| (1) | The Contracting authorities must take steps within the prescribed period and in the prescribed manner before expiry of contracts contemplated in subsection (2)(a), (b) or (c) to put arrangements in place for the services to be put out to tender so that the services can continue without interruption. |
| (a) | a negotiated contract concluded under section 41; |
| (b) | a subsidized service contract concluded under this section; or |
or any extension thereof, the relevant services may continue to be subsidized, this must be done in terms of a subsidized service contract concluded in terms of this section.
| (3) | Where a contract referred to in subsection (2)(a), (b) or (c) has expired and no arrangements have been put in place to put the services out to tender, or such arrangements are unsatisfactory or inadequate in the Minister's opinion, the Minister must forthwith enter into negotiations with the contracting authorities, the National Treasury and the Auditor-General with a view to ensuring compliance with this Act and legislation on financial and procurement issues. |
| (4) | Only a contracting authority may enter into a subsidized service contract with an operator, and only if the services to be operated in terms thereof, have, subject to section 80(1)(a) of the Systems Act, been put out to public tendering and awarded by the entering into of a contract in accordance with prescribed procedures in accordance with other applicable national or provincial laws. |
[Section 42(4) substituted by section 23(a) of the National Land Transport Amendment Act, 2023 (Act No. 23 of 2023), Notice No. 4959, GG50800, dated 11 June 2024 - effective 12 September 2025 per Commencement Proclamation 289, GG53335, dated 12 September 2025]
| (5) | The validity period of a subsidized service contract must not exceed seven years. |
| (6) | The Minister may, in consultation with the MECs— |
| (a) | prescribe requirements for tender and contract documents to be used for subsidised service contracts which may be made binding on contracting authorities unless the Minister agrees in writing that an authority may deviate from the requirements in a specific case on written application by that authority; and |
| (b) | provide model tender and contract documents, and publish them in the Gazette, for subsidised service contracts as a minimum requirement for contracting authorities who may not leave out material provisions from those documents, unless this is agreed to in writing by the Minister in a specific case on written application by the relevant contracting authority, but those documents may differ for different authorities or situations; |
[Section 42(6)(a)(b) substituted by section 23(b) of the National Land Transport Amendment Act, 2023 (Act No. 23 of 2023), Notice No. 4959, GG50800, dated 11 June 2024 - effective 12 September 2025 per Commencement Proclamation 289, GG53335, dated 12 September 2025]
| (8) | The model tender and contract documents published in terms of the Transition Act shall cease to apply as from the date of commencement of this Act. |
