Thomas Avanzata Avanzata Consulting 101 rue Dansaert 1000 Bruxelles Tél. 0032 (0) 497 62 15 13

Study on the Implementation of the European Regulation (EC) N° 1370/2007 on public passenger transport services by rail

and by road of 23 October 2007

Thomas AvanzataAvanzata Consulting

101 rue Dansaert 1000 Bruxelles

Tél. 0032 (0) 497 62 15 13Email: [email protected]

Avanzata Consulting Tél: +32(0)497621513 Email: [email protected] 1

mailto:[email protected]

Current Regulation 1191/69

• Current Regulation dates from 1969• Drafted in order to solve an undercompensation

problem• Progressively a European market for local

transports has appeared. Problems have changed : competition and overcompensation

• Application of Regulation 1191/69 has lead to an increasing legal insecurity.


New Regulation 1370/07

•Legislative process has started in 2000. Regulation has been adopted in October 2007

•Regulation will enter into force in December 2009, except for the rules concerning the awarding of contracts which will only come in force ten years later.

•Applicable to land transport by road or by rail : bus, tram, metro, train

•Applicable to national (urban, local, regional, long distance… ) and international transport


Key objective : Main issues

The first key objective of the study is to provide a thematic analysis of the new Regulation main issues :

•Subsidiarity principle in the new Regulation : which decisions do not fall under the scope of the Regulation

•Obligation to have a contract between authority and operator with few exceptions (deregulated markets and services only subject to tariff obligation with compensation but without exclusive rights)


Main issues

•Minimum Content of the contract :- Definition of PSO- Establish in advance the way compensations will

be calculated (especially in the case of directly awarded contracts)

- Establish the nature and extent of the exclusive right(s)

- The contract must be of a limited duration

- Possibilities for subcontracting are limited and must be defined by the contract.


Main issues

•Rules for the award of the contract :- Articulation with public procurement directives- Free choice between competitive tendering and

direct award to an internal operator. - What kind of tendering procedures ?- What conditions for direct award to internal

operator ?- Direct award for rail contracts - Direct award for low value contracts


Main issues

•Transitional period :- Transition period limited to the application of

article 5 concerning the way public service contracts have to be awarded : 10 years (3 December 2019)

- Possible but very limited reciprocity principle

- Specific regime for existing contracts that under certain conditions may remain in force also after the entry into force of the Regulation


Key objective : case studies and best practices

The consultant and the working group (Brussels, Stuttgart, STIF Ile de France, Madrid, Helsinki, Amsterdam and Sheffield…) will provide an analysis of a selected number of local situations related to the main thematic issues. Some Member States have already a large experience in contract related issues, the study will as often as possible highlight best practices in order to avoid major mistakes.


Conclusion

- The new European framework offers a wide range of choices to be made and possibilities for organizational set-ups. In the light of this, it is crucial that EMTA provides platform to discuss and evaluate the pros and cons of the various options.- The study started in May 2008 and should be over in May or June 2009.


Thank you for your attention !


Thomas AvanzataAvanzata Consulting

101 rue Dansaert 1000 Bruxelles

Tél. 0032 (0) 497 62 15 13Email: [email protected]

mailto:[email protected]

Documents

Thomas Avanzata Avanzata Consulting 101 rue Dansaert 1000 Bruxelles Tél. 0032 (0) 497 62 15 13