1. STIB- David Rispoli STIB - MIVB Brussels Public Transport Company December 2004

2. STIB- David Rispoli Presentation 2 Preparation and monitoring of contract 1 Organisation of public transport

3. STIB- David Rispoli Brussels

4. STIB- David Rispoli Its legal status Private company till 31 December 1945. Intervention of the State due to the shortage of investments of the private sector after WWII. Law of December 1953: creation of the STIB public-private company (50 % - 50 %). In 1978, nationalisation of the STIB by acquisition of the private shares. In 1989, regionalisation of the Belgian State, the STIB is fully owned by the Brussels Region. Characteristics of the STIB

5. STIB- David Rispoli Strategic mission (Region & STIB) = determine the general objectives Tactical mission (STIB & Region) = determine what services are needed Operational mission (STIB) = determine how to produce these services Other missions (STIB) Our mission(s)

6. STIB- David Rispoli 1. Organising authorities Belgium is a federal state. The federal authority is responsible for railways, air transportation and road regulations. The Flemish (N) and the Walloon (S) Regions are responsible for the urban and interurban transportation.

7. STIB- David Rispoli Brussels is a small region (161 km²), that is competent (and accountable) for public transport, but serving a public well outside its administrative boundaries 1. Organising authorities (2) Municipalities (19 in Brussels) are (still) responsible for parking policy and for enforcement by local police.

8. STIB- David Rispoli 2. Operators Flanders = VVM - De Lijn* Brussels = STIB* Wallonia = SRWT - TEC* * =Operating companies

9. STIB- David Rispoli Each company has its own fare policy but in the Brussels area, there is a fare integration between trains, trams, metro and buses. Railways operator = SNCB- NMBS 2. Operators (2)

10. STIB- David Rispoli Authority initiative (Delegated management) The authority gives exclusive rights to the operator in the Region. 3. Right of initiative to create PT services 4. Level of regulation of the market Regulated market Region monitors STIB performances STIB proposes the level of services to the Region for approval

11. STIB- David Rispoli Staff: under contracts by operator Definition of services: operators responsability level of production fixed in the contract Pricing: operator introduces tariffs propositions approved by government. Integration: exists between operators Information and promotion: operators initiative Rolling stock: operators ownership Infrastructure: facilities and surface tracks owned by operator; metro belongs to the Region 5. Share of responsability

12. STIB- David Rispoli clear trend towards public tendering transparency of financial flows (subsidies) clarification of the roles key words for modern companies: client focus, responsibilisation, internationalisation, diversification. 6. Changes in recent years

13. STIB- David Rispoli Plan IRIS is the Regional plan for territory planification Objective for transport in the Plan IRIS –increase of 45 million travels/year by 2010 –increase of 15 million travels/year by 2005 Increase market share of PT 6. Planning environment

14. STIB- David Rispoli 2 Preparation and monitoring of contract 1 Organisation of public transport

15. STIB- David Rispoli The management agreement an agreed level of client related production; control of the quality of our service (CEN - norms); cost efficiency and optimisation of revenue Targets: 5 years contract possibility of one year extension Duration:

16. STIB- David Rispoli affirming STIB in its tactical role Some new elements: new formula for the regional subsidy (influenced by our success in conquering new clients) greater autonomy in the field of fare policy new instruments to convince the municipalities to collaborate (axis contracts).

17. STIB- David Rispoli Increase capacities Establish Tram and Bus plan for 2005-2010 Replace old trams by high capacity vehicules Establish metro plan for 2005-2010 Buy new metro carriages (boa series) Increase attractivity of services Increase frequencies Extend tram and metro network Develop new services (Car-sharing, transit parking, bicycles parking) Tactical role:

18. STIB- David Rispoli Infrastructure for the underground, the development of the network and the improvement of the commercial speed on the surface network are financed directly by the Region. Investments in rolling stock, in tracks and in buildings are financed directly by STIB, which disposes for that purpose of a regional endowment and can raise loans. Financial provisions

19. STIB- David Rispoli In fact, the regional endowment is intended for the operation as well as for investments. This is a global endowment, indexed annually and variable according to the evolution of the receipts. An additional endowment is granted by the Region for specific projects concerning security and service quality. The Region guarantees the rhythm of periodic payments of the endowments. As the receipts are acquired by STIB, the commercial risk is covered by the operator, who must present balanced accounts. Financial provisions (2)

20. STIB- David Rispoli Every six months, STIB transmits to the Brussels government the balance sheet, the profit and loss account, a debts survey and a statement of investments. The assessment mechanism is centred on four aspects: –assessment of the respect of the commitments –assessment by the public of the supply and the service performance –procedure aiming at solving key problems through progress meetings –assessment of the environment. Monitoring

21. STIB- David Rispoli The first of these aspects leads to the application of a "bonus-malus" system for: –respect of the scheduled kilometre production –financial transparency –CEN certification of the services. When the kilometre production falls under a threshold of 96 %, a malus (penalty) is applied. Incentives: Bonus/malus scheme