The Transurbano is a public bus system that serves Guatemala City . The system is operated by Siga, and funded by the government of Guatemala. The project was inaugurated during the administration of Alvaro Colom , and was supported by the Asociación de Empresarios de Autobuses Urbanos (Association of Urban Bus Operators). The system was established with the goal of replacing privately operated bus service in Guatemala City, eventually amalgamating all urban bus services under the Transurbano umbrella. Service officially began on July 3, 2010, with 15 buses covering 3 routes operating in the southern part of the city between Zone 12 and Zone 21.
109-508: The system was launched in a series of phases, in order to manage rolling stock distribution and operations. Phase 1 was launched with services operating between Zones 12 and 21 in the southern part of the city. The system took advantage of the CENMA bus terminal to connect to Transmetro service. Phase 2 began shortly afterwards in February 2011. This phase provided more service to core areas of
218-407: A rent-seeking behavior, which leads to spiraling costs for users and/or taxpayers in the operation phase of the project. Some public–private partnerships, when the development of new technologies is involved, include profit-sharing agreements. This generally involves splitting revenues between the inventor and the public once a technology is commercialized. Profit-sharing agreements may stand over
327-470: A building contractor, a maintenance company, and one or more equity investors. The two former are typically equity holders in the project, who make decisions but are only repaid when the debts are paid, while the latter is the project's creditor (debt holder). It is the SPV that signs the contract with the government and with subcontractors to build the facility and then maintain it. A typical PPP example would be
436-399: A definition, the term has been defined by major entities. For example, The OECD formally defines public–private partnerships as "long term contractual arrangements between the government and a private partner whereby the latter delivers and funds public services using a capital asset, sharing the associated risks". According to David L. Weimer and Aidan R. Vining, "A P3 typically involves
545-475: A fixed period of time or in perpetuity. Using PPPs have been justified in various ways over time. Advocates generally argue that PPPs enable the public sector to harness the expertise and efficiencies that the private sector can bring to the delivery of certain facilities and services traditionally procured and delivered by the public sector. On the other hand, critics suggest that PPPs are part of an ideological program that seeks to privatize public services for
654-450: A hospital building financed and constructed by a private developer and then leased to the hospital authority. The private developer then acts as landlord, providing housekeeping and other non-medical services, while the hospital itself provides medical services. The SPV links the firms responsible of the building phase and the operating phase together. Hence there is a strong incentives in the building stage to make investments with regard to
763-542: A new short line named "Hipodromo" opened to serve the Hipodromo neighbourhood and the downtown core. This line would also serve as a sister line to "Eje Central", and introduced express services to the UMG university campus. Later in 2016, all lines were renamed after the zones they operate in or serve. Eje Sur was renamed Line 12 as it mainly operates in zone 12, Corredor Central was renamed Line 13 as it connects Zone 13 with
872-593: A number of stations closed, south of Plaza Argentina. Fuerza Aerea station was opened and all direct transfers were removed. Line 1 works in mainly in Zone 1 of Guatemala's Downtown. This line was built soon after Line 13 began operations. The main goal of this line was to make the historic centre more accessible through safe and reliable public transportation. This line travels from 3rd Street in Zone 1, towards 18th Street in Zone 1, passing through 5th Street and 8th Street. This line started service on December 19, 2012. In
981-556: A private entity financing, constructing, or managing a project in return for a promised stream of payments directly from government or indirectly from users over the projected life of the project or some other specified period of time". A 2013 study published in State and Local Government Review found that definitions of public-private partnerships vary widely between municipalities: "Many public and private officials tout public–private partnerships for any number of activities, when in truth
1090-492: A project cheaper for taxpayers. This can be done by cutting corners, designing the project so as to be more profitable in the operational phase, charging user fees, and/or monetizing aspects of the projects not covered by the contract. For P3 schools in Nova Scotia , this latter aspect has included restricting the use of schools' fields and interior walls, and charging after-hours facility access to community groups at 10 times
1199-591: A proposal to create a new alternative transit system to the Transurbano, under the Transmetro banner. This proposal would eventually develop into the TuBus system announced ahead of the 16th anniversary of Transmetro operations. This system is set to operate along a previously proposed Transmetro alignment between zone 17 and Centra Atlantida in zone 18, as well as zones 4, 6, 7, 9, and 14. The buses that made up
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#17327825829261308-455: A radical reform of government service provision. In 1997, the new British government of Tony Blair 's Labour Party expanded the PFI but sought to shift the emphasis to the achievement of "value for money", mainly through an appropriate allocation of risk. Blair created Partnerships UK (PUK), a new semi-independent organization to replace the previous pro-PPP government institutions. Its mandate
1417-605: A range of costs, the exact nature of which has changed over time and varies by jurisdiction. One thing that does remain consistent, however, is the favoring of "risk transfer" to the private partner, to the detriment of the public sector comparator. Value for money assessment procedures were incorporated into the PFI and its Australian and Canadian counterparts beginning in the late 1990s and early 2000s. A 2012 study showed that value-for-money frameworks were still inadequate as an effective method of evaluating PPP proposals. The problem
