URBAN TRANSPORT

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The Urban Transport Project will: 1) preserve essential urban transport capacity in 14 cities by linking financing of urgently needed replacement vehicles and spare parts to the implementation of reforms; 2) strengthen the 14 project cities' urban transport sector institutions so as to improve the efficiency of passenger transport operations; 3) arrest the decline of urban transport services in cities throughout Russia through the provision of urgently needed spare parts for transport vehicles; and 4) provide restructuring advice for the doemstic bus industry. The project will also serve to demonstrate the benefits of such reform programs to other cities in Russia and how Government support for capital replacement of vehicles could be tied to improved cost recovery and other reforms. Such reforms are needed on a national level to reduce urban transport losses. The project comprises three major components. The first component provides assistance for 14 self-selected cities to finance a large part of required fleet replacements for a three year period including financing for diesel fueled buses and trolleybuses, and rehabilitation of buses, trolley buses and trams; provision of workshop, computers and other equipment for urban transit companies plus a fare collection system to be tested in one of the project cities; and technical assistance and training to assist the cities implement reforms and assist with procurement and monitoring of the project. The second component provides assistance for the Ministry of Transportation (MOT) including: ten natural gas fueled buses; equipment for the Project Implementation Directorate (PID) studies of, and restructuring advice for, the domestic bus manufacturing industry; technical assistance and training to assist MOT develop more appropriate urban transport policies for cities throughout Russia; and help expand the reform program to other cities. The last component provides for the provision of spare parts for transit companies throughout Russia.