A Sustainable Asset Valuation of the Mass Rapid Transit System in Bogota, Colombia

Bogota, Colombia’s capital and largest city, is home to a rapidly growing population of over 8 million inhabitants. The city’s public transportation network has struggled to keep pace with this rapid urban population growth in recent decades, leading to Bogota being ranked as one of the most congested cities in the world. Despite numerous attempts by various administrations to implement a metro system over the past 50 years, the primary form of public transportation in Bogota remains the TransMilenio bus rapid transit system.

To tackle these challenges, the city of Bogota recently introduced Metro Line 1 of the Metro de Bogota, an MRT system and the first modern metro system in Colombia. The MRT system will be fully electric and automated and will consist of an elevated line that will connect Bogota’s city centre with the southern and northern districts. The MRT system aims to meet sustainable, low-carbon mobility targets while reducing traffic congestion and increasing access to employment opportunities across Bogota.

This Sustainable Asset Valuation (SAVi) assessment analyzes the methodology on multiple economic, social, and environmental benefits that the MRT system may have for Bogota’s residents. The assessment shows that the project will contribute to the economic, social, and environmental development of the city through increased productivity, generation of (and improved access to) employment opportunities, reduced traffic congestion, and access to quality transit for public transportation users. Two MRT scenarios were modelled, which assume an 8% and a 16% modal shift from private transport to the MRT.

Key findings include:

• The MRT system is a highly profitable project, generating cumulative (2022–2058), discounted (3.5%) net benefits of USD 2,051 million in the MRT 8% scenario and USD 6,177 million in the MRT 16% scenario.
• When accounting for the full range of benefits for the city, the MRT system results in an integrated benefit-cost ratio of 1.5 per USD 1 invested in the MRT 8% scenario and 1.9 per USD 1 invested in the MRT 16% scenario.
• The greatest positive added benefits of the MRT system are increased retail revenues around MRT stations and significant health benefits from increased physical activity and decreased air pollution.