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 Avanzata Avanzata Consulting 101 rue Dansaert 1000 Bruxelles Tél (0) Avanzata Consulting Tél: +32(0)

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. Avanzata Consulting Tél: +32(0)

New Regulation 1370/07 Legislative process has started in 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 Avanzata Consulting Tél: +32(0)

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) Avanzata Consulting Tél: +32(0)

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. Avanzata Consulting Tél: +32(0)

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 Avanzata Consulting Tél: +32(0)

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 Avanzata Consulting Tél: +32(0)

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. Avanzata Consulting Tél: +32(0)

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 Avanzata Consulting Tél: +32(0)

Thank you for your attention ! Avanzata Consulting Tél: +32(0) Thomas Avanzata Avanzata Consulting 101 rue Dansaert 1000 Bruxelles Tél (0)