Guidelines for Participation by Private Operators in The Provision of City Bus Transport Services

This guidelines document for development of model contractual framework outlines the process of preparing a comprehensive bus contract suitable to the context and environment of the concerned authority. The document examines various structures and alternatives for the participation of private bus operators; it also presents different forms and contents of a PPP contract and provides procurement and management guidelines

The purpose of this document is to provide a strategy to develop a contract for bus operations for a city, subject to the city's unique circumstances and requirements. Since each city is unique in its institutional structure, existing infrastructure, stakeholder capacity, and finance availability, a generic contract model would be inadequate for all cities. The document attempts to identify and classify these differences and develop a strategic approach for choosing the type and elements of the contract essential to deliver efficient public transport services. The document proposes four types of contracts, namely, Gross Cost, Gross Cost Hybrid, Net Cost and Net Cost Hybrid, that may be customised for a particular city. The key features of each of these contracts are described in Chapter 4, and the corresponding term sheets are provided in Annexure I.