This Case is about FINANCIAL ANALYSIS, GOVERNMENT, INNOVATION, PROJECT MANAGEMENT
PUBLICATION DATE: May 10, 2011 PRODUCT #: HKS681-HCB-ENG
In the month of August 2007, the mayor of Bogota, Luis Eduardo Garzon had to select whether to carry on with schedule to construct a Bus Rapid Transit (BRT) line in Avenida Septima, among the main transportation corridors in the Colombian capital. TransMilenio’s small building price, high ability and superior quality of service had brought the interest of urban transport coordinators around the system as well as the world soon became one of the very acclaimed and copied transport initiations of its own time.
TransMilenio The Battle Over Avenida Septima Case SolutionAs the system expanded however, the operation of TransMilenio had deteriorated over time. And the most recent planned inclusion on Avenida Septima introduced specific technical and political challenges. Elections were just a month or two away and by law Garzon couldn’t run for reelection that is immediate, but the nominee from his party was campaigning on a program of creating a metro rather than enlarging the BRT system. Should Mayor Garzon attempt to lock in the city by giving contracts to build Avenida Septima or leave the choice because of his successor into enlarging the BRT?
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