GPOBA has helped design subsidies for low-income users of Bogota’s rapid bus transit system ("Transmilenio"), and continues to explore opportunities to apply similar schemes to other major urban transport systems. This issue of OBA Connections reviews some of the efforts and results of our seeking to expand the application of RBF/OBA to urban transport so that cities can enjoy affordable and efficient transit systems so vital for economic development and quality of life.
These programs, designed with environmental and social safeguards, can become financially sustainable with a high level of quality --- while providing accessibility to the poor through subsidies specifically targeted for them. As many municipalities face rapid population growth, with many newcomers living in informal settlements and few resources, RBF-OBA can be a solution to plan a well-connected and affordable transport system to achieve the inclusion of all people while improving their mobility to their destinations. Read more
Output-based Aid for Urban Transport
This OBApproaches explores how OBA concepts can be applied to urban transport, cites recommendations for their design, and provides a summary of the GPOBA study on urban transport.
GPOBA helped the city of Bogota design a subsidy program for low-income customers to take advantage of the metropolitan bus rapid transit system. The subsidy, launched in February 2014, provides a 40% discount on fares to eligible customers when using their smart cards, for a maximum of 21 rides per month.
The promise and challenges of integrating public transportation in Bogotá, Colombia
This paper presents guidelines to help identify user needs and the design of implementing a solution for the integration of Bogota's transit system (supported by the World Bank and GPOBA). Also included in the planning process, which relied on user consultation, are interviews with experts and a community survey to address concerns about accessibility.
"World Bank and the Colombian National Urban Transport Program"
The Bogota public transport project, for which GPOBA provided technical support, is part of a larger World Bank supported seven-city national program; it is considered innovative for including environmental and social safeguards to ensure cleaner the use of cleaner energy (including the issuance of green bonds to reduce carbon emissions). The program has served as a model for other countries for urban mass transit systems.
In this webinar, participants discussed how GPOBA could develop pro-poor subsidy schemes for the urban transport sector, focusing on the lessons learned from the Bogota project. Among the key dilemmas is designing a program that combines social inclusion with financial sustainability and quality of service.
The Application of Results-Based Financing for Urban Transport
This webinar explored RBF's to help lower-income populations' mobility in urban areas. given the rapid rate of urbanization in the developing world, RBF offers an opportunity to build safer, cleaner and more inclusive transport systems.