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The objectives of the consultancy were to: (i) assess the quality of passenger travel and traffic forecasting methods and systems in Tehran and Mashhad; (ii) assess the operational efficiency and demand responsiveness of bus services in these cities; (iii) formulate recommendations on long term strategies and short/medium term action plans for improving the forecasting and planning capability of urban transport agencies and the quality of bus services in these cities; and (iv) assist the Bank in guiding and supervising the cities’ urban transport agencies and bus companies in the preparation of detailed technical assistance and training programs and identification of equipment needs (not including buses) for improving planning capabilities and bus services in accordance with the action plans.