1526-473: A route between the City Hall (Municipalidad) and a market place at Centra Sur (Southern Transfer Station). The second route, Eje Central , started operations on August 14, 2010. This route serves the central corridor between 6th and 7th Avenue of Zones 1, 4, and 9. Buses run down the middle of the street, are separated from other traffic, and stop at stations approximately every kilometre. The stations are in
1635-483: A second line opened in August of 2010, named "Eje central" also known as "Corredor Central" (Central line, or also known as Central corridor). This second phase coincided with the revitalization project of 6th Avenue in the historic downtown, and received support from private sector developers. A number of lines would be opened without the dedicated right of way, between 2014 and 2016. "Centro Historico" which operates in
1744-509: A smart card, using RFID readers which deduct balance every time a user boards a bus. Fares initially were only GTQ1.10. However, the Asociación de Empresarios de Autobuses Urbanos (Association of Urban Bus Operators), who initially supported the Transurbano project, advocated for the end of subsidies for bus operations, which would allow them to increase bus fares in both privately run routes and Transurbano. Fare increases must be approved by
1853-458: A transfer of risk, but when things go wrong the risk stays with the public sector and, at the end of the day, the public because the companies expect to get paid. The health board should now be seeking an exit from this failed arrangement with Consort and at the very least be looking to bring facilities management back in-house. Furthermore, assessments ignore the practices of risk transfers to contractors under traditional procurement methods. As for
1962-487: A two-way trip costs Q2.00, regardless of how far one goes. In November 2015, payments by the SIGA smart card were no longer accepted because of a multitude of problems and disagreements. A shift to contactless payment options was announced in early 2020. However, implementation of new fare gates, including accessible ones, was only completed at some stations on line 12 and 13. The modernization project, also included support for
2071-454: A vested interest in recommending the PPP option over the traditional public procurement method. The lack of transparency surrounding individual PPP projects makes it difficult to draft independent value-for-money assessments. A number of Australian studies of early initiatives to promote private investment in infrastructure concluded that in most cases, the schemes being proposed were inferior to
2180-418: A wheelchair logo. Roofs in the stations are covered with a transparent plastic covering. The buses are articulated Brazilian-made vehicles manufactured by Volvo and can carry approximately 100 passengers, including standing passengers. Security is provided by Guatemala City's transit police, with officers in fluorescent yellow vests deployed at most stations on the route. Sometimes security personnel ride on
2289-598: Is a list of routes that mainly serve the southern part of Guatemala City. The following is a list of routes that mainly serve the northern part of Guatemala City. The following is a list of routes that mainly serve the town of Santa Catarina Pinula from Guatemala City. The following is a list of routes that mainly serve a popular red-light district along the CA1 in Guatemala City. Bus stops are simple in construction, in order to allow for fast deployment of routes during
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#17327825829262398-506: Is borne exclusively by the users of the service, for example, by toll road users such as in the case of Toronto 's Yonge Street at the dawn of the 19th century, and the more recent Highway 407 in Ontario . In other types (notably the PFI), capital investment is made by the private sector on the basis of a contract with the government to provide agreed-on services, and the cost of providing
2507-484: Is established or renewed, the financing is, from the public sector's perspective, "on-balance sheet". According to PPP advocates, the public sector will regularly benefit from significantly deferred cash flows. This viewpoint has been contested through research that shows that a majority of PPP projects ultimately cost significantly more than traditional public ones. In the European Union, the fact that PPP debt
2616-538: Is intended to cover more suburban service, as well as provide more direct access to the USAC university campus. The line travels between Colon Station in Zone 1, through Zone 7, Zone 11, and terminates at the new USAC Periferico Station. Along the way, it makes direct transfers to Line 6 and 18, while also providing walking connections to Line 1 and 12. In the 2023 service update the line's termini were changed, and all direct transfers were removed, meaning passengers traveling on
2725-518: Is lower than returns for the private funder. PPPs are closely related to concepts such as privatization and the contracting out of government services. The secrecy surrounding their financial details complexifies the process of evaluating whether PPPs have been successful. PPP advocates highlight the sharing of risk and the development of innovation , while critics decry their higher costs and issues of accountability . Evidence of PPP performance in terms of value for money and efficiency, for example,
2834-479: Is mixed and often unavailable. There is no consensus about how to define a PPP. The term can cover hundreds of different types of long-term contracts with a wide range of risk allocations, funding arrangements, and transparency requirements. The advancement of PPPs, as a concept and a practice, is a product of the new public management of the late 20th century, the rise of neoliberalism, and globalization pressures. Despite there being no formal consensus regarding
2943-479: Is not recorded as debt and remains largely "off-balance-sheet" has become a major concern. Indeed, keeping the PPP project and its contingent liabilities "off balance sheet" means that the true cost of the project is hidden. According to the International Monetary Fund , economic ownership of the asset should determine whether to record PPP-related assets and liabilities in the government's or
