Mongolia: Public Transport Information and Communication Technology

Sovereign Project | 43529-012

Summary

The TA will introduce integrated circuit card (ICC) ticketing and automatic vehicle location (AVL) systems that will improve the quality, efficiency, and transparency of the public transport sector. The systems will (i) establish a transparent and accountable ICT system for passenger ticketing based on a smart-card system; (ii) optimize use of resources by eliminating illegal free riding; (iii) install an efficient ICT-based financial management system; and (iv) rationalize bus routing, dispatching, and scheduling based on actual passenger demand and observed travel patterns.

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Project Name Public Transport Information and Communication Technology
Project Number 43529-012
Country Mongolia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Information and communication technology - ICT industries and ICT-enabled services
Transport - Urban public transport
Gender Equity and Mainstreaming No gender elements
Description The TA will introduce integrated circuit card (ICC) ticketing and automatic vehicle location (AVL) systems that will improve the quality, efficiency, and transparency of the public transport sector. The systems will (i) establish a transparent and accountable ICT system for passenger ticketing based on a smart-card system; (ii) optimize use of resources by eliminating illegal free riding; (iii) install an efficient ICT-based financial management system; and (iv) rationalize bus routing, dispatching, and scheduling based on actual passenger demand and observed travel patterns. The proposed AVL system, which will be based on global positioning system technology, will help the public transport management body to (i) locate buses en route in real time, (ii) automatically detect deviations from schedule and allow operators to respond to deviations by holding buses or dispatching additional buses, (iii) develop and implement more efficient bus operating schedules, and (iv) transmit real-time information about bus locations to passengers and bus operators. Introducing these systems requires careful planning and meticulous preparatory work, including (i) establishment of a system management body, (ii) development of a financing mechanism, (iii) integration of the fare collection system of multiple bus operators, (iv) design of bus passenger services based on bus location data, and (v) development of a staged implementation program.
Project Rationale and Linkage to Country/Regional Strategy

Mongolia has experienced rapid urbanization over the last decade - more than 60% of the countrys population currently resides in Ulaanbaatar. Serious urban development challenges now face Ulaanbaatar, including insufficient transport infrastructure and poor quality of public transport services and management. Investments in urban transport infrastructure, management, quality of services, and road safety have significantly lagged behind the pace of urbanization. As a result, the city is suffering from heavy road congestion, insufficient traffic management, poor safety conditions, and a weak public transport system. These factors contribute to economic inefficiency because of increased trip times, excessive fuel use, and poor air quality, which all diminish the quality of life. Without a viable public transport system, Ulaanbaatar will soon experience even more serious traffic congestion which will negatively affect economic development and quality of life.

Efficient public transport management institutions with clear mandates and strong capacity are required to implement investments, attract financing, coordinate among stakeholders, and regulate service providers. The institutional capacity of MGU needs to be improved with regard to (i) development, implementation, and enforcement of the urban transport policy and strategy; (ii) long-term investment planning, capital budgeting, and financial management; and (iii) the design and management of urban transport projects financed by international development partners and private sector investors.

Financial management of the public transport sector is one of the key areas requiring urgent assistance. Bus fares have not been increased since 1999 while fuel costs have increased more than five times during the same period. The municipal budget subsidizes about 42% of the bus companies' annual costs, but the mechanism for allocating subsidies does not account for actual passenger ridership and is inefficient. Bus operators do not have the financial resources to renew and expand their bus fleet and provide adequate transportation services. Interaction among the different modes of public transport is far from optimal. More than 20% of the city's budget is spent on subsidizing the bus expenditures of elderly people, military personnel, and students. The bus fare compensation system is inefficient because the amount of compensation is based on assumptions of passenger flow and does not reflect actual passenger numbers. This is exacerbated by illegal free riders using copied or fake identification documents. In addition, high levels of spending on public transport subsidies crowd out limited resources from other important city budget priorities such as education and public health programs. Thus, improving the efficiency and management of the public transport system would bring wide-ranging benefits in multiple sectors in Ulaanbaatar. The success and sustainability of the proposed Urban Transport Development Project largely depends on effectively addressing the inefficient revenue collection and passenger subsidy systems and the uncoordinated operating environment of the existing public transport system. The TA will build on the ongoing technical assistance to Mongolia for Preparing The Urban Transport Development Project and ensure that (i) the above issues are addressed in detail, (ii) the cost estimates for the proposed ICT investments under the Urban Transport Development Project are accurate and financially viable, and (iii) a well-conceived plan for implementing these improvements is in place before the Urban Transport Development Project is implemented.

