Public transportation services (2009)

Public transportation services (2009)

In 2009 CASE Belarus was operating the grant of Polish Ministry of Foreing Affairs titled “Fostering private participation in provision of public transportation services in Belarus”. The aim of the project was to create and present the concept of privatization of the public transport services and infrastructure in Belarus.

Background
The government of Belarus declares that transportation sector should undergo significant market reforms and become quite more open for private capital. For instance, special program of the Council of Ministers says that the majority of state-owned transportation companies are to be privatized in 2008-2010. The transport regulation policy is being constantly shaped and is coming closer to the Western patterns, including EU. This creates a scope for cooperation and support from CASE Belarus in order to shape the Belarusian transport regulation policy in line with the best EU practices.

Objective
The project provided Belarusian policy makers both in the government and the Parliament with the Concept of privatization of public transportation system in Belarus, along with recommendations how to implement it.

Outcomes
1. Concept of privatization of public transportation system in Belarus (in Russian)
2. Policy paper with recommedations on privatization of public transportation system in Belarus (in Russian)
3. Presentation by Dzmitry Babicki at the final conference (in Russian)
4. Presentation by Dzmitry Sokal (in Russian)
5. Final conference program (in Russian)

Key findings
1. The current system of public transport regulation in Belarus is not effective and services provided to the citizens are of poor quality. Reforms and privatization of the sector are needed in order to increase the quality of services provided by transportation companies.
2. A fair competition at the public transportation services market between state-owned and private companies is absent with high dominance of the first. Yet the financial condition of state-owned enterprises is far from ideal.
3. The key proposals of change include:
i) introduction of independent system of regulation through the institute of independent operator;
ii) introduction of the system of routes contracts;
iii) vertical desintegration of state-owned transport companies;
iv) introduction of the system of transportation subsidies according to the rates indicated in routes contracts.

Achievements
The results of the project were widely distributed and approached directly decision makers in government structures such as Ministry of Transport, Ministry of Economy, Council of Ministers, Special committee in the Parliament, as well as HQ of Belarusian association of international carriers, scientific institutions, associations of entrepreneurs, and others institutions.

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