Connections Transport & ICT Lima Urban Transport: 102769 On the Way to Transformation Georges Darido, Daniel Pulido, Felipe Targa, Bernardo Alvim, and Tatiana Peralta-Quirós The implementation of Metro Line 2, now under way, 2.3 million will provide a modern, 35 kilometer mass transit axis linking major population and job centers in Lima—the capital of Peru—with Callao to the west, the country’s chief seaport and international airport. Integrated with the Lima-Callao region’s existing public transport network, Line 2 will create a major corridor that will improve the accessibility of jobs, services, and markets for 2.3 million people and provide a backbone for more Population in the 13 efficient urban development. Beyond the investment districts of Lima and Callao loan, this cofinanced project is an outgrowth of a long- considered the areas of term metropolitan transport strategy and multifaceted influence for Metro Line 2 engagement that is aligned with the World Bank’s goals of reducing poverty and boosting shared prosperity through sustainable development. It will give a boost to the competitiveness of the entire Lima- Callao Metropolitan Region, which has a population of more than 9 million and constitutes more than one-third of the national economy. Challenges and Progress to Date passengers per day, but there is still much to do, as this nascent mass transit system carries less than As the urbanization of Peru continues, the coun- 10% of the public transport trips in the LMR. try faces severe constraints in making its growth sustainable. A key problem is the past underinvest- The vast majority of motorized trips are still made ment in transport infrastructure, which limits access with largely unregulated, low-capacity vehicles to jobs and services in many urban areas, especially that compete for customers on the street. Essential for the poor who tend to live in peripheral areas. to realizing the economic potential of the LMR in a sustainable and inclusive way is expanding the The Lima-Callao Metropolitan Region (LMR) grew mass transit system and strengthening transport rapidly in the past decade and is now one of the policies with complementary investments. most congested and polluted in Latin America. The launch of service on the Metropolitano bus rapid transit system in 2010 (supported by a World Bank The Metro Line 2 Project investment loan) and on Metro Line 1 (elevated rail) Metro Line 2 is the first priority in a 168 km mass in 2011 were tremendous steps forward for the LMR. transit Master Plan for LMR approved by the The two lines together now carry about 1 million OCTOBER 2015 NOTE 22 government of Peru in 2010. Once completed and signed in April 2014, covers every phase of the integrated with the public transport network, Line project, from design through financing, construc- 2 is expected to carry 660,000 passengers per day tion, operation, and maintenance. Thus, it is one of and influence the region’s long-term development the world’s few “fully bundled” PPPs in the urban in many ways. transport sector. • Expanding the mass transit network improves op- Line 2 will also include state-of-the-art construction portunities for all by reducing the travel time and technologies and a “driverless” automated system expense required to access jobs, markets, and to operate the trains that is expected to reduce services such as health and education. operational costs. • Universal design features will accommodate peoples with disabilities and other disadvan- taged groups. Investment and Engagement • Transit integration will reinforce complementary At a cost of more than $5.3 billion, with about 20% actions for a transport system that reduces ac- of the financing coming from the private conces- cidents, air pollution, and noise. sionaire, Metro Line 2 is one of the largest and most • The integrated transit corridor constitutes the ambitious investment projects in the history of the backbone of an inclusive urban development country. A $300 million loan from the International process that will promote more efficient land use Bank for Reconstruction and Development to the and boost competitiveness. government of Peru will support the public contri- bution to the concession. The government has also Improving Mobility and Accessibility secured financing from the Inter-American Devel- opment Bank and the Development Bank of Latin About four-fifths of public transport users in the America (CAF) and may be negotiating with three LMR are in the bottom 40% of the region’s income other international financing institutions. distribution. A single “megaproject” such as Line 2, however • On average they spend more than 20% of their large, does not by itself guarantee the needed income on transportation (while the overall aver- transformation. Also required will be integration age for the region is about 13%). with land development, surface transport reform • They make 30% fewer trips overall than do the policies, complementary investments, and partner- rest of the population because of long travel ships with local governments. times or high costs. The World Bank is working with governments at More than 60% of the estimated ridership for Metro the national and local level and with partner financ- Line 2 will come from other modes of transporta- ing institutions to leverage a plan for coordinated tion, making modal integration a key objective. By technical assistance and institutional strengthening linking Line 1 with the Metropolitano BRT and the in several key areas: future Line 4 and urban feeder services, the Line 2 Project could increase the number of jobs available • Integrated transit fare policies that are socially within a 60-minute commute by as much as 25%. progressive and financially sustainable • Reorganization of other public transport modes to feed and complement Line 2 Innovative Delivery Approach • Concepts for transit-oriented development • Communications and citizen engagement The Metro Line 2 Project is pioneering on many strategies fronts. It will be implemented in stages under a • A joint and rigorous impact evaluation study public-private partnership (PPP) arrangement that remunerates the concessionaire for milestones For more information on this topic: completed. The 35-year concession contract, http://documents.worldbank.org/curated/en/2015/09/24952460/ peru-lima-metro-line-two-project Connections is a weekly series of knowledge notes from the World Bank Group’s Transport & Information and Communication Technology (ICT) Global Practice. Covering projects, experiences, and front-line developments, the series is produced by Nancy Vandycke and Shokraneh Minovi. The notes are available at http://www.worldbank.org/transport/connections OCTOBER 2015 NOTE 22