Municipalities are using public-private partnerships (PPPs) increasingly to expand and improve bus shelters, stations and terminals, thus improving the travel experience of commuters by providing a clean and safe place to wait for and change buses. This can also be turned into a revenue stream for municipalities through concession fees and lease fees. Concessionaires recoup their investments through advertising, commercial real estate development alongside the terminal, parking fees and charges payable by the buses.
Below are some examples:
Bus Shelters
India
Under the PPP model in India, the concessionaire builds and maintains bus shelters and enjoys the rights to collect revenue from displaying advertisements at earmarked locations on bus shelters, and in turn pays a prescribed concession fee to the municipality.
United States
- Chicago - Coordinated Street Furniture Program Agreement between the City of Chicago (City) and JCDecaux Chicago, LLC (Contractor)
- One of the largest street furniture contracts; original term was 10 years (was extended for another 5 years in 2012). Contractor is responsible for the design, fabrication, installation, maintenance, operation, removal and dismantlement of various pieces of street furniture, including 2,175 bus shelters as well as bus supervisor shelters, newsstands, information kiosks and other street furniture structures at no cost for the City. City allows the Contractor to place advertising on certain types and pieces of street furniture in accordance with an ordinance relating to street furniture of June 9, 1999 as a revenue generating means; Contractor pays fees to the City for the privilege of selling and maintaining advertisements pursuant to the coordinated Street Furniture program described in the Agreement. The Contractor’s obligation to pay fees is independent of its revenues and all other obligations under the contract. The contract contains a Minority and Women’s Business Enterprises Commitment.
Bus Terminals and Stations
Honduras
- Bus Terminal and Municipal Market of Danli, Honduras
- Public-private partnership for the design, financing and construction of the updates to the Danli Bus Terminal and Municipal Market space, including 600 commercial market stalls and 20 bus terminals. The market stalls will be transferred to private party for the construction of the upgrades and upon completion of the works, the private company will then sell to small and medium enterprises who will own and profit from the commercial space and bus terminal stalls at a price preset by the municipality. The private party may also rent to SMEs who are not able to purchase the real estate. The contract foresees a ten-month construction phase, with a contract period of a total of 14 months. The agreement includes guarantees for the completion of the contract and for the quality of construction, in accordance with the technical specifications of the project. The private entity pays the PPP Unit a set fee for the structuring and preparation of the project. The contract includes a formula for rebalancing financial and economic equilibrium due exclusively to a change in law of public-private partnerships. Other interesting features include smart building, energy savings, ecological handling of solid waste, a system of fire risk management and special design for accessibility for persons with disabilities.
- Alianza público-privada para el diseño, financiamiento y construcción de la renovación de la Terminal de buses y mercado municipal de Danlí, el cual incluye 600 locales comerciales y 20 terminales de bus. Los locales comerciales serán enajenados a la parte privada para la construcción de las renovaciones, y una vez éstas sean realizadas, la parte privada las venderá a pequeñas y medianas empresas (PYMES) que las poseerán y se beneficiarán del espacio comercial y las terminales bus, a un precio prestablecido por la municipalidad. La parte privada también podrá arrendar los bienes inmuebles a PYMES que no los puedan comprar. El contrato prevé una fase de construcción de 10 meses, completando un periodo contractual total de 14 meses. El contrato incluye garantías de cumplimiento y de calidad de la construcción, de acuerdo a las especificaciones técnicas del proyecto. La parte privada paga a la unidad de alianzas público-privadas una tarifa por la estructuración y preparación del proyecto. El contrato contiene una fórmula para reestablecer el equilibrio económico y financiero debido, únicamente, al cambio de ley en alianzas público-privadas. Otras características interesantes incluyen la construcción inteligente, ahorro de energía, manejo ecológico de desechos sólidos, un sistema para el manejo de riesgo de fuego, y un diseño especial para el acceso a personas con discapacidades.
India
- Uttar Pradesh, Lucknow – Development of Alambagh Bus Terminal in Lucknow on a Design Build Finance Operate and Transfer (DBFOT) basis - Draft Concession Agreement between the Uttar Pradesh State Road Transportation Corporation (UPSRTC) and the Concessionaire. The Concessionaire is granted the exclusive right, license and authority to construct, operate and maintain the Bus Terminal and Commercial Complex for 32 years (Article 3.1.1) against an Upfront Concession Fee (Article 26.1 and 26.2) as well as an Annual Concession Fee (Article 26.3). The revenue to be earned by the Concessionaire includes mainly a User Fee charged to both public and private sector buses (Article 3.1.2 (d) and 27) the right to exploit the Commercial Complex for economic purposes including the right to sub-license (Article 3.1.1) as well as potential parking fees and advertising revenues.
Toolkits
- Toolkit for Public-Private Partnerships in Urban Transport - Maharashtra, India, Asian Development Bank (ADB) 2011 - This toolkit was prepared to assist public entities in the state of Maharashtra in India in developing public-private partnership (PPP) urban bus transport projects. It includes case studies and detailed term sheets for the different PPP options that aim to facilitate the drafting of contracts including a term sheet for a bus depot contract (design-build-operate contract).
- PPP Toolkit for Improving PPP Decision-Making Process : Online resource published by the Government of India (Ministry of Finance) that has been designed to help improve decision-making for infrastructure PPPs in India and to improve the quality of the PPPs that are developed. The toolkit covers five infrastructure sectors (state highways, water and sanitation, ports, solid waste management, urban transport (bus rapid transport systems). It includes a case study of the Amritsar Inter-city Bus Terminal, Punjab, DBFOT basis.