3052-462: Is responsible, and the Private sector assumes that risk at a cost for the taxpayer. If the value of the risk transfer is appraised too high, then the government is overpaying for P3 projects. Incidentally, a 2018 UK Parliament report underlines that some private investors have made large returns from PPP deals, suggesting that departments are overpaying for transferring the risks of projects to
3161-480: Is that it is unclear what the catchy term "value-for-money" means in the technical details relating to their practical implementation. A Scottish auditor once qualified this use of the term as "technocratic mumbo-jumbo". Project promoters often contract a PPP unit or one of the Big Four accounting firms to conduct the value for money assessments. Because these firms also offer PPP consultancy services, they have
3270-454: Is that most of the up-front financing is made through the private sector. The way this financing is done differs significantly by country. For P3s in the UK, bonds are used rather than bank loans . In Canada, P3 projects usually use loans that must be repaid within five years, and the projects are refinanced at a later date. In some types of public–private partnership, the cost of using the service
3379-458: Is to be launched alongside Line 5, leaving the previously announced Line 17 on hold. Line 15 will be 13.5 km in length, feature 14 stations, and connect with Line 13. TuBus was unveiled in March 2023 as part of the 16th anniversary conmemoration of Transmetro operations. The system is set to serve as an urban bus system, like the existing Transurbano , however, it will be operated entirely by
Transurbano - Misplaced Pages Continue
3488-601: The Conservative government of John Major in the United Kingdom introduced the Private finance initiative (PFI), the first systematic program aimed at encouraging public–private partnerships. The 1992 program focused on reducing the public-sector borrowing requirement , although, as already noted, the effect on public accounts was largely illusory. Initially, the private sector was unenthusiastic about PFI, and
3597-418: The 2023 service update, Line 21 was discontinued in its entirety. Public%E2%80%93private partnership A public–private partnership ( PPP , 3P , or P3 ) is a long-term arrangement between a government and private sector institutions. Typically, it involves private capital financing government projects and services up-front, and then drawing revenues from taxpayers and/or users for profit over
3706-479: The 2023 service update, its southern terminus was changed from Tipografia Station to Centro Civico, and a new Sur 2 station was opened. Line 2 was another line that had some private sector support, the goal was to increase ease of travel between the Hipodromo district and the historic district. The colour for this route is similar to the one for Line 1, as they serve very similar areas. Line 2 also has an express service to provide direct connections between Zone 1, and
3815-579: The Bank of Guatemala, Civic Centre, and 6th Avenue, a popular pedestrian-only section of the city. The line was certified as "Silver" under the BRT Standards in 2014. In 2022, Line 13's Hangares Station became an interchange station with the inauguration of the TransPinula service. In the 2023 service update, Line 13 had its termini changed to Tipografia in the north and Hangares in the south after
3924-540: The Downtown Core, Centro Historico was renamed Line 1 as it serves Zone 1 Downtown, Eje Norte was renamed Line 6 as it terminates in Zone 6, Eje Nor-oriente was renamed Line 18 as it terminates in Zone 18, and Hipodromo was renamed Line 2 as it serves Zone 2. In 2017 a new line, named "Line 21" began operating as a pilot project to improve transportation to and from the USAC University campus. Although it
4033-484: The Guatemala municipality instead of SIGA. The system will also take over previously proposed Transmetro routes in Zone 17, as well as new alignments serving connecting to existing Transmetro routes. Line 21 started as a pilot project to measure sustainability, and conduct a user needs assessment for service to the USAC university campus, in the southern end of the city. The project began as an Express service between
4142-644: The Historic centre was the first of these new lines to open in 2014. The "Eje Nor-oriente" line began operation in 2014 to serve Zone 18 from the Atlantida neighbourhood and the Downtown core. At the same time, construction of stations was ongoing for the new line "Eje Norte". This line opened in April of 2015 and was later renamed line 6 after the Zone in which it terminates from the downtown core. In January of 2016
4251-455: The SIGA smart card, which had been accepted until 2015. Additionally, the new gates would also feature support for NFC payments, as well as debit and credit cards. The gates received public support due to the COVID-19 pandemic, which discouraged many from the use of cash payments to reduce the risk of transmission. In early February 2021, payment by coins was no longer accepted, and payment by
4360-421: The SIGA smart card. This has resulted in a system that is unreliable and comparable to the previously existing model of multiple companies operating several routes. Fully publicly operated systems such as Mixco's Rutas Express , Villa Nueva's TransMIO, and Guatemala's Transmetro have seen success at providing safe and reliable public service at an affordable price. In 2017, the municipality of Guatemala considered
4469-575: The Transmetro. In January 1999, mayor Fritz García Gallont proposed implementing the Transmetro BRT project. However, it would not be until January 2004 when then mayor Álvaro Arzú confirmed that he had considered the Transmetro as a solution to alleviate congestion in the city. By June of the same year, city council said the first phase would be completed by the end of the year. However, several construction delays would push back its completion date from late 2006 to early 2007. The opening date
Transurbano - Misplaced Pages Continue
