contract for public transport services concluded between municipality of bucharest and ratb

CP4 CAPRICE – PMB’ PILOT- PROJECTCP4 CAPRICE – PMB’ PILOT- PROJECT

CONTRACT FOR PUBLIC TRANSPORT SERVICES CONTRACT FOR PUBLIC TRANSPORT SERVICES TO BE CONCLUDED BETWEEN TO BE CONCLUDED BETWEEN

MUNICIPALITY OF BUCHAREST AND PTS OPERATOR MUNICIPALITY OF BUCHAREST AND PTS OPERATOR

CONTRACT FOR PUBLIC TRANSPORT SERVICES CONCLUDED CONTRACT FOR PUBLIC TRANSPORT SERVICES CONCLUDED BETWEEN MUNICIPALITY OF BUCHAREST AND RATBBETWEEN MUNICIPALITY OF BUCHAREST AND RATB

Municipality of Bucharest

Bucharest Transport Authority - regulation, planning, certification, procurement, monitoring, penalties

Public Transport Department – insufficient staff

Operating subsidies and subsidies for special passenger categories

Lack of service performance indicators

Poor control over performance of operation

There is no integrated transport plan (with the metro) available

RATB

Autonomous Regie directly reporting to the Municipality

No contract for public services available

Global record keeping for all operations (there is no separate accounting of transport operations that are publicly-subsidised)

Provides local and regional public transport services


Legal mandatory conditions for concluding the contract for public services between RATB and PMB (Municipality of Bucharest)

Conversion of RATB in commercial company Delegation of administration through direct award (upon procuring the first

contract concluded post-restructuring with the commercial companies emerged as a result of restructuring the “regias”)

Adoption of documents preceding the delegation of administration of contract for public transport services (local public transport programme, Bucharest public transport services regulations, book of specifications, standard form of contract, etc)

The infrastructure remains part of the community’s public asset base Public transport services shall be carried out using only leased or owned

vehicles (use of rented vehicles is prohibited) in accordance with legal mandatory traffic safety and environment requirements (at least Euro 3-compliant), regular technical inspection, etc.

The Operator has exclusivity on the assigned routes.


Service Planning (legal) Responsibility of the Municipality Public Transport Plan approved by Resolution of the Local

Council, highlighting main and secondary lines RATB may request amendments

Current Situation No Transport Plan has been approved yet Planning is carried out by RATB No studies are available to optimise the networks


Tariff Plan (legal) Approval of fare setting, adjustment, fare change - PMB Basis for fare setting – eligible expenses elements Legal fare change or adjustment algorithm – in accordance

with a rise in consumption price ratio as against the current level on the date of the previous adjustment

Approval of passenger categories that are entitled to concession fares - PMB

Basis for fare setting, proposal for adjusting or changing fares - RATB

Current Situation Basis for fare setting based on expenditures that are not

accurately recorded (there is no separate accounting of transport operations)


Collection of incomes generated by ticket sale (legal) RATB or the OperatorCurrent Situation RATB, in kiosks Adding value to magnetic cards – RATB only – payment to

Metrorex- total trips made

Concessioning of Infrastructure ( legal) The royalty may be paid by the Operator Operator carries out maintenanceCurrent Situation RATB does not pay the royalty Operator carries out maintenance


Term of Contract related to the average depreciation term of all transport

assets owned by the Operator related with the necessary depreciation of investments term -

Operator’s responsibility

Printing, dissemination and validation of farecards (legal)

Printing – PMB Dissemination – RATB or PMB Compulsoriness of fare integration by implementing a single

type of farecard for all public transport modes

Current Situation Printing and dissemination - RATB Farecard validation – ticketing sistem using 2 types of

validators (paper and magnetic tickets) – can not record the number, type of trips by line, period etc.


Investment Subsidies In infrastructure – PMB, administration and implementation – either

PMB or RATB In rolling stock - RATB

Passenger Information PMB and RATB Not correlated with the other transport modes that are not operated

by RATB

Record keeping of revenues and expenditures (legal) RATB, separate recording of subsidised public transport operationsCurrent Situation Global accounting records, costs are not identified by transport mode,

line, etc. Public transport–related activities


Monitoring of RATB Operations ARR and AFER, inspections checking for safety, compliance

with both environment and legal regulations PMB has an official delegate in the RATB Board of Directors Reports prepared by RATB

Subsidies Related to operation, transport or fare obligation Operating subsidies - Concession fare subsidies: for special passenger categories

– using local budget – (for example: pensioners are entitled to free transport upon producing proof of pension slip

Penalties may apply (currently there are no penalties)

Quality and Performance

Indicators In order to monitor

performance of the first 5 indicators and to ensure contract performance supervision, there is a need to implement a GPS system on all transport modes. Without a GPS system in place, performance of the above-mentioned indicators can only be measured by RATB using surveys.

The value of accepted levels for each indicator shall be negotiated until Contract signing. They are due to be set based on last year indicators recorded by RATB.



Objectives that must be taken into consideration upon preparing the Contract Draft

Implementation of contract performance monitoring instruments◦ Development of Public Transport Department or procurement of contract

management by a specialised company◦ Full implementation of traffic management system ◦ Restructuring of ticketing system to enable quantification and monitoring at

all times of trips by type, mode of transport, line, date etc.

Separate recording of expenditures and revenues to determine an accurate level of subsidy

Implementation of additional indicators, penalties and bonuses

The Contract shall foster RATB growth in order to enable the latter to participate in tenders after Contract termination


Proposal Regarding Time-Phasing of Pilot Project- terms

December 15, 2009 - PMB – submission of materials – standard forms of contracts, documentations December 1, 2009 - partners – submission of materials – standard forms of contracts, documentations May 1, 2010 - PMB - translation and proposal of a RATB-PMB Contract in

order to discuss it with the work group, dissemination to

partners May (2 days) 2010 - first work group meeting, proposals of amending the Contract,

constraints in implementation of models ( Bucharest) September 1, 2010 - PMB – review of Contract as a result of the first meeting conclusions, dissemination to partners September 2010 (3 days) - second work group meeting, completion of contract applicable to RATB, identification of risks in contract monitoring, setting of parametres due to be monitored using the supervision software programme (partner) November 1, 2010 - IT equipment, laptop included, implementation of supervision software that monitors indicators December 2010 (2 days) - last work group meeting – system testing, evaluation of pilot project results (Bucharest)


Structure of work team for the pilot project

Bucharest◦ Ion Dedu – PMB◦ Melania Mihăescu – PMB ◦ Filip Atanasiu- PMB◦ Marian Gabriel Bors-PMB◦ Marian Bratu – RATB ◦ Geanina Suditu – Metroul SA (consultant)◦ Dan Gheorghiade - Metroul SA (consultant)◦ Constantin Ballo – Metroul SA (consultant)

contract for public transport services concluded between municipality of bucharest and ratb

Documents

integrated transport

municipalityno contract

pts operator contract

fare change pmbbasis

standard form of contract

subsidisedprovides local

local council

concession fares pmbbasis