Project Overview

How inclusivity has been addressed

The identified practices are a strong and well defined business case, integration of ancillary revenue, and an optimised fare policy to achieve financial sustainability, affordability, accessibility and inclusivity.

Decree No. 1980, in 2014, created a new state-owned enterprise (SOE) to procure a turnkey project for the design and construction of three cable car lines. The new entity was called Mi Teleférico and it was responsible for the operation and maintenance of the new asset for the state. It was also tasked with defining the business plan, governance, operation and finance of the project, and ensuring sustainability, accessibility, availability and inclusivity goals were achieved. As an autonomous stateowned enterprise, Mi Teleférico has the authority to self-govern and to implement all of its business decisions.All revenue generated is managed and retained by the company after taxes.

The Central Government was solely responsible for financing the initial investment capital for the construction of the project, including all capital expenditure and the creation of the SOE for the cable cars. The National Treasury of Bolivia provided 100% of the financing for Phase I. Financing for Phase II involved a more complex financial structure, and was provided by the Central Government, with a loan from the Inter-American Development Bank also under consideration.

Implementation

Mi Teleférico Business Strategy Plan 2016-2020

Mi Teleférico is one of the very few mass transport projects in the world that does not require public subsidies for operations and maintenance. Less than four years after it began operation, it carries a net surplus of USD 5.8 million from an initial investment of USD 234 million^[3], delivering a period return of 2.5%.

In 2016, the operator developed a business plan with a clear competitive, financial and market analysis. The objectives, structure and implementation of the new cable car project were clearly defined and justified in its Business Strategy Plan 2016-2020^[4]. The plan included:

• a legal framework;
• external analysis of the macro-economic environment;
• internal analysis of the national economic and financial environment;
• risk identification and management;
• value proposition;
• market analysis;
• go-to-market plan;
• corporate structure and governance;
• key performance indicators (KPIs) within predetermined timelines;
• financial reporting and analysis; and
• technical feasibility analysis.

Fare optimisation policy

The main objective of the project was to provide a modern, clean, safe and accessible public transport system that would serve all members of society. The operator set upfront objectives and guiding principles before design options were generated and assessed^[5]. Based on these principles, it was able to set the fare policy to achieve its financial sustainability goals while also reaching its social inclusion objectives.

In a 2015 survey^[6], cable cars represented 2% of the share of transport modes available between El Alto and La Paz. The cable car system is priced higher than the minibuses and microbuses at USD 0.43 (BOB 3, 2017 exchange rate) for a one-way trip. Based on empirical data^[7], passengers travelling on Mi Teleférico reduced their average daily travel time by 22%, representing a net economic benefit of USD 0.58 per person (opportunity costs saved to pursue more work, schooling, services, etc.).

For people with mobility challenges (disabled, the elderly, pregnant women, small children), the cable car system is the only reliable and safe option for travelling between El Alto and La Paz. A concessionary fare is available for passengers with disabilities, the elderly and students at a 50% discount or USD 0.20 (BOB 1.5) per one-way trip. In 2017, Mi Teleférico reported 138 trips per day from 2,186 passengers with disabilities, which represented 5.2% of citizens registered with disabilities in the La Paz metropolitan area.

The correct positioning of Mi Teleférico’s fare policy, which is based on affordability and willingness to pay, contributed to the financial sustainability of the project and unlocked further socioeconomic benefits for all of its users.

Figure 2. Mi Teleférico electronic card reader.
Source: The City Fix

Ancillary revenue

Mi Teleférico offers an array of ancillary services to the public, institutions and firms. In return, it generates a significant portion of its total revenue from the rental of its commercial spaces, advertising platforms, parking etc. The provision of these services supports operation and maintenance costs, diversifies revenue streams and mitigates the commercial risk from changes in ridership. The revenue from these complementary businesses supports the financial sustainability of Mi Teleférico and increases private sector participation and opportunities for small businesses.

Figure 3. Revenue from farebox and ancillary business
Source: Mi Teleférico Annual Reports 2014-2017

How inclusivity has been addressed

The identified practice is the use of the private sector’s expertise to introduce new technologies that help to embed inclusivity objectives and train local workers.

Bolivia’s leaders had been planning the cable car system for the cities of El Alto and La Paz since the 1970s. In 2012, Law No. 261 was enacted to authorise the Ministry of Public Works, Services and Housing to procure a specialist cable car provider to implement and deliver a turnkey project for three lines of the cable car system.

Doppelmayr Garaventa Group was awarded the contract for this first phase, as well as for four additional lines in Phase II.

Doppelmayr’s role was to provide:

• the technical design, engineering, project management, and construction of the stations and ropeway;
• the fleet of cable cars, and;
• the training of local staff for operations and maintenance.

Doppelmayr provided the technological and technical expertise to build and operate the cable car system based on the unique topography of the cities. It also helped the project meet the required environmental, accessibility and inclusion objectives of the Bolivian Government, such as providing facilities for passengers with disabilities, lowcarbon emission technology and safety initiatives.

