Milan metropolitan PTA launches 1.25bn 7-year bus concession tender under gross cost model - Sustainable Bus

"The public transport authority covering the wider Milan metropolitan area (including nearby cities as Lodi, Pavia, Monza) has launched a €1.25 billion tender for suburban, interurban and urban bus services. The tender has been issued by the authority 'Agenzia per il Trasporto Pubblico Locale del bacino della Città Metropolitana di Milano, Monza e Brianza, Lodi e Pavia', therefore the public transport authority responsible for planning and contracting local transport services across the wider Milan metropolitan basin in northern Italy."

"The tender, as mentioned on Italian trade magazine and our sister media Autobusweb, concerns interurban and suburban bus services as well as the urban network of Lodi, a medium-sized city located south-east of Milan in the Lombardy region. The authority's jurisdiction also includes the province of Pavia, south of Milan, alongside the metropolitan area of Milan and the province of Monza and Brianza. It is not involving urban services in Milan."

"The overall estimated value of the concession amounts to approximately €1.25 billion excluding VAT. Each contract will have a duration of seven years. The tender is divided into four territorial and operational lots designed to function independently. Lot 1 covers the south-western area of the Milan basin, with a value of €179.8 million. Lot 2 concerns the north-western Milan area and western Brianza, with a value of €367.9 million. Lot 3 includes the north-eastern Milan area and central Brianza districts, amounting to €334.5 million. Lot 4 covers the south-eastern Milan corridor and the province of Lodi, with a value of €366 million."

"The contracts will be awarded under a "gross cost incentivante" model, replacing the current net cost structure used in the area. Under the new framework, fare revenues will remain under the control of the public transport authority, while operators will receive remuneration through a compensation m"

A public transport authority for the wider Milan metropolitan area has launched a €1.25 billion tender for suburban, interurban, and urban bus services. The scope covers services in Lodi and the province of Pavia, and includes the metropolitan area of Milan and the province of Monza and Brianza. Urban services in Milan are excluded. The concession value is about €1.25 billion excluding VAT, and each contract lasts seven years. The tender is divided into four independent territorial and operational lots: €179.8 million for the south-western area, €367.9 million for the north-western area and western Brianza, €334.5 million for the north-eastern area and central Brianza, and €366 million for the south-eastern corridor and Lodi province. Awards use a gross-cost incentivante model where fare revenues remain with the authority and operators receive compensation.

Read at Sustainable Bus