Quality Contracts in Hordaland County - Discussion of alternative contract forms

This report evaluates alternative contracts for the public transport companies in Hordaland County. One of the main conclusions is a recommendation of output-based contracts with more focus on the social benefits of the subsidies transferred to the companies. The development of output-based contracts depend on a more clarified division of responsibility between the authorities and the companies, were the County take more responsibility on strategic level and the companies at the planning and operational level. The analysis in this report estimates that in the long run the effect of an output-based contract will give a social benefit of approximately 100 mill NOK and 13 per cent passenger increase, but also increased subsidies mainly for the city region of Bergen.