4578-654: The Transurbano umbrella. This meant the government would contract out some operations, rolling stock, and maintenance to private operators while sharing a portion of the fare revenue. According to an investigation by the Public Ministry, working in collaboration with CICIG (International Commission against Impunity in Guatemala), it was determined that large sums of funds destined for the Transurbano project, and its operator SIGA, were funneled to various public officials and private contractors. The funds were then used for
4687-560: The U.S. Additionally, senior citizens were promised free-fares. Initially throughout the day, then reduced to only during off-peak periods. However many contracted operators have refused to honour the complimentary service for seniors as part of disputes regarding fuel subsidies, leading the Human Rights Bureau to intervene begin enforcement on several routes. Dubbed the Caso Transurbano , the corruption scandal saw
4796-425: The UMG university campus. The express service does not serve any other stations. In the 2023 service update, the express service was removed entirely, ending service to the UMG university campus. In place of the express service, San Jose de la Montaña station was opened near the campus. L6 or Eje Norte, runs from 18th Street in Zone 1 to Cementos Progreso Stadium in Guatemala's Zone 6, on its journey, it passes by
4905-572: The US. Historically, these have been decommissioned school buses that are transformed into chicken buses for rural passenger service. However, private sector importers have begun importing decommissioned low-floor city buses from the US, which are then leased to SIGA for Transurbano operations. The addition of decommissioned low-floor buses and low-floor articulated buses has also resulted in greater accessibility for users in wheelchairs or with mobility issues, and addressed overcrowding. Fares are paid through
5014-453: The assessment of PPPs which focused heavily on value for money . Heather Whiteside defines P3 "Value for money" as: Not to be confused with lower overall project costs, value for money is a concept used to evaluate P3 private-partner bids against a hypothetical public sector comparator designed to approximate the costs of a fully public option (in terms of design, construction, financing, and operations). P3 value for money calculations consider
5123-576: The card, the card offers 4 free rides daily for users with a disability. Along with the introduction of the new payment system, fares remained the same for the existing lines but increased for " Rutas Express ," regional express services between Mixco and Guatemala City, to GTQ2.00. Line 12 starts from Zone 1 in Guatemala City, it runs through the Civic Centre, Bolivar Avenue, Trebol Station, Raul Aguilar Batres Way, and finally terminating at Centra Sur in Zone 12 of neighbouring Villa Nueva city. The line
5232-401: The city, including the historical downtown areas in Zone 1, Zone 2, and under served neighbourhoods in Zone 6, 17, 18, and 24. A majority of the bus drivers for the second phase were hired from private operators that were previously serving some of the target communities. The second phase was further expanded, and complimented with express services between Zone 1 and northern neighbourhoods, after
5341-496: The contractor. One of the main criticisms of public–private partnerships is the lack of accountability and transparency associated with these projects. Part of the reason why evidence of PPP performance is often unavailable is that most financial details of P3s are under the veil of commercial confidentiality provisions, and unavailable to researchers and the public. Around the world, opponents of P3s have launched judicial procedures to access greater P3 project documentation than
5450-727: The contractual complexities and rigidities they entail". In the United Kingdom, many private finance initiative programs ran dramatically over budget and have not provided value for money for the taxpayer, with some projects costing more to cancel than to complete. An in-depth study conducted by the National Audit Office of the United Kingdom concluded that the private finance initiative model had proved to be more expensive and less efficient in supporting hospitals, schools, and other public infrastructure than public financing. A treasury select committee stated that 'PFI
5559-413: The cost of the complex scientific laboratory, which was ultimately built, was very much larger than estimated. On the other hand, Allyson Pollock argues that in many PFI projects risks are not in fact transferred to the private sector and, based on the research findings of Pollock and others, George Monbiot argues that the calculation of risk in PFI projects is highly subjective, and is skewed to favor
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#17327825829265668-465: The costs to be larger than what was projected. Another risk within this area is with change of governance from differing political representatives could lead to projects being diminished or reduction of the allocated budget. This is common within PPPs as different political actors are likely to scrutinise their opponents based on their ideological positions. Private monopolies created by PPPs can generate
5777-852: The country after an appeal for a jail sentence by the Public Ministry and CICIG was rejected. He remained under house arrest until his death in early 2023. In 2022, a judge ruled that Baldizón would have to pay GTQ 1 million, and remain under house arrest after returning to Guatemala from serving a 28-month sentence in the U.S. for money laundering. Transmetro Transmetro is a bus rapid transit system in Guatemala City , Guatemala . The first line opened on 3 February 2007. The fleet consists of modern Volvo buses made by Ciferal in Brazil. The buses have fixed stops and partly run on dedicated lanes, avoiding other traffic. Both stops and vehicles are guarded by municipal police. Service began in 2007 with
5886-430: The course of the PPP contract. Public–private partnerships have been implemented in multiple countries and are primarily used for infrastructure projects. Although they are not compulsory, PPPs have been employed for building, equipping, operating and maintaining schools, hospitals, transport systems, and water and sewerage systems. Cooperation between private actors, corporations and governments has existed since
