Shortcomings in central government investments in interregional public transport

To improve opportunities for interregional public transport in areas with poor accessibility, the Swedish Transport Administration can provide support for, or procure, public transport services. The annual appropriation for these ‘public transport service contracts’ is roughly SEK 1 billion.

The Swedish National Audit Office’s audit shows that, while public transport service contracts have had a positive impact on accessibility, efficiency has declined in recent years. Fewer municipalities have obtained improved interregional public transport, while the central government’s average cost per passenger has increased for the majority of the contracts.

Much of the deterioration is linked to changes in the overall supply of public transport, for which the central government is not responsible. However, the Swedish National Audit Office considers that it is also partly due to shortcomings in the Swedish Transport Administration’s work.

For example, the agency largely bases new contracts on existing routes, and decisions are primarily guided by the estimated increase in accessibility. However, no socioeconomic assessments are performed, and the Swedish Transport Administration does not apply clear prioritisation criteria.

Moreover, choice of mode of transport and type of contract is not always justified, and comparisons with other options that might be more effective are often absent.

“The Swedish Transport Administration gives only limited consideration to how many more people could actually travel as a result of the public transport service contracts, or to the cost per passenger. The supporting documentation is therefore inadequate,” says Sherzod Yarmukhamedov, Project Leader for the audit.

Furthermore, the audit also shows that the Swedish Transport Administration has seldom performed evaluations of the contracts – neither general evaluations nor those that specifically highlight their contribution to transport policy objectives.

Neither has the Swedish Transport Administration followed up and evaluated the operations sufficiently to enable assessing how well contracted suppliers actually deliver on their contracts, and whether accessibility has increased as expected.

“Public transport service contracts need to be based on a comprehensive assessment of which public transport solutions improve accessibility and generate the greatest public benefit. However, the Swedish Transport Administration does not perform sufficiently detailed analyses or systematic monitoring to enable effective prioritisation among different routes,” says Auditor General Christina Gellerbrant Hagberg.

The Swedish National Audit Office also notes that the Government’s steering in this area has been inadequate. For example, the Government has not conducted a thorough analysis of whether resources suffice, are used effectively or whether its steering leads to effective management.

“The weak steering makes it difficult for the Government to judge whether central government funds are generating the greatest possible benefit. This increases the risk of inefficient use of resources and of entering into public transport service contracts without an adequate basis in actual needs and results,” says Ms Gellerbrant Hagberg.