About Project
Pilot project on reforming local and regional public transport and replacement of rolling stock on the basis of investment financing (e.g. public-private partnership) taking into account:
- full payment for transport services of privileged passengers to be made by the state and local authorities;
- long-term planning of public transport service orders and financial stimulation for the development of public transport through a special fond (e.g. from a part of excise taxes on fuel);
- regionalization of transport operators (establishment of regional transport network organizations);
- application of requirements for localized manufacturing in the procurement of rolling stock;
- stimulation of sectors of the field of domestic engineering;
- modernization and replacement of rolling stock of public transport, taking into account a gradual transition to renewable fuels and electric motors.
Objectives
The unreformed sphere of public transport services in Ukraine preserves the country’s dependence on fossil fuels, has a negative impact on ecology and quality of life. In some cities and communities, public transport route networks are not integrated. On city, suburban and intercity routes, there are often no services for convenient planning and fare payment, transport is not supplemented with traffic schedules, diesel buses of small and medium passenger class are operated with an insufficient level of comfort, non-compliance with barrier-free requirements. More than 80,000 such buses need to be replaced with modern ones powered by electric traction or renewable fuels, for which carriers do not have sources of financing. As a part of the project, it is planned to prepare a concept, action plan and pre-project documents for further transition to the European model of providing transport services, gradual modernization of infrastructure and digital services, as well as replacement of rolling stock (up to 70 units) within the territory of 7-10 communities of the selected pilot region of Ukraine.
Activities
Evaluation and analysis of information on public transport services in the specified territory (transport operators and their contractual obligations, route network, stop and other infrastructure, passenger flows, economic efficiency of transport services on every route, etc.).
Consultation with stakeholders and design of project concept, including regarding participation of pilot communities in implementation of plans approved by the state to replace the rolling stock of public transport with eco-friendly, reorganization of management and provision of integrated transport services and provision of privileged services within the territory of pilot communities, modernization of the service provision infrastructure (including the introduction of intelligent transport system), transition to public service compensation rules under public service contract, etc.
Feasibility study of the pilot project of rebuilding public transport sector in the defined territory of 7-10 communities.
Obtaining approval from the Ministry of Infrastructure for implementation of the pilot project and its inclusion in the work plans of the Oblast administration and of the Government regarding implementation of the particular provisions of the Association Agreement between the EU and Ukraine (Regulation (EC) No 1071/2009 establishing common rules concerning the conditions to be complied with to pursue occupation of road transport operator, Regulation (EC) No 1370/2007 on public passenger transport services by rail and by road);
Drafting necessary project decisions of communities regarding implementation of the project at the expense of private investors and co-financing from grant and state recovery support programs.
Outcomes
Communities of the pilot region shall be ready to implement the pilot project on the basis of investment legislation, including adopted project concept, draft documents and work plans:
- draft decisions on inter-municipal cooperation in providing integrated public transport services;
- drafts of updated contracts on provision of transport services with updated requirements for quality of services, rules for transportation of passengers of all (including privileged) categories, replacement of rolling stock with eco-friendly, comfortable, barrier-free, etc;
- draft regulations documents regarding the long-term planning of targeted state subsidies to communities of the pilot project region to stimulate development of public transport (e.g., at the expense of a part of excise taxes on fuel);
- proposals regarding application of requirements for localization in procurement of rolling stock, stimulation of sectors of the field of machinery industry and engineering.