Resolution of the Cabinet of Ministers
Tashkent 17.08.98 N350
On procedures for open tenders for urban bus routes
With the purpose of service quality improvement, creating an environment of healthy competition in the market of transport services, regulation of passenger transport, developing private sector and other operators regardless of property form, the Cabinet of Ministers enacts:
1.Approve the proposal of the regional khokimiyats and “Uzavtotrans” corporation on bus routes franchising in the cities of the republic in accordance with the Attachment No 1 “On procedures for open tenders for urban bus routes”.
- Model Regulations on City Commission in accordance with the Attachment No 2;
Program on measures on procedures for open tenders for urban bus routes in accordance with the Attachment No 3;
Regulations on procedures for open tenders for urban bus routes in accordance with the Attachment No 4.
- Regional (city) khokimiyats jointly with “Uzavtotrans” corporation are to:
set up Commissions on procedures in accordance with Attachment No 1 and approve their regulations;
receive reports from the management of the City Commissions every quarter and provide required assistance;
revise tariffs level for urban bus routes in time.
- “Uzavtotrans” corporation jointly with “Tashgorpasstrans” association, Ministry of Finance, Ministry of Justice of the Republic of Uzbekistan on analysis on procedures for open tenders for urban bus routes in the cities of the republic are to submit proposals on analogous tenders procedures in Tashkent, for commuter and other types of passenger routes to the Cabinet of Ministers by January 20, 1999.
- Mass media is to reflect tender procedures for urban bus routes.
- Mr. Akhmetov L.A, Deputy Prime – Minister is responsible to implement this Resolution.
Chairman of the Cabinet of MinistersI.Karimov
Annex No 1
Cities of the republic where it’s planned to franchise bus routes
1. Anjizhan regionAnjizhan city
2. Jizhak regionJizhak city
3. Kashkadariya regionKarshi city
4. Navoi regionNavoi city
5. Surkhandariya regionTermez city
6. Syrdariya regionGulistan city
7. Tashkent region Chirchik city, Angren city
8. Fergana regionFergana city, Kokand city
9. Khorezm regionUrgench city
Annex No 2
Model Regulations on City Commissions
- City Commission is set up in order to develop and improve the urban passenger transport, to expand services, develop and implement the measures on creating of healthy competition in the market of transport services and to control measures implementation.
- In its activity the Commission is guided by the Law of the Republic of Uzbekistan “On urban passenger transport”, other normative acts of the Republic of Uzbekistan, decrees and resolutions, orders of the President of the Republic of Uzbekistan, resolution of the government of the Republic of Uzbekistan and the current Regulations.
- The main tasks of the Commission:
work coordination on provision of regular service of urban passenger transport;
creation of equal conditions in the market of urban transport services for operators with different form of property, competition development;
tender procedures for urban bus routes franchising;
control on measures implementation on urban passenger transport development, services expansion;
passenger rights provision.
- In order to implement these tasks the Commission has the right:
To get from state institutions and other individuals the information, necessary for implementation these tasks;
To franchise urban passenger routes;
To implement measures (by traffic police, Tax committee, State committee for State Property, Committee on demonopolisation, etc) on traffic safety control, meeting of approved schedules, tariffs and provision for concessional travel for 7 categories by operators;
To make proposals to tax committee to impose penalty to operators, illegally working on franchised routes;
To make proposals to khokimiyats on change of current tariffs for urban passenger transport.
- The commission is to:
To summarize systematically the results (not less than one time per month) of work on franchised routes;
To study the public opinion on service quality, culture and frequency;
To inform the population and Council of Ministers of the Republic of Karakalpakstan, regional (city) khokimiyats on contract execution, concluded with operators, winners of the tender;
- Commission consists of the Chairman, who manages the activity, his deputies and other members, representatives of interested parties and institutions on the places including public institutions.
The Chairman of the Commission is the Deputy Chairman of the Council of Ministers of the Republic of Karakalpakstan, deputy regional (city) khokim on transport and communication.
The members of the Commission are approved by the Resolution of the Council of the Ministers of the Republic of Karakalpakstan, regional (city) khokimiyat.
The Commission carries out its activity on voluntary basis.
- The Commission hods the meetings when it is required but not less than one time per quarter. The meeting of the Commission is legal with participation not less than 75% of the Commission members.
The decisions are taken by majority of votes and registered by minutes. On equal votes the Chairman’s vote is decision-making (in his absence – deputy’s chairman).
The Obltrans is responsible for logistics on Commission’s activity for open tenders for urban bus routes.
Annex 3
Program on measures for open tenders for urban bus routes
No / Measures / Date / Executors1 / Setting up of City Commissions in Anjizhan, Dzhizak, Gulistan, Navoi, Urgench, Termez, Karshi, Fergana, Kokand, Chirchik, Angren. / August 1998 / Regional (City) khokimiyats jointly with Obltrans
2 / To hold seminars- meetings in Anjizhan, Dzhizak, Gulistan, Navoi, Urgench, Termez, Karshi, Fergana, Kokand, Chirchik, Angren with operators of different form of property, including individual operators. / 3-rd quarter 1998 / City Commissions jointly with Uzavtotrans and Obltrans, Police traffic, Tax Committee, State Committee for State Property and other related institutions.
