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GLOBAL ENVIRONMENT FACILITY
PROPOSAL FOR PROJECT DEVELOPMENT FUNDS (PDF)
BLOCK B GRANT

Country:Peru

GEF Focal Area:Global Warming

Project Title:Public Transport Improvements Program in Lima

Requesting Agency:World Bank

Executing Agencies:The GEF funds will be administered by theFondo Nacional del Ambiente (FONAM), Consejo Nacional del Ambiente (CONAM) will be in charge of the procurement issues,and a steering committee (including the municipalities of Lima and Callao, of FONAM, of CONAM, of SENATI, of the Council of Transport, of the Transport, Communications and Housing Ministry and the Finance Ministry, of a representative of the Clean Air Committee for Lima and Callao) will monitor and coordinate the project

Total Project Cost:US$ 104.3 million

Financing Plan:US$ 65.0 million (IDB-IBRD loan)

US$ 9.3 million (GEF)

US$ 35 million (estimated Government of Peru / Municipalities of Lima and Callao counterpart)

Project Duration:6 years (2003-2008)

Preparation Costs:US$ 777.405

PDF Block B Funds Requested:US$ 350,000

PDF Co-Funding:US$ 261.336 (Government of Peru)

US$ 2.000 (NGOs)

US$ 91.069 (Municipalities of Callao and Lima)

US$ 73.000 (Clean Air Initiative)

Block A grant awarded :No

Project Objectives

  1. The objectives of the proposed program are to create and foster an efficient multi modal and poverty oriented urban transport system, to reduce greenhouse gas emissions and local and air and noise pollution, and to enhance the legal and institutional framework that ensure the sustainability of implemented measures.
  1. To achieve the aforementioned objectives, the project will focus on creating behavioral changes in transport and mobility patterns of transport users by facilitating intermodal transport use and improving the attractiveness of public transport and non motorized transport through construction of separated rapid bus corridors, safe bicycle routes and better pedestrian facilities. While the WB project will cover the more investment intensive parts (bus infrastructure), GEF will complement these investments by covering less investment intensive parts, whose impact on GHG emissions per dollar spent is expected to be most significant. These components include bikeways facilities, information campaigns on the use of bicycles, incentives to convince bus owners into scrapping their old and polluting present vehicles, training for the local institutions involved in environmental issues, etc.

GLOBAL SIGNIFICANCE

  1. Air pollution and emission of greenhouse gases caused by the transport and traffic situation in Lima is a difficult challenge. Between 1990 and 1997, the number of public transport units have tripled, and the number of automobiles have increased at a yearly rate of over 6.4 percent. The city has approximately 7 million inhabitants, 650,000 motor vehicles, with 9 million daily trips on motor vehicles. From 1990 to 1998, the operating public transport fleet allowed to operate increased by 350 %, from 10,500 to 46,238 units. Currently, 100,000taxis and 15,000 motorized tricycles are circulating in Lima’s streets. Buses are obsolete with an average fleet age of 18 years for buses, 15 years for minibuses and 11years for Combis (low capacity buses).
  1. Due to public transport system inefficiencies, there is an annual over-combustion[1] of 13.2 million liters of gasoline and over-emission of 4,400 metric tons of air pollutants. The rationalization of only one bus-route as a pilot project resulted in a total reduction of 6 million bus-km per year on this route, achieved through the shortening of bus routes and the removal of redundant buses. At the same time, car use is increasing steadily and most of the private vehicles are also old and poorly maintained. There have not been any motor verification or vehicle inspection programs in the last ten years. All of this contributes not only to a high level of local air pollution but as well to global warming through the emission of greenhouse effect gases, especially CO2. Lima is now among the most polluted cities in Latin America. The burden falls disproportionately on the poor as air pollution gets trapped and accumulates in poor neighborhoods along the Andes foothills.
  1. It is therefore logical to link GHG emission reduction to this major effort to reduce congestion, increase public transport modal share and bicycle use in the Lima-Callao area. The replicability of these components should allow Peru to transfer these positive impacts in other Peruvian cities.
  1. Besides the growth in local pollutants, the transport sector contributes to rising greenhouse gas (GHG) emissions in the form of CO2, CH4, N2O and gases responsible for the formation of O3, such as NOx and the COVs. As carbon dioxide emissions are directly associated with fossil-fuel use in transport, our program, which will encourage low-emission or zero-emission modes use, will lead to a reduction in greenhouse gases. More specifically, it attempts :
  2. To improve quality of public transport and therefore make it more likely to divert drivers out of their cars or at least to slow or stop public transport users evasion towards private cars.
  3. To increase use of emission-free modes such as bicycles, which should reduce the number of fossil fuel-burning pass-km in the Lima-Callao area;
  4. To lay the ground for a more energy-efficient travel pattern through rational land-use. Density patterns are obviously closely linked to transportation and therefore energy use and greenhouses gases emissions.

