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

Regulations

Regulations on Contracting for Public Transport Services

3. Operating licences and permits in relation to contracts

 

(1) An application for an operating licence based on a contract contemplated in section 56 of the Act—
(a) must be lodged with the relevant board as required by the Transition Act for an application contemplated in section 40 of the Transition Act;
(b) shall for procedural purposes be deemed to be a contract contemplated in section 40 of the Transition Act, and that section applies with the necessary changes; and
(c) need not be published in terms of section 37 of the Transition Act where the relevant service is provided for in the ITP of the contracting authority.

 

(2) Where a contracting authority has already lodged an application for operating licences for such a contracted service, or for an uncontracted service in terms of the Transition Act, and such service will be provided in terms of a contract as defined in the Act—
(a) the application shall be regarded as an application in terms of subregulation (1), the provisions of which shall apply; and
(b) it shall not be necessary for the contracting authority to re-submit an additional application in terms of the Act.

 

(3) Operators who enter into contracts, or who become shareholders or are subsidiaries of companies formed in order to enter into contracts, with contracting authorities in terms of section 41 of the Act must surrender to the appropriate operating licensing board, or once established, to the relevant regulatory entity, for amendment or cancellation, as the case may be, all permits and operating licences held by them that will be replaced by services to be rendered in terms of the new contract.

 

(4) Where a contracting authority has concluded a contract with an operator as part of an IPTN, and that contract is terminated before its expiry date or that operator is unable or unwilling to operate the contracted services during the period of the contract, the contracting authority shall be deemed to be the holder of the relevant operating licences and may operate the services itself for the period that the first-mentioned operator fails or refuses to operate, or while arrangements are being made to procure another operator, but not for more than 180 days or such longer period as approved by the Minister: provided that this period shall be extended for the duration of any litigation relating to the termination of the contract or the procurement of a new operator.

 

(5) In a situation contemplated in subregulation (4), the contracting authority may, instead of operating the service itself, contract the services to another operator to operate the services for the interim period in which case the new contractor must be issued forthwith with operating licences for the vehicles being used for those services for the period deemed fit by the regulatory entity, but not for more than 180 days or such longer period as approved by the Minister. provided that this period shall be extended for the duration of any litigation relating to the termination of the contract or the procurement of a new operator.