MEGABUS joins the Kyoto protocol

(Pereira, September 4, 2007).- An important agreement on sales of carbon emission reductions was signed today by representatives of the Andean Development Corporation in Colombia and the manager of Megabus, Mónica Vanegas Betancourt.

Thanks to this agreement, Megabus will be the first system of this type in an intermediate city to introduce the Clean Development Mechanisms (CDM), adapting its operations to the terms of the Kyoto Protocol.

Greenhouse gas emission reductions achieved by the Megabus system will be recognized internationally and on the carbon market, following negotiations by CAF on behalf of the Dutch government. It is estimated that MEGABUS will reduce carbon dioxide emissions by approximately 130,000 tons between 2008 and 2012 by increasing the efficiency of passenger transport in its operating areas.

CAF representatives emphasized the Corporation's interest in promoting this type of project in favor of sustainable development. "This particular case generates a double benefit because the funds channeled through the carbon certificates market should help developing countries achieve some of their economic, social, environmental objectives through sustainable development, accompanied by social benefits, such as rural development, employment, poverty reduction and in many cases reduced dependence on imported fossil fuels," the CAF officials said.

Megabus manager Mónica Vanegas Betancourt expressed her satisfaction about the fact that after only one year of operation of the Pereira and Desquebradas mass transport system, important benefits are beginning to be seen in the quality of life of the inhabitants and a process is starting which will generate resources for the municipalities. "Once more our region consolidates its position as the intermediate city which sets the pace in mass transport processes in Colombia," she said.

Pereira Mayor Juan Manuel Arango Vélez said the project was part of his administration’s commitment to environmental and social responsibility.

The Megabus mass transport system operates in the municipalities of Pereira, Dosquebradas and La Virginia, improving travel between these localities. About US$65 million has been invested in its operation and new investments of US$35 million are projected.

Road adaptation for the start of Megabus involves construction of 25.4 kilometers of trunk routes, with 53 articulated buses and 83 feeder buses. These changes represent savings of 32 minutes in travel time between one extreme and the other of the benefited cities, and 37% cut in fuel consumption. The system also has international recognition from the Washington Institute for Transport and Development Policy to improve the habitat of the community and reduce pollution.

Megabus makes a significant contribution to the sustainable development of the city by reducing greenhouse gases (GHG) and other emissions, especially CO2, particulate material and nitrous oxides, contributing to reducing global warming, and improving the welfare of communities in the areas of health and transport. At macroeconomic level, the benefited cities raise their competitive position by offering an attractive and modern transport system which reduces the economic cost of congestion.

Last year the Bogota Transmilenio Integrated Mass Transport System became the first project of its type in the world to successfully integrate a Clean Development Mechanism component under the Kyoto Protocol, after the United Nations approved for CAF the world’s first and only methodology for implementing the CDM component in mass transport projects. This was achieved after a joint effort by CAF and Grutter Jürg, Beratung/Consulting.

The same procedure is now being followed for the MIO of Cali and, with the agreement signed today, activities are being initiated to receive this recognition for Megabus. By the end of 2007 these systems will be recognized and registered as CDM projects internationally. CAF is evaluating other Bus Rapid Transport projects in Colombia and Latin America.