Urban sector development, including urban transport infrastructure and services, is one of the key sectors for ADB assistance in Mongolia. ADB has provided support to the government for urban sector development since 1998. The Mongolia country operations business plan for 2009-2012 includes the Urban Transport Development Project in the 2011 pipeline. The TA will help the project employ integrated ICT solutions to improve public transport management in Ulaanbaatar. The proposed TA is in line with ADB's urban development strategy and road map for the country as well as the sustainable transport action plan, which aims to address transport needs and provide support to the transport sector in developing member countries and thereby reduce adverse environmental and social externalities associated with transport.

Impact The impact of the TA is improved quality of public transport services in Ulaanbaatar.
Project Outcome
Description of Outcome The outcome of the TA is improved capacity of MGU to render public transport services using up-to-date information and communication technology (ICT) applications.
Progress Toward Outcome To be assessed during TA implementation. TA implementation progress is satisfactory.
Implementation Progress
Description of Project Outputs

1. Policy framework for introduction of new ICT systems in the public transport sector

2. Strategy for integrated circuit card (ICC) ticketing and automatic vehicle location (AVL) systems

3. Organizational structure and implementation plan

4. ICC ticketing and AVL systems design and detailed tender document preparation

5. Financial analysis and investment funding scheme

6. Project management and consulting services

7. Project stakeholder workshops

8. Training workshops for experts and government officials

9. Technical note

Status of Implementation Progress (Outputs, Activities, and Issues) Consultants were fielded on 15 June 2011 and inception report has been submitted. Consultant presented the draft TA interim report at the workshop that was held on 30 August 2011 and submitted the interim report to ADB and the EA on 10 September 2011.
Geographical Location Ulaanbaatar
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The consultants will (i) define the objectives of introducing ICC ticketing and AVL systems; (ii) assess the options and develop a framework for introducing alternative bus fare structures, including zonal and distance-based fare systems, and analyze the impact of such changes on the bus sector fare revenue, ridership, and the financial burden on riders, especially the poor; (iii) assess the possibility of introducing promotional and transfer discounts based on the ICC ticketing system; (iv) develop a code of rules and procedures for bus operators for participation in the ICC ticketing and AVL systems; and (v) prepare a policy framework and brief for ICC ticketing that includes regulatory and institutional requirements and responsibilities based on consultation with government agencies and other stakeholders.
During Project Implementation Three stakeholder workshops conducted at inception, midterm, and final tripartite meetings during months 1 to 6
Business Opportunities
Consulting Services

The TA will recruit the following international consultants (15 person months): (i) Information Technology Engineer/Team Leader; (ii) ICC Ticketing Specialist, (iii) AVL System Specialist, (iv) Financial Management Specialist, (v) Procurement Specialist.

The TA will recruit the following national consultants: (i) Public Transport Specialist/Deputy Team Leader, (ii) IT Engineer/ICC Ticketing Systems, (iii) IT Engineer/AVL and GPS Systems, (iv) Financial Management Specialist, and (v) Financial and Cost Accounting Specialist.

Procurement TA equipment will be procured by the consultants in accordance with ADB's Procurement Guidelines, and will be retained by MGU upon TA completion.
Responsible ADB Officer Antonio Ressano Garcia
Responsible ADB Department East Asia Department
Responsible ADB Division Urban and Social Sectors Division, EARD
Executing Agencies
Municipal Government of UlaanbaatarSukhbaatar Square-11
Ulaanbaatar-46, Mongolia
Timetable
Concept Clearance 31 Jan 2011
Fact Finding 26 Oct 2009 to 31 Oct 2009
MRM -
Approval 29 Jun 2010
Last Review Mission -
PDS Creation Date 16 Jul 2010
Last PDS Update 21 Dec 2011

TA 7556-MON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2010 24 Jul 2010 24 Jul 2010 28 Feb 2011 30 Sep 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 0.00 100,000.00 0.00 0.00 0.00 100,000.00 29 Jun 2010 420,722.35
Title Document Type Document Date
Public Transport Information and Communication Technology TA Completion Reports May 2013
Public Transport Information and Communication Technology Technical Assistance Reports Jun 2010

Safeguard Documents

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No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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