Implementation

Doppelmayr was the sole contractor for the design, engineering, construction and provision of the cable cars. As a turnkey contractor, the private firm was directly contracted to provide all the technology solutions to achieve Mi Teleférico’s objectives.

Training

There is a clause in the contract that requires Doppelmayr to train local Bolivians in all technical aspects of the project. The contractor provided capacity building under the philosophy aprender haciendo, that is, learning by doing or on the job training, where international experts provide advice, train, and transfer knowledge to Bolivian workers in relation to technical assistance, engineering, design, operations and maintenance.

Universal Design

The project uses Universal Design standards to help ensure facilities are accessible to all users. The stations have ramps, elevators and tactile paving to help disabled passengers.

Smart mobility technology

Smart mobility technology, both software and hardware, has been incorporated into the design of the stations, such as the proprietary Passenger Information Systems for announcements, mobile apps, smartcard tickets, public address systems, telecommunication network coverage (including WiFi), fire alarm systems, biometric controls, electronic access gates, ‘smart point’ top-up machines, fibre optics, radio communication systems, internet and CCTV systems.

Energy efficiency technology

To improve energy efficiency solar PV panels have been installed on every cable car. They supply the electricity for the internet connections, lighting and communication systems. In the stations, LED lighting has been specified to reduce 49% of electricity consumption.

Mi Teleférico is 100% electric. Most of its power requirements are supplied by hydroelectric power plants in El Alto.

Figure 4. Elderly passenger assisted by station attendant Source: The City Fix

How inclusivity has been addressed

The identified practice is early and extensive public stakeholder engagement during the design and operations phases of the project.

Stakeholder engagement has helped authorities to win the support of people living near the cable car route and, in particular, identify where towers and stations would be located. They used meetings and fairs to engage with people throughout the design and construction phases and communicate the key benefits of the project.

The 2014-2018 Mi Teleférico Report states that:

• between 2015 and 2018, there were more than 800 meetings with residents, social organisations and authorities with 4,948 attendees;
• 160 meetings were held with local groups, attracting 14,891 attendees;
• 188,697 people participated in 302 fairs; and
• more than 50 school groups visited the facilities to learn more about the project.

Prior to the start of work on Phase II, more than 20,000 citizens were consulted during a series of public events.

Implementation

Focus groups and workshops with vulnerable community members

During the design stage of the project, focus groups and workshops were held with people with disabilities and the elderly to ensure their needs were understood and taken into consideration. The focus group meetings were arranged by the Vice Ministry of Transport and were invitation-only events. In the interview with Mr. Cesar Dockweiler, the CEO of Mi Teleférico, he stated that although the draft project met most of the requirements identified by the groups, people’s feedback was useful in planning for the operation of the system.

Through their engagement with the community, operators also helped to explain to people how the cable car system would work, as it required a major cultural shift. People would now need to use transport stops and show patience while waiting in queues to create order, discipline and shared values.

Creation of a website to educate users

A website was set up for users^[8]. It provided information on the system and how to use it, as well as information on the mission and values of Mi Teleférico and relevant legislation. The site also includes links to forms for complaints and shares operational details. In 2018, a mobile phone application was launched to create an even stronger connection with users.

Capacity building and training for vulnerable groups

During operations, capacity building and training has also been undertaken to help vulnerable groups and job seekers to gain employment, and to ensure that people working in the system are trained to assist people with specific needs. For example, in 2016, 59 different types of capacity building activities were completed. They included the maintenance of electrical equipment, first aid, evacuation procedures, fire prevention, Constitutional rights, construction, and technical training. Between January 2017 and March 2018, 136 employees were trained to assist people with disabilities. Training is also provided to help people with disabilities in the workforce. Employment opportunities are provided to people with disabilities and women in Mi Teleférico, who currently represent 4% and 36% of the workforce respectively.

A program titled Trabajo con Altura (which translates to “Working with high values”) aims to benefit young people who are looking to obtain work experience, and is aimed at public servants and users of Mi Teleférico. Between 2014 and 2018, 886 young people graduated from this program. Additionally, about 30 students have completed internships in the operations, maintenance and finance departments, as well as the project management unit of Mi Teleférico.

Supervision and monitoring

During the design phase, information on KPIs was collected as a baseline. The number of indicators has since been expanded.

During the operations phase, monitoring is undertaken and reported annually in relation to the service level (e.g. the quality of the service, number of users, punctuality, perception of the service, and complaints), and number of users (including disaggregation of those with preferential tickets – people with disabilities, students and the elderly). This is recorded in yearly reports (2015, 2016 and 2017), which are published on issuu.com. A report was also issued in March 2018, covering the period May 2014 to March 2018^[9].

A socioeconomic survey is planned in 2020 to understand the impact on people who live closer to stations, people who regularly use Mi Teleférico, and people who cannot enjoy the benefits of the service. It is intended to establish:

• how has life changed for people with access to Mi Teleférico; and
• how has life changed for people without access to Mi Teleférico.

The operator will compare areas with and without access to be able to analyse the impacts of the cable car system.