A CTF allocation of $200 million to upgrade and modernize urban transportation in select Mexican cities to alleviate air and noise pollution, traffic congestion, and greenhouse gas emissions.


Mexico’s population is now 75 percent city-dwelling and continuing to urbanize. However, the urban transport infrastructure in the country is functionally inadequate, emissions intensive, and noisy. Motorization in Mexican cities is increasing by about 10 percent annually, and today private cars often account for 80 percent of motor vehicles but only 20 percent of trips. Many aspects of Mexican urbanization contribute to these challenges including an outdated an inefficient owner-operated small bus industry, inefficient use of road space, inefficient vehicles with the associated pollution and public health effects, and limited institutional capacity in Mexican cities.

The Urban Transport Transformation Project (UTTP) aims to prioritize improvements in Mexican mass transit by investing bus rapid transit (BRT) and non-motorized transport (NMT).

Objectives and Outputs:

The Project Development Objective is to contribute to the transformation of urban transport in Mexican cities toward a lower carbon growth path. This will be achieved by improving the quality of service provided by the urban transport systems in a cost efficient manner, and by deploying equipment, infrastructure, and operational strategies that reduce CO2 emissions.

UTTP emphasizes public transit investments as well as complementary measures, including investments in non-motorized transport. It has been estimated, that standalone BRT projects can reduce CO2 emissions at $66 per ton, while BRT coupled with NMT improvements can achieve reductions at just $30 per ton.

The $2.69 billion Project is expected to avoid approximately 1.96 million tons of C02 emissions per year by 2017. It is estimated that a national integrated mass transit program over time could achieve a share of 30 percent of daily trips in major urban areas, with a ridership eventually exceeding 20 million passengers per day. This scaling of mass transit ridership could lead to a reduction of 20 percent in the sector’s carbon footprint.

The Mexico UTTP will provide an example for other cities in the region of how to implement sustainable transport policies while tackling environmental challenges. It is anticipated that UTTP will provide a model for other cities to create or update Integrated Transport Plans that include climate change mitigation considerations, increase hybrid bus deployment, save travelers time on the road, and increase the number of people who routinely use public transportation.

The UTTP brings together the local urban transport agenda, the national poverty reduction agenda, and the global climate agenda, while responding to the Government of Mexico’s voluntary pledge to adopt the UNFCCC principle of “common but differentiated responsibilities’’ to reduce its GHG emissions.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IBRD Project Portal

Project Details
Project Document | Proposed Decision
USD 200.0 million
Approved on October 8, 2009 (Approved Decision)
Notice of modification to the project