Background

  1. The urban transport situation in Lima is somewhat peculiar. Although use of public transportation is widespread and the motorization rate is relatively low, pollution and emission of greenhouse gases are important environmental problems. Urban transport deregulation (of the 1990s) has had mixed results, and created an oversupply of public transport vehicles not subjected to minimum emission quality standards. In order to enhance the creation of formal bus companies, the concession scheme needs to be revised.
  1. Today, growing traffic congestion in the Lima metropolitan area is impeding the functioning of the bus transport system. To re-establish a clean, efficient and reliable transport alternative, it is necessary both to separate public transport from general traffic in order to increase the speed and to use vehicles with higher capacity which are far less polluting per passenger-km. The most cost-effective solution is to create segregated bus ways dedicated to high capacity buses.
  1. Course of Action. To address the aforementioned issues, a major study was finalized early in 1999, which is the basis for a proposed IDB-World Bank loan (which is described into further details in the following pages). Its main recommendations are the following :

(i)Develop a high-capacity public transport system based on dedicated busways to increase the efficiency of the public transport system. These busways would be concessioned to the private sector on a competitive basis.

(ii)Establish a comprehensive program to improve transport conditions through traffic management and engineering work.

(iii)Restructure urban transport agencies and strengthen technical capacity.

  1. A World Bank project (Peru Transport Rehabilitation Project I,) included a non-motorized transport pilot component for Lima from which valuable lessons have been learned. As learned from international experiences, the lack of promotion of bicycle use for transport activities and the absence of safe and secure bicycle parking facilities are major barriers for the use of bicycles.
  1. The project design draws heavily on lessons learned in other urban transport project which included public transport components and/or non motorized transport components. As for public transport projects with separated bus corridors successful regional examples include Curitiba, Bogota and Quito. Projects which include bicycle components are hard to find in the region, but lessons can be learned from Lima and Bogota, while outside the region Accra, Marikina, Beijing and Gdansk will provide valuable lessons.

Project description

1. Construction of Segregated Busways, Bikeways and Incentives for Efficient Public Transport Units

General outline of the program component

  1. The program would finance the construction of segregated bus ways and reforms to reduce the oversupply of public transport which result in large inefficiencies in public transport provision; urban congestion and adverse environmental and safety impacts; non-rational and inefficient use of scarce road space; predatory and counterproductive competition; and low average speeds and high trip times.
  1. Segregated busways, larger and cleaner vehicles and well-enforced private sector concessions will: increase the service efficiency, reducing the GHG and local emissions per passenger-km; increase the service quality through reduced trip times; rationalize space consumption by transport, prioritizing public transport. This will: ease traffic congestion and enable other road vehicles to drive a bit faster and then in turn reduce their emissions per veh-km; improve road safety by eliminating competition distortions; ensure a financially sustainable operation of the related public transport services[2] ; improve the economic efficiency of the city through lower trip times and better accessibility;
  1. Moreover the project will provide financial and technical incentives to replace old and heavily polluting buses by less polluting units.

