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Public Transport tendering and contracting arrangements in countries under regulatory transition: The case of Cyprus

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  • Papaioannou, Panagiotis
  • Georgiadis, Georgios
  • Nikolaidou, Anastasia
  • Politis, Ioannis

Abstract

Competitive Tendering is perhaps the preferred approach for procuring Public Transport (PT) passenger services in the EU, according to its legislation. Cyprus has initiated a few years ago the second PT reform cycle which will be concluded with the awarding of six new concession contracts for passenger services by bus. This paper presents and discusses the two PT reforms in Cyprus. The aim of the second reform is to significantly increase the PT share by improving service availability and quality through the transition from a monopolistic to a more competitive PT market. According to the roadmap prepared by the Cypriot authorities, specific contracting arrangements have been set to attract both local and international PT operators to the competitive tendering process. These arrangements mostly pertain to the eligibility and selection criteria of the tendering process, the opportunity to lease PT buses from local companies and the contract type and duration. The paper sets five main questions addressing critical issues of the reform effort and provides responses through the in-depth analysis of the selected tender and contractual arrangements. Useful findings and conclusions may be drawn, especially regarding the effect of small size market and the lack of necessary PT infrastructure.

Suggested Citation

  • Papaioannou, Panagiotis & Georgiadis, Georgios & Nikolaidou, Anastasia & Politis, Ioannis, 2020. "Public Transport tendering and contracting arrangements in countries under regulatory transition: The case of Cyprus," Research in Transportation Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:retrec:v:83:y:2020:i:c:s0739885920301426
    DOI: 10.1016/j.retrec.2020.100944
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    1. Olivia Psara & Fernando Fonseca & Olympia Nisiforou & Rui Ramos, 2023. "Evaluation of Urban Sustainability Based on Transportation and Green Spaces: The Case of Limassol, Cyprus," Sustainability, MDPI, vol. 15(13), pages 1-18, July.

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    More about this item

    Keywords

    Public transport services; Concession agreements; Tendering and contracting; Regulatory reform; EU Regulation 1370/07; Eligibility requirements; Tender evaluation criteria; Revenue risk; Incentives;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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