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World Bank Document PERU LIMABUS TRANSPORT Project Concept Document Latin America and Caribbean Region Public Disclosure Authorized LCSFT Date : January 15, 2002 Team Leader : Paulus A. Guitink Sector Manager/Director : Jose Luis Irigoyen Sector(s) : Roads and highways (70%), Sub-national Country Manager/Director : Marcelo Giugale government administration (30%) Project ID : P035740 Theme(s): Administrative and civil service reform (P), Lending Instrument: Specific Investment Loan (SIL) Access to urban services for the poor (P), Pollution management and environmental health (S), Environmental policies and institutions (S), Other social protection and risk management (S) Global Supplemental ID: P074021 Team Leader: Pierre Graftieaux Sector Manager/Director : Jose Luis Irigoyen Sector(s) : General transportation sector (60%), Lending Instrument: Specific Investment Loan (SIL) Sub-national government administration (30%), Health Public Disclosure Authorized Focal Area: G (10%) Supplement Fully Blended? Yes Theme(s): Access to urban services for the poor (P) , Other urban development (P), Gender (S), Pollution management and environmental health (S), Regulation and competition policy (S) Project Financing Data [ X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Project Cost (US$m): $133.93 Cofinancing: Yes Total Bank Financing (US$m): 40.00 Has there been a discussion of the IBRD financial product menu with the borrower? Yes No Borrower Rationale for Choice of Loan Terms Available on File: Yes Public Disclosure Authorized Proposed Terms (IBRD): Commitment fee : 0.85% Front end fee (FEF) on Bank loan: 1.00% Financing Plan (US$m): Source Local Foreign Total BORROWER 46.00 0.00 46.00 IBRD 40.00 0.00 40.00 INTER-AMERICAN DEVELOPMENT BANK 40.00 0.00 40.00 GLOBAL ENVIRONMENT FACILITY 7.93 0.00 7.93 Total: 133.93 0.00 133.93 Public Disclosure Authorized Borrower/Recipient: GOVERNMENT OF PERU Municipality of Metropolitan Lima (MML) Responsible agency : PROTRANSPORTE LIMA Address: Avenida Aramburu No. 166 - 5, Miraflores, Lima Contact Person: Julio Pflucker, Executive Director Tel: 51 1 421 7473 Fax: 51 1 421 8512 Email: [email protected] Other Agency(ies): FONAM (Fondo Nacional del Ambiente), implementation unit for the GEF project Address: Calle Hermanos Quinteros 103. Urb. La Castellana Surco. Lima 33. Contact Person: Alberto Gonzales Director Ejecutivo, FONAM Tel: 51 1 449-6200 Fax: 51 1 449-6200 Email: [email protected] Project implementation period : 4 years (2003-2008) OPCS PCD Form: Rev. March, 2000 - 2 - A. Project Development Objective 1. Project development objective: (see Annex 1) The main objective of the project is to establish an efficient, reliable and safe mass rapid transit system by implementing and operating high capacity buses in segregated bus corridors – COSAC -, which will improve public transport of Metropolitan Lima population, especially for the low-income population of the peri-urban poor neighborhoods. To achieve this, its specific objectives would be to: (i) help strengthen the Municipality of Lima’s planning, regulatory, administration, and operation capacity of public transport provision for Lima and Callao (Metropolitan Lima) in the medium and long-term; (ii) rehabilitate and improve the existing road infrastructure, with emphasis on rehabilitation/construction of segregated bus corridors and feeder bus roads; and (iii) enhance transport and environmental conditions by improving traffic management and safety, reducing air pollution and improving conditions for vulnerable road users, such as pedestrians, bicyclists and mobility constrained persons. The objectives of this operation will be achieved through physical road infrastructure interventions, rationalization of road space, and through technical assistance for institutional strengthening of the Municipality of Lima to reduce the oversupply of public transport which results: (i) in large inefficiencies in public transport provision; (ii) urban congestion and adverse environmental and safety impacts; (iii) irrational and inefficient use of scarce road space; (iv) predatory and counterproductive competition; and (v) low average speeds and long travel times. The segregated bus corridor system, with larger and cleaner vehicles, operated through well-enforced private sector concessions will: (i) increase service efficiency and reduce GHG and local emissions per passenger-km; (ii) increase the service quality and reduce travel times; (iii) rationalize public space consumption by various transport modes; and (iv) prioritize public transport. It is expected that the proposed activities will yield significant benefits to the urban transport sector, including reduction of traffic congestion and improved traffic flow for