Budapest Urban Transport Project

The overall objective of the Budapest Urban Transport Project is to support the urban transport reforms undertaken by the City of Budapest and Budapest Transport Company (BKV). Specific objectives are to: 1) modernize and increase the commercial orientation of BKV; 2) implement a parking countrol policy; 3) decrease subsidies to BKV by reducing operating costs, increasing tariffs and separating noncore activities, and by introducing the private provision of public transport services; 4) contribute to the improvement of air quality in Budapest; and 5) establish a formal contractual relationship between BKV and the City of Budapest. The project will consist of: 1) the replacement of 50 worn-out buses with low-polluting and energy-efficient substitutes; 2) the rehabilitation of about 47 km of wornout tramway tracks and the purchase of track maintenance equipment; 3) the second phase of an automatic vehicle monitoring system; and 4) technical assistance and training in financial management, economic evaluation of projects, marketing, organization, and technical issues.