Urban transport in Arequipa, the second largest city of Peru grew enormously during the last decades. These days the city is congested with taxis and relatively small busses. A weak economy and supposed corruption among the traffic police and other civil servants created a ‘free state’ for informal workers in transport. The ten year contract term between the bus companies and the municipality about the right to use the bus routes is expiring at the end of 2008. With this upcoming possibility, the municipality is planning to restrict and control the urban transport. Smaller and contaminating busses have to make space for bigger busses and bus lanes. Part of the plan is to convert many vehicles from petrol to gas. The municipality also wants to get rid of the informal taxis and busses. Many workers fear the loss of their job and have uncertainty about possible compensations and credit arrangements. The taxi and bus companies are represented by unions who are negotiating with the municipality about the upcoming reforms. The plans of the municipality don’t seem to be achievable on a short term. They would possibly cause manifestations, civil unrest and strikes. Arequipa definitely needs a more structured, safer and cleaner transport. The municipality doesn’t seem capable to provide replaceable work for transporters who are threatened to loose their job
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