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Tender: Reorganisation of Public Transport Company, Efficiency and Financial Sustainability Improvement


Kyiv, Ukraine, 10 June 2015

The City of Kyiv (the “City”) with the population of 2.8 million people is the capital of Ukraine and is a financial, commercial, political, scientific and cultural centre. The City is currently receiving financing from the European Bank(the “Bank”) for the Kyiv City Public Transport project (the “Project”).

The City coordinates transport service supply through licensing and tariff setting and monitors the provision of services through a Central Dispatching Service. Urban transportation services are the responsibility of the City’s Transport Department for Public Services.

The Metro as well as tram and trolleybus services will remain an essential service for inhabitants with lower income and those eligible for concessionary fares. Kyiv Metro and Kyiv Pastrans are expected to retain their market share and the role as the backbone of the transport system, providing frequent and relatively higher capacity services at more affordable prices.

Kyiv PasTrans (the “Company”), a public transport company wholly-owned by the City, responsible for the provision of ground services (bus, trolleybus, tram and light rail). The Company operates 20 tram routes using 436 trams, 38 trolley routes using 546 trolleybuses, 140 bus routes using 1,645 buses, plus one funicular railway. The Company employs approximately 9,419 staff.

The Kyiv City Council sets tariffs for public transport services (until last year with approval at the Ministry of Infrastructure level, a practice that has now been discontinued). The tariffs were increased 2 times per cent starting from February 2015. A single flat-rate metro ticket costs UAH 4 (EUR 0.16) significantly below prices of either Warsaw (EUR 1.05) or Sofia (EUR 0.51). A single flat-rate tariff for public on the ground transportation has also been increased 2 times to UAH 3 (EUR 0.13) which is also significantly below the European levels. The privileged/concessionary passenger fares are funded from the State budget (with delays and insufficiently) apart from students and pupils who are co-funded by the municipal budget covering 50 per cent of the full price.

The Company is currently developing a reorganisation plan focused on key service delivery indictors and efficiencies.  The Bank’s financing is focusing on renewal of the rolling stock but is conditioned upon the reorganisation plan being timely implemented and as part of the project, the Company will have to improve its corporate governance, maintain financial ratios and other covenants of the legal agreements.

Assignment Description

The Company wishes to engage a Consultant (the “Consultant”) to help develop and implement the Reorganisation aimed at improving efficiency and financial sustainability of its operations.

The Consultant shall assist the Company in improving its commercial standing, service and environmental performance by helping to identify and implement the necessary corporate, financial and operational improvements required to meet the related covenants included in the Bank finance documents and to implement the Reorganisation. This will be achieved via the development and implementation of the FOPIP and of a detailed strategy to roll out the Reorganisation. The Consultant shall also assist the Company in implementing the Reorganisation and to develop short and medium-term focused corporate development plans and to improve their corporate planning capacity to assist their ongoing transition towards becoming self-sustaining entities and commercial operations.

The selected Consultant is expected to:

  • assist the Company in identifying and implementing the necessary corporate, financial and operational improvements, including the Reorganisation, to meet the related covenants included in the Bank finance documents. This will be achieved via the development and implementation of a Financial and Operational Performance Improvement Programme (“FOPIP”);

  • assist the Company in developing and implementing a short to medium term focused Corporate Development Plan (“CDP”) and corporate planning process, so it may continue its transition towards an entirely commercial operation;

  • propose amendments to the existing Public Service Contract (“PSC”) and assist the Company with negotiations and signing of the amended PSC with the City. 

Assignment Start Date and Duration: The Assignment is expected to start in Q3 2015 and has an estimated overall duration of 12 months.

 

Submission Deadline: 26 July 2015

Also view the ECN Procurement Notice (accessible by ECN Executive Members - Login to View)

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