Sheberghan City Bus Terminal, Sheberghan, Afghanistan Public Private Partnership

Sheberghan City Bus Terminal, Sheberghan, Afghanistan

On this page: A case study on Sheberghan City Bus Terminal, Sheberghan, Afghanistan. Find more at the Municipal Public-Private Partnership Framework - Project Summaries section for brief summaries of around 100 projects from around the world, examples of successes and challenges, as well as innovative ideas on solutions, or visit the Guidelines on Innovative Revenues for Infrastructure section.

Project Summary:

Background

Bus passengers in Sheberghan had to wait for buses outside on the main road, sometimes for hours, without access to public toilets or other facilities. There was also no organized parking space for dropoffs and pickups, which caused traffic jams and frequent road accidents. After receiving complaints from residents on the absence of a bus station in the city, the municipality decided to construct a modern bus terminal and to enter into a PPP for the operation and management of the bus terminal to ensure its long-term sustainability.

Project Structure

The municipality built the bus terminal and made the project site available to a local private investor. Of the total USD 230,000 investment cost, the municipality contributed USD 50,000, a United States development aid agency contributed USD 120,000, and the private partner provided the remaining USD 60,000.

In addition to the operation and management of the bus terminal, the private partner was responsible for constructing 16 municipally-owned shops adjacent to the bus terminal at no cost to the municipality. In return, the private partner leases the shops from the municipality at no charge for five years, during which it may recover its initial investment in the project plus a reasonable return by subleasing the premises. After the initial, five-year period, the private investor will begin making lease payments to the municipality, further contributing to the sustainability of the facility.

Lessons Learned

The bus terminal was inaugurated on 13 November 2013 and the project site comprises a canopy, shops, a restaurant, modern toilets, and other facilities. The municipality plans to use the lease revenue it will receive from the private partner for reconstruction projects throughout the city.

Through this PPP project, the municipality gained both social and economic benefits. The project not only helped address the traffic problems and improve passengers’ well-being, it also allowed the municipality to earn revenue from leasing the shops to the private partner.

Note(s):

The Guidelines on Innovative Revenues for Infrastructure (IRI) is intended to be a living document and will be reviewed at regular intervals. They have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions.

To find more, visit the Innovative Revenues for Infrastructure section and the Content Outline, or Download the Full Report. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.