In its “new era,” Colombia aims to become the country with the world’s largest articulated electric fleet, and the financing scheme that Transmilenio will undertake is no small detail.
The plan proposes the incorporation of more than 600 low and zero-emission buses. The first stage began with the tender process for 296 articulated and bi-articulated buses: 156 will be 100 per cent electric, while the technology for the rest will depend on market offers.
With an investment of 244 million dollars, which is framed within the District Development Plan of Bogota, they will operate from the El Vínculo yard in Soacha for the corresponding recharging.
In this process, which covers the next four years of management under the administration of Galán, the Mobility Secretariat represents the second sector with the largest budget.
“We are responsible for more than 30 per cent of this budget, reflecting our priority and commitment to the city. Our strategic lines are designed to comply with this Development Plan,” says María Fernanda Ortíz, General Manager of Transmilenio.
Additionally, to strengthen the quality of more than four million daily trips, she states, “All of this must be financially viable in the long term.”
Within Galán’s plan, Transmilenio’s specific budget is over six billion, representing 30.8 per cent of the total investment in the mobility sector’s objectives.
Over the next four years, they will focus on three projects that will operate in the new trunk lines of the Transmilenio System: Avenida Carrera 68, Avenida Ciudad de Cali, and the extension to Soacha.
Regarding the business model, each stage will require a separation between provision and operation. Provision will be under the modality of a concession contract and direct purchase, while the operation will also be with a concession contract.
How does the current budget system work and what are the future plans for financing eBuses?
In the presentation of the phase that comes into action, they revealed that they are analyzing new alternatives in relation to payment sources.
“Transmilenio, as responsible for this integrated system, has never stopped paying the concessions according to the agreed remuneration rates. The city has fully supported this, guaranteeing the financial solidity of the system and providing peace of mind to private companies,” says Ortíz.
It is worth noting that more than 120 international and national companies are interested in the project, and Invest in Bogota will be in charge of articulating the spaces to facilitate foreign investment as a “development engine” for the city.
Who are they referring to? Manufacturers, concessionaires, investment funds, electric mobility, and technology firms will seek to strengthen the public transport system through what they call “Phase VI.”
Currently, the company has two main sources of resources to pay for 47 operational concessions.
The first is the user fare, which is collected from the payments users make when using the system. This fare is the same for zones and trunk lines.
In addition, they receive direct transfers from the district through the Finance Secretariat, also backed by the Tariff Stabilization Fund (FET) of the Mobility Secretariat.
“The combination of these two sources has allowed us to meet 100% of our contractual commitments since the start of the system. These resources flow into a central trust, specifically the SITP Trust, from where they are distributed to the different phases and contracts,” she explains.
Furthermore, it is announced that they are working on two additional sources to strengthen the financial sustainability of the system, which are included within the PDD: one comes from the District’s Future Validities, and the other is expected to be backed by the National Government.
The first approach represents a significant change, as it separates part of the investment component in fleet and infrastructure from the system’s technical fare, which is crucial for long-term stabilization.
The support from the National Government is expected to co-finance these projects and thus reduce the tariff stabilization fund, which would allow for maintaining a lower technical fare over the next 10 years.
What is this “new era” with 296 low and zero emission buses about?
After five phases developed over 24 years – which had two components: the trunk and the zonal system – Transmilenio begins the sixth phase.
Specifically, this initiative will focus on the trunk component to achieve service integration in Bogota and neighbouring municipalities.
It is the process of linking a new fleet of zero and low emission buses for the operation of the new trunk lines: Avenida Carrera 68, Avenida Ciudad de Cali, the extension to Soacha, Carrera 7, and Calle 13.
What exactly are they looking for? With the presentation of the roadmap, which contains the characteristics of the tender, it is expected that the concessionaire will make its “own design” and implement the most efficient solution to meet the operational design needs.
It is estimated that the fleet will be divided into two lots. First will be 296 buses out of the more than 600 that are intended to be reached.
The first lot will consist of 140 articulated buses, which must at least have Euro VI technology, which can be electric, diesel, and natural gas, depending on market availability.
Meanwhile, the second lot will include 156 articulated buses that will have to be 100% electric.
For this, they will provide support infrastructure, divided into two yards. “El Vínculo,” located in Soacha, and “La Sexta,” which is an icon in Bogota.
In the latter, the provision concessionaire will have to carry out the required infrastructure concessions.
It is expected that the concessionaires will design an integral system and an “operational solution,” which includes everything from the bus and brand to the size and technical specifications of the batteries, the charging infrastructure, and the distribution in the yards.
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