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National Land Transport Act, 2009 (Act No. 5 of 2009)

Chapter 5 : Contracting for Public Transport Services

41. Negotiated contracts

 

(1) Contracting authorities may enter into negotiated contracts with operators in their areas, once only, with a view to—
(a) integrating services forming part of integrated public transport networks in terms of their integrated transport plans;
(b) promoting the economic empowerment of small business or of persons previously disadvantaged by unfair discrimination; or
(c) facilitating the restructuring of a parastatal or municipal transport operator to discourage monopolies.

 

(2) The negotiations envisaged by subsections (1) and (2) must where appropriate include operators in the area subject to interim contracts, subsidized service contracts, commercial service contracts, existing negotiated contracts and operators of unscheduled services and non-contracted services.

 

(3) A negotiated contract contemplated in subsection (1) or (2) shall be for a period of not longer than 12 years.

 

(4) The contracts contemplated in subsection (1) shall not preclude a contracting authority from inviting tenders for services forming part of the relevant network.

 

(5) Contracting authorities must take appropriate steps on a timeous basis before expiry of such negotiated contract to ensure that the services are put out to tender in terms of section 42 in such a way as to ensure unbroken service delivery to passengers.