Corresponding GEF sub-component

  1. Scrapping the old polluting buses. A preliminary study would provide resources to design an incentive scheme for scrapping old buses, monitoring this process and mitigating negative social impacts. On the basis of the results of this study, a scheme of incentives will be put together in order to enhance the removal and elimination of the most polluting vehicles. A revolving fund is one of the solutions that are envisaged by now, which would provide small operators with access to credits provided that they commit to scrap their old vehicle(s). Part of the budget allocated to this activity will be used to monitor and assess the social impacts of the program, as well as to mitigate them.
  1. Physical improvements and extension of the bikeway network : By including the promotion of bicycles as an alternative mode of transport, additional benefits would be achieved: no emission of green house gases; no noise pollution; less space-consumption; and additional flexibility and reliability of transportation modes. Based on lessons learned from the existing network, the GEF component would not focus on the construction of separated bicycle paths but would aim at consolidating and increasing the use of bicycles where bikeways have already been built, and eventually other areas of the city. The network will be extended by 4km in order to get it connected to the universities Mayor de San Marcos and Católica (45,000students. An assessment “block by block” will make possible specific improvements to ease bike traffic. Emphasis will be put on the sustainability of the bikeways maintenance scheme through specific agreements with the Municipalities and civil society representatives. In addition, several types of bicycle parking facilities will be tested. To end with, some green areas will be laid out in the vicinity of the bikeway network in order to make it more attractive and to add a final stroke to the underlying “green philosophy” which underpins this type of infrastructure.
  1. Communication, Dissemination and Training Program about motorized and non motorized local transport: The Communication program will facilitate the relevant information for users, authorities and officials regarding the role of the different ways of local transport and its benefits on the economy, society and particularly on transport. The engineering and traffic management staff of the districts served by the existing bikeways will be trained in the area of motorized and non-motorized local transport and will be requested to get involved in the promotion of sustainable modes of transport.
  1. Collaborating with NGOs : One of the main hurdles to increased bike use in Lima lies in the lack of a “bike culture”. Several NGOs (Ciclored for example) are involved in promoting bike use and the project could assist these NGOs to improve their services, increase their investments and promote bike-use. These NGOs will be involved in the administration of the existing revolving fund established under the Transport Rehabilitation I project that provides access to credit to the poor for the purchase of bicycles.
  1. Pedestrian facilities: To complete this set of measures, it’s envisaged to improve the accessibility to the bus stations on the segregated busways for pedestrians. Creating a safe and pleasant walking environment through repairing and widening sidewalks can contribute significantly to increasing the non motorized transport modal share.

2. Air/noise pollution monitoring and control.

General outline of the program component

  1. The project would help the Municipalities of Lima/Callao, through the Clean Air Committee, to finance the development and monitoring of air/noise quality standards. This includes: (i) the financing of monitoring equipment, training of monitoring staff, operational costs for monitoring and publication of monitoring reports; (ii) the introduction of vehicle emission control equipment and training of drivers and owners; (iii) public education campaigns against air/noise pollution; and (iv) enforcement of vehicle emission limits.

Corresponding GEF sub-component

  1. None

3. Institutional Strengthening.

General outline of the program component

  1. The project would strengthen the following institutions related to climate change activities in the form of equipment, studies, technical assistance, and specialized consultants: FONAM, CONAM, SENATI, Municipalities of Lima and Callao, selected Districts, Transport Council.

Institutional strengthening financed by the WB loan :

  1. FONAM to improve its effectiveness in attracting finance for climate change and renewable energy related activities and promoting greenhouse gas reduction subprojects in Peru.
  1. CONAM to enhance its capacity to calculate emissions, establish base line studies of emissions, promote clean technologies, improve the quality of information, and to develop environmental policies with participation of the private sector.
  1. SENATI (Servicio Nacional de Adiestramiento en Trabajo Industrial): to improve the quality of its training program for engine mechanics and of its consulting services to bus companies and as well to help SENATI to carry out awareness-raising campaigns on climate change and on negative impacts of vehicle pollution.

