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Methods for Allocating Contracts for the Provision of Regional and Local Transportation Services

October 2013

OECD Policy Roundtable

"Many jurisdictions have introduced competition in the provision local bus services, either by allowing competition in the market between providers or by tendering the right to be the sole provider of these services on a route, or a number of routes. In some jurisdictions, however, these services are still provided by local authorities. The discussion reviewed recent country experiences and compared merits and limitations of different approaches, with a special focus on how to best structure and run tenders for these services so as to minimise costs, guarantee a good level of service and ensure that economies of scale are exploited.

The discussion also examined a recent reform proposal in the state of Victoria (Australia) aimed at easing restrictions on the number of taxi licences, while minimising the impact on the value of existing licences, and at increasing the quality of the service."

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