the Competition Council recommends regionalizing the National Urban Mobility Strategy

The Competition Council recommended, in its opinion on the competitive functioning of the delegated management of urban and interurban public transport by bus in Morocco, to regionalize the National Strategy for Urban Mobility.

“To better achieve advanced regionalization in the urban and interurban public transport sector, it is the opinion of the Competition Council to regionalize the National Strategy for Urban Mobility and to grant more powers to the delegating authorities in the management delegate for urban and interurban public transport in terms of planning, control and financing”indicates the Council in this opinion n°A/2/22.

And to maintain that the strengthening of the transfer of skills from the local development company (SDL) and delegates to local authorities and their offshoots (Intermunicipal Cooperation Establishments and groups of local authorities) can only strengthen regional governance of delegated management urban and interurban public transport.

In addition, the Council has made suggestions to ensure free and fair competition in the market for the delegated management of urban and interurban public bus transport.

It is mainly a question of establishing an updated evaluation grid for offers, based on objective criteria focused more on the business plan of the tenderers instead of the evaluation grid marked essentially on the prices which would no longer be the only elements of competition, as well as to introduce and attribute a significant scoring to the accumulated expertise and experience of managers as criteria for selecting candidates for calls for competition in the markets for the delegated management of urban and interurban public transport by bus and this, to promote national entrepreneurship in the sector.

The Council also recommends specifying before any call for competition the degree of sharing of industrial and commercial risks, and of the cost of the overall investment between the delegator and the delegatee, in addition to reviewing a clear and known plan at the advance by all the tenderers of the subsidies which will be granted during the exploitation of the contracts and this, in order to be able to create a competitive dynamic between the operators in order to limit the share of the subsidy.

It is also a question of preserving the mechanisms for maintaining the financial balance of the delegated management contract, taking into account the imperatives of public service and the fair remuneration of the delegate and of reviewing and specifying the conditions of reviewer of the delegated management contracts five-year plan by introducing the obligation of an evaluation of the delegated management by a public consultation of the users.

In addition, the Competition Council recommends ensuring that tariffs remain accessible to all citizens, by controlling investment and operating costs, as well as controlling the margins generated by the management delegated management, as well as providing in delegated management contracts for urban and interurban bus transport a system for calculating subsidies based on the principle “malus-bonus” linked to predefined public service performance and quality objectives, while ensuring that this method of calculation is communicated to operators in advance.

According to the Council, the delegating authorities, due to the high level of concentration of this market and the difficulty for new entrants to gain access to it and gain a place in it, must review the conditions of access to this market, in the sense of a relaxation of the conditions which will allow a more animated competition of the market and the access of a greater number of competitors guaranteeing a service of urban transport of better quality and at an accessible price, by adopting a calendar staggered calls for competition, to strengthen the competitive dynamic on these markets and increase competitive pressure on prices.

This opinion of the Competition Council concerns the analysis of the competitive functioning of the market for the delegated management of urban and interurban public transport by bus, based on a participatory approach through the hearing of all the stakeholders in the sector.

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