5995-474: The discontinuing of line 21. When the Transmetro first opened, it accepted only coins, as the fare was set at Q1.00. After the national government began service of the Transurbano, a local bus service similar to the ones in North American cities, it also began to accept the SIGA smart card which had to be tapped to a reader. Passengers must pay the fare each time they enter the Transmetro, which means
6104-516: The downtown and the southern areas of the city. Stations on this line are equipped with accessibility features such as braille that tells users the name of the stations and the connecting lines. This line, as mentioned earlier, runs through the historic downtown, this means that during its journey it will pass by popular landmarks of the city such as the Torre del Reformador, the Acueducto de Pinula,
6213-429: The end of Phase 4, the network has merely focused on its original goal of taking over privately operated service in the city, replacing it with transurbano rolling stock and fare payments. Due to the reduction in the gas subsidy for public transit operators, such as SIGA, various rolling stock owners and drivers have refused to provide service contracted by SIGA. Some have also chosen to raise fares or used cash instead of
6322-413: The eventual conviction of former president Álvaro Colom , a number of individuals who served as ministers during his administration, and former presidential candidate Manuel Baldizón. Transurbano was originally presented as a Public–private partnership to create a transit system that would replace the unorganized services that were offered by a number of individual companies, by bringing all services under
6431-606: The fare payment card was also quite controversial, as its deployment faced numerous challenges to getting information about where to get the card, and how to use it. People with disabilities were also quite critical of the service, as it rolled out with conventional units requiring users to climb a set of stairs, and were not fitted with wheelchair lifts. This is despite the project's initial promise of removing accessibility barriers for public transit. Low-floor units were eventually introduced by contracting out some operations to private bus companies who imported decommissioned city buses from
6540-410: The government of the day appear more fiscally responsible , while offloading the costs of their projects to service users or future governments. In Canada, many auditors general have condemned this practice, and forced governments to include PPP projects "on-balance sheet". On PPP projects where the public sector intends to compensate the private sector through availability payments once the facility
6649-427: The government retains ownership of the facility and/or remains responsible for public service delivery. Others argue that they exist on a continuum of privatization, P3s being a more limited form of privatization than the outright sale of public assets, but more extensive than simply contracting out government services. Because "privatization" has a negative connotation in some circles, supporters of P3s generally take
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#17327825829266758-407: The government, and are closely monitored as a way to keep public transit relatively affordable, given there is no line transfer system, and instead users pay a fare every time they enter a vehicle. As of 2021, The smartcard for Transurbano is no longer accepted at Transmetro stations. Meaning riders must use SIGA cards for Transurbano, and Tarjeta Ciudadana (Citizen Card) for Transmetro. The following
6867-502: The idea that the private sector is inherently better at managing risk, there has been no comprehensive study comparing risk management by the public sector and by P3s. Auditor Generals of Quebec , Ontario and New Brunswick have publicly questioned P3 rationales based on a transfer of risk, the latter stating he was "unable to develop any substantive evidence supporting risk transfer decisions". Furthermore, many PPP concessions proved to be unstable and required to be renegotiated to favor
6976-464: The inception of sovereign states , notably for the purpose of tax collection and colonization . Contemporary "public–private partnerships" came into being around the end of the 20th century. They were aimed at increasing the private sector's involvement in public administration . They were seen by governments around the world as a method of financing new or refurbished public sector assets outside their balance sheet . While PPP financing comes from
7085-417: The initial Transurbano fleet were made in Brazil by Busscar , Marcopolo , and CAIO. All buses featured informational LCD screens that displayed weather information and advertisements, security cameras, and GPS tracking. Since the completion of phase 4, SIGA has worked with private bus operators to convert and refurbish buses for Transurbano operation. Guatemala is a notable importer of decommissioned buses from
7194-421: The initial phases. A large station would consist of an illuminated sign with the Transurbano system logo, a metal fence facing the road, and a plastic translucent roof. Simpler bus stops were identified only by an illuminated sign on a blue metal pole. Starting February 2013, the municipality of Guatemala took responsibility for adjusting the locations and refurbishing Transurbano bus stops in the northern section of
7303-417: The introduction of a new payment card named "Tarjeta Ciudadana" which became the default payment method, meaning cash payments were no longer accepted. In 2023 several service changes were made to the network, including the official removal of all direct interchanges, with the exception of those on lines 6 & 18 and lines 1 & 2, as well as the addition of new stations on Lines 1, 2, 12, 13, and 18, and
7412-473: The lack of investor rights guarantees, commercial confidentiality laws, and dedicated state spending on public infrastructure in these countries made the implementation of public–private partnership in transition economies difficult. PPPs in the countries usually can't rely on stable revenues from user fees either. The World Bank 's Public-Private Infrastructure Advisory Forum attempts to mitigate these challenges. A defining aspect of many infrastructure P3s
7521-419: The limited "bottom line" sheets available on the project's websites. When they are successful, the documents they receive are often heavily redacted. A 2007 survey of U.S. city managers revealed that communities often fail to sufficiently monitor PPPs: "For instance, in 2002, only 47.3% of managers involved with private firms as delivery partners reported that they evaluate that service delivery. By 2007, that
