New contractual arrangements for the purchase of public transport in Telemark

TOI has developed new contracts for the purchase of public transport in Telemark county. These contracts are so called performance based subsidy contracts, where the authority pays subsidies according to the number of passengers and the level of the service offered. Based on a simulation model, optimal incentives are calculated. These incentives will create a more efficient subsidy arrangement. Ta achieve increased efficiency, however, the operator must be given freedom to adapt to the incentives. The report recommends a framework for such a subsidy regime. In Grenland, we recommend that the incentive based subsidy arrangement is tendered. The report illustrate how this can be done and creates a fremework for such tendering.