The Scottish Government

« Previous | Contents | Next »

Listen

Annex C: Bus Route Development Grant

Project Proposals involving Vehicle Purchase

1. If a project involves the purchase of vehicles, or a contribution towards the costs of purchase, which are made over to operators for use on BRDG assisted routes the public transport authority might wish to ensure:

• it has appropriate statutory powers to enter into the arrangement;
• vehicles are purchased at a price not exceeding the market price after an open procurement exercise;
• the value to the operator of the benefit of the vehicle(s) is taken into account in the costs of the project and the benefits provided by the operator to ensure the operator is not being over-compensated;
• such benefits are also taken into account in the contract price or in the benefits otherwise provided ( e.g. in quality of service, more accessible vehicles, promotion and marketing of the service) where the service is supported by the authority; and
• there is a written agreement with the operator setting out the conditions which will apply to the use of the vehicle(s) and the arrangements for its subsequent use and/or disposal. If the operator retains the vehicle without paying a market price or contributing in kind this could represent an anti-competitive advantage and be in breach of State Aid rules.

Appraisal of Proposals

2. Public transport authorities might wish to appraise their project applications in accordance with the principles set out in the Scottish Transport Appraisal Guidance ( STAG), Single Outcome Agreements and local and regional transport strategies.

3. It is suggested that the level of detail in the appraisal should be commensurate with the scale of the proposal and the level of funding involved. For small schemes, the appraisal may involve less detail and might be set out in accordance with the following appendix. However, for larger and expensive schemes that are likely to have a more significant impact, a more thorough STAG analysis may be appropriate to demonstrate that the BRDG option is the most effective means of achieving the objectives.

4. The appraisal might:

• identify the problems, opportunities and issues to be addressed;
• set out the objectives of the proposal - e.g. what it is seeking to achieve, e.g. greater access to public transport by improved level of service, reduction in congestion, fare reductions, modal shift from car to bus etc.;
• explain why the BRDG option appears the most effective solution for achieving the objectives - rather than, say, other demand management solutions or other modes;
• set out how the proposal will make the service(s) more accessible to older and disabled people;
• provide sufficient evidence to support the claim that the proposal will achieve the stated objective;
• provide an assessment of potential impacts on other modes (including modal shift), other public transport authorities and operators (including details of abstraction from other routes);
• any abstraction of passengers might be considered as part of the bid appraisal, and details of other services in terms of the route, frequency, stopping places, capacity, quality of vehicles ( e.g. low floor accessible, age, emissions etc) and fares might also be taken into account; and
• set out what monitoring and evaluation arrangements will be in place to ensure that the objectives are met.

Project Presentation

5. To assist in their assessment of any future bids, public transport authorities might consider how they wish them to be presented. Some options might include:

• an executive summary of what is being proposed. It is recommended that this summary makes clear all elements of the project including the various elements of capital and current costs, assumptions on the depreciation of vehicle costs, passenger and revenue growth assumptions and the longer-term funding of the services, including the assessment on which it is considered that numbers will increase based on underlying assumptions and evidence of the route's capacity to become commercially viable;

• the identification, assessment, development and delivery of the proposal which should become self supporting after the period of grant funding has ended. Proposals might include a letter from the bus operator(s) confirming their participation, agreeing to provide the service if the funding proposal is successful, and to meeting any other obligations described in the proposal;

• a clear understanding between the partners on the obligations involved (including any obligations after the period of funding). The public transport authority and operator(s) may wish to consider if a formal written or contractual agreement between them would be appropriate if the proposal is funded;

• a declining requirement for BRDG over the life of the award as progress towards viability is achieved;

• a commitment by the public transport authority and bus operator to continue the enhanced service for at least one year after the period of BRDG funding; and

• commitments by the public transport authority and bus operator to market and promote the service, provide enhanced customer care, upgrade infrastructure, provide bus priority measures etc.

« Previous | Contents | Next »