (iii) enforce traffic regulations with a view to enhancing safety and managing traffic incidents;(b) Reduce traffic congestion in the Central Area on selected road links; and (c) Improve traffic safety;

3. Rationale for Bank's Involvement The Bank can provide substantial value added in support of the proposed project, including the following:(a) Institutional Development - The Bank has had extensive worldwide experience in preparing and implementing urban transport projects in major urban areas that have multiple agencies concerned with traffic and transportation problems. The Bank is accustomed to working across these institutional boundaries under a single project framework and in providing a catalytic role in brining together all concerned agencies to meet project objectives. This activity has been and will continue to be particularly important in the current project.(b) Economic Analysis Including Investigation of Alternatives - The Bank also has had extensive experience in assisting borrowers in exploring alternative solutions to complex traffic and transport problems. Preparation of the proposed project requires numerous choices to be made in seeking to meet the project objectives. This kind of economic analysis is not well developed in .(c) Transportation Planning - The Bank has assisted many borrowers in designing and undertaking urban

-3 - transportation plans, and is aware of the pitfalls of this type of undertaking. Particularly important is the importance of seeking and gaining stakeholder commitment to the planning process to assure the practical implementation of plan proposals. The Bank also experienced in relating planned expenditures to available resources and in broadening the plan perspective to include demand management, policies, and institutional considerations. (d) International Procurement - Competitive international procurement is still relatively new to Russia and to Moscow. This is particularly true with regard to procurement of sophisticated equipment like traffic signals equipment proposed under the project. The Bank can provide valuable guidance and advice in this aspect of the project.(e) Catalyst for Donor Assistance - The Bank has and continues to be of assistance in obtaining and coordinating donor assistance for the project. To date the Bank has assisted in securing grants from the UNDP, and agencies of the French, Finnish, American, and British governments worth over $2 million.(f) International Exposure - Beyond the financial benefit of donor assistance, the Bank can assist the City in gaining important and relevant international exposure to important organizational and technological innovations that could be applied in the city. Senior Moscow officials have traveled to Helsinki and to the United States on carefully designed study tours. (g) Demonstration Potential - By virtue of its widespread operations in Russia and in other countries which have historically related to Russia, the Bank is well positioned to spread the demonstration potential of the proposed project to other mid-to-large sized cities in the region. This is particularly the case as Moscow has traditionally been viewed as a leader in the region.

4. Description

A. Infrastructure - including construction of a wider road over rail Donbasky Bridge to alleviate a major traffic bottleneck on the Varshovskoye Road corridor. B. Comprehensive Traffic Management Schemes --including, interalia, improvements, traffic signals, and medians along the 18 kilometer Varshovskoye corridor. C. Public Transport Priority Demonstration Project - including traffic engineering improvements to the Shelkovskoye Corridor (about 15 km radiating eastward from the Central Area to the outer ring road) giving priority treatment to surface transit vehicles and selected amenities to transit passengers D. Traffic Enforcement - including a traffic enforcement training program supported by related equipment procurement focusing on accident reduction and efficient management of traffic incidents (accidents), E. Pedestrian Underpasses - along the Garden Ring Road and the Varshovskoye and Shelkovskoye corridors. F. Institutional Development for Traffic Management - creation of a Traffic Management Center with suitably defined duties and authority, adequate staffing and facilities, and training programs G. Planning and design of the Garden Ring and Central Areas schemes H. Surface Transit and other studies to be determined.

5. Financing Total ( US$m) Government 63.2

- 4- IBRD 60.0 IDA 0 Total Project Cost 123.2

6. Implementation A project implementation unit has been established to manage the overall project. Once the proposed Traffic Management Center has been established, it is expected that this unit (possibly with the PIU subsumed within its structure) will assume overall project management responsibility. It is also expected that the city roads department (Dorinvest), the traffic police (GAI), and possibly additional agencies will share project implementation responsibilities consistent with their functional responsibilities within the city government.

7. Sustainability F: Sustainability and Risksl. Sustainability: Project sustainability is largely dependent upon establishing a Traffic Management Center with suitable defined responsibilities, authority and staffing both to implement the project and to carry out the traffic management function for the City of Moscow. Along with the establishment of a suitable unit, substantial inter-organizational cooperation will be required to assure project sustainability. Sustainability would also be enhanced by strengthening the transportation planning function within the City government.

8. Lessons learned from past operations in the country/sector The proposed project will be the first in Russia focusing on urban traffic management and the first project focusing solely on the City of Moscow. The ongoing Bridge Rehabilitation Project has a $50 million component directed at Moscow. Moreover, there are currently no projects in the ECA region focusing principally on urban traffic management. The Budapest urban transport project has a small component focusing on implementing a parking control policy The Bank, however, has had extensive experience with projects that have an urban traffic management focus, and a number of additional projects are in the development stage. Almost without fail the principal project problems revolve around the establishment of suitable traffic management organizations with adequately defined powers and responsibilities. Typically the traffic management function is fragmented across several institutions, staff levels and funding is inadequate, and staff lack adequate training and experience. While these problems have been recognized at the outset of project preparation activities, the required institutional changes have been difficult to bring about within the time frame of Bank supported projects. To counteract this problem on the proposed Moscow Project, a number of measures have been instituted as follows:(a) "up front" study tours involving senior Moscow Officials traveling to Helsinki Finland and to five United States cities were arranged during the project preparation period. (b) Finnish advisors (grant funded) were deployed during the project preparation period to offer institutional recommendations based on their practical experience, The Deputy Director of the Helsinki Traffic Planning Department was on assignment for 16 months. (c) The city has prepared draft decrees and charters establishing a proposed Traffic Management Center

9. Program of Targeted Intervention (PTI) No

- 5 - 10. Environment Aspects (including any public consultation) Issues No major issues

11. Contact Point:

Task Manager Richard C. Podolske The World Bank 1818 H Street, NW Washington D.C. 20433

12. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop

Note: This is information on an evolving project. Certain components may not be necessarily included in the final project.

This PID was processed by the InfoShop during the week ending February 2, 2001.

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