RIO DE JANEIRO METROPOLITAN TRANSPORT DECENTRALIZATION PROJECT

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The broad project objectives are to lay the foundations for the financial, institutional and organizational policy changes required to achieve sustainable, integrated multimodal transport in the Metropolitan Region of Rio de Janeiro. The project includes an Investment Component (IC) and an Institutional Development (ID) component. The IC component includes civil works and goods to implement the rehabilitation of stations, track, rolling stock, telecommunications, fencing of the right of way, and construction of transfer points within stations to integrate the Brazilian Urban Train Company (CBTU) - State of Rio de Janeiro (RJ) with other modes. The ID component will consist of the development and implementation of policies and action programs to: (a) introduce and establish organizational, financial, and institutional reforms in the urban transport sector in Brazil, including the implementation of a plan of action for the transfer of remaining viable CBTU systems to their respective states; (b) operationalize multi-modal and tariff integration between CBTU-RJ, METRO, feeder bus systems, passenger ferry services, and non-motorized vehicles, introduce long-run variable cost-based fare structures for peak and off peak services, and improve targeting of subsidies; (c) identify an investment program to consolidate the rehabilitation and decentralization in CBTU-RJ; (d) study and recommend different management alternatives, technical improvements, and financial reforms for improving the operating efficiency of the METRO, CONERJ, and the CTC, including management contracts and franchises or concessions to the private sector; and (e) provide technical and management training to CBTU staff as recommended in the organization and manpower development studies (and after decentralization, to the staff of the new State operating agency), and to staff of other tranport agencies participating in the project.