7630-502: The line can only transfer by walking to a nearby station. Line 5 was announced to be under development by the Municipality of Guatemala in March 2021. This line was slated to use a different rolling stock from the standard Marcopolo BRT, instead using a set of city-style buses which were to be 100% electric. While original design of this line was to provide a connection for West-end residents to Centra Atlantida station and Line 18,
7739-480: The majority of P3 projects in Australia. Wall Street firms have increased their interest in PPP since the 2008 financial crisis. Government sometimes make in kind contributions to a PPP, notably with the transfer of existing assets. In projects that are aimed at creating public goods , like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant so as to make
7848-410: The middle of the street, near areas of heavy pedestrian activity. Platforms are elevated so as to be level with the floor of the bus. Passengers may access the station via stairways, street crossings, or in some places tunnels. Elevator access for the disabled is not presently available. However, individuals requiring accessible entry can cross the street to access transportation through gates painted with
7957-404: The modern electric grid . In Newfoundland, Robert Gillespie Reid contracted to operate the railways for fifty years from 1898, though originally they were to become his property at the end of the period. The late 20th and early 21st century saw a clear trend toward governments across the globe making greater use of various PPP arrangements. Pressure to change the model of public procurement
8066-551: The new Tarjeta Ciudadana (Citizen Card) became the default payment method. The card can be acquired at stations along line 12, line 13, and convenience stores that have been allowed to sell it across the city. After purchasing the card at a cost of GTQ.20.00, users will receive 5 free rides and can register their name on to it using a system similar to cards such as the SUICA card in Japan. As an additional incentive for riders to purchase
8175-427: The northern segment of the route to improve road conditions and exclusive traffic lane. This line also has an express service which bypasses most stations and travels directly to Paraiso Station, stopping at San Rafael Station on the way. Geographically, Paraiso is further than Atlantida, making it the northernmost station in the system. In early 2020, Transmetro completed the newest terminal station at Atlantida, renaming
8284-777: The ones on Line 12, except for the Bi-articulated buses. The change in bus types was done to allow the line to travel through the historic centre as the streets are narrower compared to those of the CA1 . Another interesting difference between Line 12 and Line 13 is that, when Line 13 was still a proposal, the developer promised to revitalize the areas where the Line would eventually operate. This revitalization included new monuments, better sidewalks, improvement of street vendor spaces, and others. Line 13 connects with Line 12 at "Plaza Barrios" and "El Calvario", creating seamless connections to
8393-537: The opening of Centra Norte in Zone 17. Phase 3 serviced the neighbouring city of Mixo, with one route providing regular service between Zone 7 and Mixco. This route was eventually taken over from SIGA by the Mixco municipality as they began operations of their Rutas Express service. Phase 4 was the last phase to start service and covered a number of under served zones, as well as provided local service connections to Transmetro Lines. This phase covers Zone 5, 13, and 15. Since
8502-737: The operating stage. These investments can be desirable but may also be undesirable (e.g., when the investments not only reduce operating costs but also reduce service quality). Public infrastructure is a relatively low-risk, high-reward investment, and combining it with complex arrangements and contracts that guarantee and secure the cash flows make PPP projects prime candidates for project financing . The equity investors in SPVs are usually institutional investors such as pension funds, life insurance companies, sovereign wealth and superannuation funds, and banks. Major P3 investors include AustralianSuper , OMERS and Dutch state-owned bank ABN AMRO , which funded
8611-729: The popular Colon Park (Parque Colon). Its stations began construction in October 2014 and the route was fully functional by April 25 of 2015. A trip from one end to the other takes an average of 50 minutes. As its name in Spanish describes, this line travels to the North West corner of the city. Departing from Plaza Barrios-FEGUA Station at 18th Street in Zone 1, ti travels through very important, high traffic areas and sites of interest like Colon Park. This line began operating on April 25, 2014, and continues to be under construction specially in
8720-430: The position that P3s do not constitute privatization, while P3 opponents argue that they do. The Canadian Union of Public Employees describes P3s as "privatization by stealth". Governments have used such a mix of public and private endeavors throughout history. Muhammad Ali of Egypt utilized " concessions " in the early 1800s to obtain public works for minimal cost while the concessionaires' companies made most of
8829-418: The private corporation's balance sheet is not straightforward. The effectiveness of PPPs as cost-saving venture has been refuted by numerous studies. Research has showed that on average, governments pay more for PPPs projects than for traditional publicly financed projects. The higher cost of P3s is attributed to these systemic factors: Sometimes, private partners manage to overcome these costs and provide
8938-610: The private sector, one of the Treasury's stated benefits of PPP. Supporters of P3s claim that risk is successfully transferred from public to private sectors as a result of P3, and that the private sector is better at risk management . As an example of successful risk transfer, they cite the case of the National Physical Laboratory . This deal ultimately caused the collapse of the building contractor Laser (a joint venture between Serco and John Laing ) when
