National Land Transport Act, 2009 (Act No. 5 of 2009)RegulationsRegulations on Contracting for Public Transport Services2. Negotiated contracts |
| (1) | Where a contracting authority has concluded— |
| (a) | a subsidised service contract, interim contract, current tendered contract or negotiated contract in terms of the Transition Act, such contract shall remain in force until it expires or is terminated, but the contracting authority will not thereby be precluded from concluding negotiated contracts under section 41 of the Act in the same area or on the same routes; and |
| (b) | a negotiated contract in terms of section 41 of the Act or section 47(3) of the Transition Act, this will not preclude it from— |
| (i) | concluding other such contracts with different operators or on different routes, even if such routes are in the same area; or |
| (ii) | providing in such contract for the services to be provided under the contract to be increased or amended in a phased manner during the period of the contract, provided that the total duration of the contract shall not exceed 12 years. |
| (2) | Where there is a subisidised service contract, interim contract, current tendered contract or negotiated contract as contemplated in the Transition Act, or a contract contemplated in section 46(1) of the Act involving services on BRT routes as part of an IPTN, and such contract has more than three months still to run— |
| (a) | the municipality establishing the IPTN must enter into negotiations with the relevant provincial department and the operator with a view to involving the operator in the operating agreements for the proposed IPTN; and |
| (b) | the funds previously allocated for the routes or areas forming part of the services provided in terms of that contract that will be covered by the BRT services must be allocated to the municipality for funding the network contract, subject to the relevant Division of Revenue Act; and |
| (c) | the province or municipality, as agreed between them and the Department, may conclude a contract in terms of the Act with the existing operator, either by amending the contract or concluding a new contract, or failing agreement with that operator, with another operator or operators, for the remainder of the services, subject to section 11(2) and (3) of the Act; or |
| (d) | the contract may be allowed to run its course; or |
| (e) | the contracting authority may make an offer to the operator in terms of section 46(1)(c) of the Act. |
| (3) | Subregulation (2) shall not prevent the contracting authority from negotiating with the operator as contemplated in that subregulation where such a contract has three months or less still to run, or, alternatively the contracting authority may allow the contract to run its course in terms of section 46(1)(a) of the Act. |
| (4) | Where a municipality is establishing an IPTN contemplated in section 40 or 41 of the Act, it must make reasonable efforts to involve existing scheduled bus and unscheduled minibus taxi operators on the relevant routes in the proposed negotiated contracts, but where the municipality has made an offer in writing, either individually or by notice in the press to such operators and some of the operators have rejected the offer or failed to respond within 21 days, the municipality may conclude— |
| (a) | one or more negotiated contracts with other operators in terms of section 41(1) of the Act; or |
| (b) | subsidised service contracts or commercial service contracts for the services. |
| (5) | Any dispute with regard to the matters contemplated in this regulation must be resolved in terms of the procedures set out in regulations 6 to 9. |
| (6) | The fact that mediation or arbitration is in progress will not prevent or delay a contracting authority from continuing with its activities to rationalize services or to establish IPTNs and conclude contracts with other operators for this purpose, in the interests of improving public transport in the relevant area. |