Helping improve bus services around Ulaanbaatar in Mongolia

Rebel supported restructuring of bus and ticketing services in Ulaanbaatar, preparing the ground for a revolution of urban transit across key corridors of Mongolia’s capital: bus rapid transit.

Resolving challenges of implementing a BRT
Changes in the public transport sector in Ulaanbaatar have led to the Municipal Government of Ulaanbaatar facing institutional challenges for the development of a city-wide bus rapid transit (BRT) system in Ulaanbaatar. The government therefore required specialised assistance in resolving them. The past years the transport system in the city has failed to attract passengers, troubled by declining service standards. The implementation of a bus rapid transit system is bound to change that, if the government is able to reorganize existing transit and ticketing services and put them on a solid footing.

Financial advisory services provided
Rebel was asked to help resolve the various institutional and financial challenges confronting the bus transport sector in the city. We reviewed the regulatory framework and cost structure of the current bus companies and assessed the financial status of their operations. Along the way we helped to develop a standard cost methodology for bus operations. Supporting the turn-around of a new and troubled e-ticketing system contract we reviewed the technology partner’s contract and highlighted the appropriateness of different e-ticketing commercial models. Finally we carried out a high level assessment of the planned BRT service as its business plan and service offering is gradually taking shape.

General agreement between parties
The assistance provided through support of the ADB is to resolve the existing challenges of the bus sector and result in the preparation of a recommended general agreement on service and business plans for bus operations, BRT operations, and e-ticketing system PPP. As a long-term perspective, ADB and the government anticipate that these will ultimately lead to a full-fledge BRT network with modern stations and transit IT systems.