Institutional strengthening jointly financed by the WB loan and the GEF component:

  1. Municipal governments of Lima and Callao to effectively manage traffic engineering, public space (streets, sidewalks, bikeways), bus concessions and clean air policies, and public campaigns for reduction of green house gases, noise pollution.
  1. The districts which are crossed by the present bikeway network in order to help them to properly maintain this infrastructure, to have an integrated traffic management policy which include non-motorized transport, to adequately deal with mototaxis and to be able to correctly use information related to vehicles pollution, as well as its causes and consequences on the environment and on the climate change, and to have the capacity to launch information campaigns on these issues.
  1. Lima-Callao Transport Council. This institution would not only involve the Lima and Callao municipalities but also the Transport Ministry, the Finance Ministry and the police and would aim at managing and implementing urban transport planning in a coordinated way. Coordinating the program of bus concessions through Lima and Callao would be the Transport Council’s responsibility.

Additional corresponding GEF sub-component

  1. Study to find ways of attracting additional user from low capacity modes to a more efficient and less polluting transport modes. Choices to be considered might be (a) air-conditioned buses where users are assured to get a seat, (b) integrate the Tren Electrico line and the separated bus corridor system, (c) support express minibus services to selected high-density destinations, such as Miraflores, Corpac, Lima Cercado, (d) support charter bus and van pool operations to major employment centers, such as Government Ministries, Banks, airport etc.). The study will be supported by data from focus group discussions and workshops with (potential) public transport users aimed at identifying constraints and opportunities of public transport services.

4. Management, Monitoring and Evaluation.

General outline of the program component

  1. The program will be implemented by the Municipalities of Lima and Callao, under coordination by a Project Steering Committee which will be created specifically on this occasion. The IBRD loan amount will be transferred under a separate agreement to the Municipality.

GEF corresponding sub-component

31.The GEF funds will be administered by FONAM through a financial management system of the grant acceptable to the Bank. FONAM would be in charge of the procurement of consultants in accordance with World Bank guidelines. CONAM will be in charge of project monitoring and evaluation of the specific GEF component.
  1. The steering committee will include representatives of the municipalities of Lima and Callao, of FONAM, of CONAM, of SENATI, of the Council of Transport, of the Transport, Communications and Housing Ministry and the Finance Ministry, of a representative of the Clean Air Committee for Lima and Callao to ensure coordination between the stakeholders of the program, monitor the project and calculate the project indicators. The president of the steering committee will be chosen among its members and will be assisted by an executive secretariat, which will be assumed by the institutions members of the Committee. The Committee will be helped on the technical aspects of the project by an advisory panel, constituted by members of the civil society, such as the Centro de Investigacion y Asesoría de Transporte Terrestre (CIDATT) and the NGO CICLORED.
  1. Beyond the qualitative evaluation of the impact of the GEF component, a quantitativa analysis will be carried out as the project goes along. This analysis could be based on the ASIF methodology, as described in Lee Schipper and Celine Marie-Lilliu, International Energy Agency, “Transportation and CO2 emissions : Flexing the Link”, Paris 1999.
  1. The innovative project approach merits the inclusion of a comprehensive monitoring and evaluation component which includes qualitative and quantitative performance indicators for implementation of each of the subcomponents. These indicators will include public transport and bicycle user surveys and impact assessments, public transport ridership data, road safety data, general traffic counts on trunk routes and bus counts on concessioned public transport routes. The final evaluation will be repeated two years after the project completion in order to find medium- and long term results.

Description of proposed PDF activities AND PDF Block B Outputs

  1. PDF grant funds are required to finance the costs of the preparatory activities necessary to define the components which will be financed by the grant. The final product of the preparation phase will be the Project Brief. This Project Brief will draw on the various sub-components described below. The expected outputs of these subcomponents are summarized below :

Preparation Studies for a Public Transport Strategy