all vehicles reducing emissions per vehicle-km; improved road safety by eliminating predatory driving behavior of public transport vehicles; improved financial sustainability of the public transport system; improved economic efficiency and competitiveness of the city through reduced travel times; and provision of better accessibility to low-income commuters. - 3 - 2. Global objective: (see Annex 1) The parallel GEF funds will help facilitate greenhouse gases reduction from ground transport in the Metropolitan Area of Lima-Callao through contributing to the promotion of a long-term modal shift to more efficient and less polluting forms of transport, such as non-motorized transport and high-capacity public transport vehicles operated on segregated busways. The project GEF specific objectives are: (i) rationalization of public transport capacity by providing financial incentives (Credit Guarantee Fund) to retire old buses; (ii) consolidation of the bikeways pilot project developed in Lima North Cone mainly through the rehabilitation and extension of the existing bikeways; (iii) delivery of an institutional strengthening program on sustainable transport, targeting municipalities and institutions dealing with environmental issues and/or transport planning; and (iv) to assess and monitor the GEF project global consequences. In addition to GHG, the transport sector contributes to the emission of air pollutants like SOx, CO, PM2.5 and NOx. NOx together with VOCs lead to the formation of smog or tropospheric ozone (O3). SOx and NOx contribute indirectly to ambient PM2.5. Reductions in vehicle-km will reduce emissions of urban air pollutants and reductions in fuel-use per passenger km will significantly reduce emissions of urban air pollutants from uncontrolled or poorly controlled vehicles, as are the majority of public transport units. 3. Key performance indicators: (see Annex 1) To ascertain whether or not the project has achieved its development objectives, the following indicators would have to be achieved (more specific performance indicators are included in Annex 1, Project Design Summary): Limabus Transport IBRD/IDB loan Creation of an efficient segregated bus corridor system for Metropolitan Lima with a length of 24 km. Improved quality of feeder (access) roads to the bus corridor system. Improved level of comfort for passengers, to be monitored by biannual scorecards (see section E.6). Reduced average travel times for low-income commuters using public transport in the area of influence of the mass rapid transit system (in hours/person/day). Reduction of operating costs in traffic corridors (in soles/bus-km or preferably soles/passenger-km). Improvement of the bus system energy-efficiency (in liters of diesel per bus-km or preferably passenger-km). Reduced road accident rate in the segregated bus corridors. Integrated tariff feeder-trunk structure at competitive level. Introduction of public transport emission standards. Improve air quality in the areas served by the project. Establishment of air quality monitoring mechanism. Improved accessibility for poor and very poor households to job opportunities, social services, etc. - 4 - Effective traffic management and enforcement measures planned and designed by ML. GEF Grant Public policies incorporate themes of air pollution reduction by influencing on policy decision makers, strengthening government technical teams on air pollution and sustainable transport issues, and establishing alliances with the civil society. Establish modes of surveillance and monitoring to measure the effectiveness and facilitate the dissemination of the project. Reduction in life-cycle GHG emissions from the transport sector compared with the baseline. More specifically: On the public transport capacity rationalization component: At least one Limabus concessionaire has used the Credit Guarantee Fund option At least 350 aged and polluting public transport vehicles retired by the 4th year of project implementation through the Guarantee Fund Inclusion and compliance with the environmental guidelines for vehicle retirement set in the operation manual Pilot Retirement Program has established technical and budget processes through a real life experiment on at least 200 vehicles Displaced bus operators have been retrained and have received technical and economic support to opt for new employments or new business outside the transport sector. 3,200 training and technical assistance vouchers supplied to displaced transportation workers. By the 4th year, 80 courses realized, 400 people have received technical training, 50 micro-enterprises granted financial support through micro-credits On the non-motorized transport (NMT) component Physical improvements and extension of
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