9047-484: The private sector, these projects are always paid for either through taxes or by users of the service, or a mix of both. PPPs are structurally more expensive than publicly financed projects because of the private sector's higher cost of borrowing, resulting in users or taxpayers footing the bill for disproportionately high interest costs. PPPs also have high transaction costs . PPPs are controversial as funding tools, largely over concerns that public return on investment
9156-481: The private sector: When private companies take on a PFI project, they are deemed to acquire risks the state would otherwise have carried. These risks carry a price, which proves to be remarkably responsive to the outcome you want. A paper in the British Medical Journal shows that before risk was costed, the hospital schemes it studied would have been built much more cheaply with public funds. After
9265-699: The profits from projects such as railroads and dams. Much of the early infrastructure of the United States was built by what can be considered public–private partnerships. This includes the Philadelphia and Lancaster Turnpike road in Pennsylvania, which was initiated in 1792, an early steamboat line between New York and New Jersey in 1808; many of the railroads, including the nation's first railroad , chartered in New Jersey in 1815; and most of
9374-403: The profits of private entities. PPPs are often structured so that borrowing for the project does not appear on the balance sheet of the public-sector body seeking to make a capital investment. Rather, the borrowing is incurred by the private-sector vehicle implementing the project, with or without an explicit backup guarantee of the loan by the public body. On PPP projects where the cost of using
9483-473: The project economically viable. In other cases, the government may support the project by providing revenue subsidies, including tax breaks or by guaranteed annual revenues for a fixed period. Within public-private partnerships (PPPs), there are various risks associated. One risk common within PPPs is the lack of proper or accurate cost evaluation. Oftentimes the estimated costs of a project will not properly account for delays or unexpected events, leading to
9592-1036: The public sector was opposed to its implementation. In 1993, the Chancellor of the Exchequer described its progress as "disappointingly slow". To help promote and implement the policy, Major created institutions staffed with people linked with the City of London , accountancy and consultancy firms who had a vested interest in the success of PFI. Around the same time, PPPs were being initiated haphazardly in various OECD countries. The first governments to implement them were ideologically neoliberal and short on revenues : they were thus politically and fiscally inclined to try out alternative forms of public procurement. These early PPP projects were usually pitched by wealthy and politically connected business magnates . This explains why each countries experimenting with PPPs started in different sectors . At that time, PPPs were seen as
9701-413: The purchase of various luxury goods, including cars, cottages, and helicopters, as well as funding Baldizón's 2011 and 2015 presidential campaigns. in 2018 a judge handed various sentences and fines to eight people found guilty of various instances of money laundering and who were associated with those involved. Ex-president Álvaro Colom was ordered to pay a GTQ 1 million bail, and was prohibited from exiting
9810-483: The rate of non-P3 schools. In Ontario, a 2012 review of 28 projects showed that the costs were on average 16% lower for traditional publicly procured projects than for PPPs. A 2014 report by the Auditor General of Ontario said that the province overpaid by $ 8 billion through PPPs. In response to these negative findings about the costs and quality of P3 projects, proponents developed formal procedures for
9919-489: The relationship is contractual, a franchise, or the load shedding of some previously public service to a private or nonprofit entity." A more general term for such agreements is "shared service delivery", in which public-sector entities join with private firms or non-profit organizations to provide services to citizens. There is a semantic debate pertaining to whether public–private partnerships constitute privatization or not. Some argue that it isn't "privatization" because
10028-494: The risk was costed, they all tipped the other way; in several cases by less than 0.1%. Following an incident in the Royal Infirmary of Edinburgh where surgeons were forced to continue a heart operation in the dark following a power cut caused by PFI operating company Consort, Dave Watson from Unison criticized the way the PFI contract operates: It's a costly and inefficient way of delivering services. It's meant to mean
10137-615: The routing was changed to operate entirely within Zone 5 through using Diagonal 14 for most of its route. The line started operations and was branded as being "operated by TUBus", in May of 2024. The line uses Diesel buses also used by TUBus routes but makes less frequent stops akin to the BRT service of Transmetro lines. Transfers to Line 6, 18, and 13 are only possibly by walking to the adjacent stations of Colon for lines 6 and 18, and Banco de Guatemala for line 13. Line 17, along with Line 5,
10246-441: The service is intended to be borne exclusively by the end-user, or through a lease billed to the government every year during the operation phase of the project, the PPP is, from the public sector's perspective, an " off-balance sheet " method of financing the delivery of new or refurbished public-sector assets. This justification was particularly important during the 1990s, but has been exposed as an accounting trick designed to make
10355-414: The services is borne wholly or in part by the government. Typically, a private-sector consortium forms a special company called a special-purpose vehicle (SPV) to develop, build, maintain, and operate the asset for the contracted period. In cases where the government has invested in the project, it is typically (but not always) allotted an equity share in the SPV. The consortium is usually made up of
