World Bank mission looks at reform options for SPTC |13 August 2019

The Ministry of Habitat, Lands, Infrastructure and Land Transport and the Ministry of Finance, Trade, Investment and Economic Planning have presented to cabinet the findings of a World Bank team which carried out an inception mission for the reform options for the Seychelles Public Transport Corporation (SPTC).

The mission took place between April 29 - May 3 and from May 13 - 17, 2019.

This memorandum served to bring to the cabinet’s attention and to seek approval for the proposal for the different elements needed as part of the reform process of the SPTC.

The mission highlighted that despite a steady progress since 2014 on issues such as improving operational efficiency, key challenges still persist. SPTC continues to post financial/operational losses and has thus had to rely on/request revenue grants from government. A situation which according to some stakeholders as well as the mission’s observation, is attributable to:

a) A seeming mismatch between the government approved/set fares (R7) and the SPTC’s cost of operations/service provision,

b) Lack of data/analysis of SPTC’s true cost of service or economic tariff,

c) A lack of broad transport sector policy/strategy and

d) Absence of a multi-year framework or performance agreement between government and SPTC which sets out performance requirement/service expectations, an agreement on tariffs/fares as well as financing arrangement.

The World Bank Mission and the two ministries have agreed on a suggested scope and outline as follows:

1) Development of government policy and a 5-year framework for provision of public transport in Seychelles

2) Review of the route network currently operated by SPTC, including capacity, service levels and product differentiation

3) Strengthen the structure of SPTC, including its capacity and processes, to deliver the revised network within the agreed framework and

4) Assess the feasibility of options for participation of private sector operators in public transport services in Seychelles, including identification of potential entry points and support measures for the transition.

The World Bank consultants are in the country and have started their work for the project.

It is anticipated that they will submit their report in December this year based on their programme of activities to be undertaken.