10464-556: The standard model of public procurement based on competitively tendered construction of publicly owned assets. In 2009, the New Zealand Treasury , in response to inquiries by the new National Party government, released a report on PPP schemes that concluded that "there is little reliable empirical evidence about the costs and benefits of PPPs" and that there "are other ways of obtaining private sector finance", as well as that "the advantages of PPPs must be weighed against
10573-434: The system. Routes such as 263, 268, and 265 had some stations relocated as a result. Major terminals like CENMA, Centra Norte, and Centra Atlantida are operated and maintained by the municipality of Guatemala. Security at bus stops consists of CCTV cameras, and an emergency intercom connected to a local police station. The original rolling stock also featured a GPS system for location tracking of each unit. A women-only service
10682-505: The temporary Trebolito Station, which was close to the Trebol Station, and a temporary Station at the municipal office in Zone 21. The service become a permanent line which provides easier access to the university campus from Line 12. In 2019, the service was complemented by the opening of the Line 7 service which provides students with options for westbound service. The line was named after its southern terminus, located in Zone 21. In
10791-454: The terminal to "Centra Atlantida ". This new terminal also provides direct transfers to local Transurbano Routes in the 300 Series. In the 2023 service update, the express service was replaced with all-day local service, stopping at Centra Atlantida along the way. Additionally, FEGUA and Plaza Barrios were no longer noted as interchange stations, despite a walking connection remaining available to Line 12. Line 7 began service in late 2019. The
10900-462: Was a temporary line, it was marked on the system map as the pink line. 2019 saw the opening of "Line 7", even though some stations were still under construction. Line 21 was made permanent at this time, after proving to be popular as a connection to Trebol station. It would not be until 2020 when all Line 7 stations are open to the public. At the same time, the new mayor announced plans to phase out cash-fares. This process would be completed in 2021 with
11009-492: Was announced to be under development by the Municipality of Guatemala in March 2021. This line would use a different rolling stock from the standard Marcopolo BRT, instead using a set of city-style buses which are 100% electric. The goal of the line was to provide a connection for North-west and West-end residents to the Centra Atlantida station and Line 18. The line would also intersect with some Transurbano Routes and
11118-427: Was associated with the neoliberal turn. Instigators of the policy portrayed PPPs as a solution to concerns about the growing level of public debt during the 1970s and 1980s. They sought to encourage private investment in infrastructure , initially on the basis of ideology and accounting fallacies arising from the fact that public accounts did not distinguish between recurrent and capital expenditures. In 1992,
11227-496: Was certified as "Gold" under the BRT Standards in 2014. In the 2023 service update, all direct transfers were removed, meaning passengers traveling on the line can only connect to other lines by walking a short distance to nearby stations. Additionally, several stations in Zone 1 were closed, while Santa Cecilia station was added. (Rush hours only) The second line to be opened, Corridor Central or Eje Central, runs through zones 4, 9, and 13 of Guatemala City. The buses are similar to
11336-439: Was down to 45.4%. Performance monitoring is a general concern from these surveys and in the scholarly criticisms of these arrangements." After a wave of privatization of many water services in the 1990s, mostly in developing countries, experiences show that global water corporations have not brought the promised improvements in public water utilities. Instead of lower prices, large volumes of investment, and improvements in
11445-543: Was established in 2011 in order to prevent and reduce assaults on the system. The service was operated during rush hours only with specially designated units. The system has faced numerous controversies that have had major impacts on its operations and have brought its effectiveness into question. According to passengers, the gates installed inside buses to prevent fare evasion on the initial units are too small, making it quite difficult for people with disabilities, overweight, or mobility devices to get through. The introduction of
11554-478: Was expected to share some stations. This project was put on hold as the city moved forward with Line 15 instead. Since the announcement of TuBus operations by the city, this previously proposed line and its alignment will now be used for the route traveling between Centra Atlantida and Lomas del Norte in Zone 17. Line 15 was announced to be under development by the Municipality of Guatemala in July 2021 The project
11663-454: Was no more efficient than other forms of borrowing and it was "illusory" that it shielded the taxpayer from risk'. One of the main rationales for P3s is that they provide for a transfer of risk : the Private partner assumes the risks in case of cost overruns or project failures. Methods for assessing value-for-money rely heavily on risk transfers to show the superiority of P3s. However, P3s do not inherently reduce risk, they simply reassign who
11772-415: Was pushed to February 2007 when phase one, named "Eje Sur" (South line), began revenue service in the city. When the buses started to operate on the southern line, regional buses or " chicken buses " were banned from entering the city from the south. The change effectively made travelling the CA1 much faster compared before the line began to work. After a successful 3-years of operation on the initial line,
11881-531: Was to promote and implement PFI. PUK was central in making PPPs the "new normal" for public infrastructure procurements in the country. Multiple countries subsequently created similar PPP units based on PUK's model. While initiated in first world countries , PPPs immediately received significant attention in developing countries . This is because the PPP model promised to bring new sources of funding for infrastructure projects in transition economies , which could translate into jobs and economic growth . However,
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