3 / Practical assistance to private operators in setting up of associations, unions and other forms of organisations. / regularly / City Commissions jointly with Uzavtotrans
4 / Routes selection for franchising in Anjizhan, Dzhizak, Gulistan, Navoi, Urgench, Termez, Karshi, Fergana, Kokand, Chirchik, Angren, their standardisation, study of travel demand. / August-September 1998 / City Commissions jointly with Uzavtotrans
5 / Procedures and conducting of open tenders for urban bus routes in Anjizhan, Dzhizak, Gulistan, Navoi, Urgench, Termez, Karshi, Fergana, Kokand, Chirchik, Angren. / October-November 1998 / City Commissions
6 / Reflecting in mass media of information on procedures for open tenders for urban bus routes / regularly / City Commissions
7 / Meetings with population, collection of opinions and proposals, informing of population on developing and implementing measures on tenders. / Systematically / City Commissions
8 / Meetings of the Commissions on consideration of tender results in Anjizhan, Dzhizak, Gulistan, Navoi, Urgench, Termez, Karshi, Fergana, Kokand, Chirchik, Angren, to summarise results.
9 / To summarise results of tenders and to develop the legal basis for tender procedures in Tashkent and other cities of the Republic of Uzbekistan. / December 1998 / Uzavtotrans, Tashgorpasstrans, Ministry of Finance, Ministry of Justice
10 / Development of proposals on normative-legal basis for tender procedures beginning from 1999, for commuter and other passenger routes
Annex No. 4 to the Resolution No. 350 of 17 August 1998
R E G U L A T I O N S
on Procedures for Open Tenders for Urban Bus Routes
I. GENERAL PRINCIPLES
1. The objective of open tendering is to create healthy competition in the provision of urban bus services, identifying the most favourable bids, reflecting high quality of service to passengers, regulating the market for bus services, protecting Clients' rights and interests and improving the quality of service.
2. Any legal or physical person, irrespective of form of organisation, registered in the city (region), having a licence for urban transport can participate in an open tender.
3. Both individual routes and packages of routes can be tendered.
4 The City Commissions, who define the terms and procedures for the open tendering process, are responsible for conducting the tenders.
5. The recommended duration of a tender exercise, from the day of its announcement until the signing of a contract with the winner, shall not exceed 60 days.
6. The contract with the winner(s) of open tenders for the provision of services is to be made with the agency for Regulation of Urban Passenger Transport (city (regional) Municipality) on the basis of the decision of the City Commission.
7. A tender is held if there are at least 2 bidders. If only one operator bids for a route or package of routes the Committee can award the right to operate the route without a tender.
8 If necessary, the City Commission can amend the tender procedure in the light of practical experience.
II. THE MAIN PRINCIPLES AND STEPS IN THE TENDER PROCEDURE
9. The main principles of tendering:
- fair and objective allocation of routes among operators with different forms of organisation;
- the selection process must be in the presence of bidders, the mass media and observers, to exclude the possibility of subjective influences in selection;
- the bidder offering the most favourable conditions will be awarded the franchise;
- operators must compete on the basis of common requirements, specified in the tender documents.
10. Main elements of a tender:
- creation of competition for the provision of passenger transport services;
- identifying the most favourable bids, reflecting high quality transport and passengers service. These are: service regularity, compliance with standards defining service frequency, passenger comfort, quality of service, condition, appearance and equipment of buses, traffic safety.
III. PROCEDURE FOR CONDUCTING OPEN TENDERS
11. The Committee prepares the list of routes (or packages of routes) to be offered and publishes the tender documents announcing the main terms and tendering programme in the mass media not less than 30 days before the tender. A sample of a typical announcement is in Attachment 1.
12. Those who want to participate in the open tender must submit a written application to the City Commission to receive a set of tender documents. The deadline for applications to receive the tender documents will be not less than 15 days from the day the tender was announced. The City Commission will record all applications in a special register.
13. The City Commission must receive all submitted applications, without exception, from participants. Only applicants who have licences to operate urban passenger transport are eligible to bid.
Applications to participate in an open tender received after the time limit will not be considered.
14. A bidder must pay for the package of tender documents based on their actual production cost. Payments are to be deposited in a special account of the Municipality to be used for tender procedures only. Only the head of the City Commission, with the agreement of the members, has the right to use this money.
15. The package of tender documents shall include:
- regulations for procedures for awarding bus contracts by open tender;
- a form for submitting information about the bidder (Attachment 2);
- instructions for bidders (Attachment 3);
- requirements for services on the tendered routes (Attachment 4);
- a form for submitting details of the bid (Attachment 5);
- a typical service contract for a route (or package of routes); (Attachment 6);
- a set of envelopes (1 big and 2 small) for submitting the bid and information on the bidder to the City Commission.
The words ”Tender Bid”, and “Details of the Bidder ” are marked on the small envelopes.
The name of the route (or a package of routes) is marked on the big envelope. The tender documents prepared for the bidder must be certified by the chairman of the City Commission. Receipt by the bidder is registered in a special book.
16. The period for preparation and submission of bids must be not less than 15 days after receipt by bidders of the package of tender documents. The City Commission must advise the last date for submission of bids in the tender announcement.
17. Bidders may not make any amendments after submitting tenders.
18. Bids are legally valid for 60 days after the date of their submission.
19. The small envelopes containing the bids and information on the bidder are put into the big envelope. If more than one package of routes is offered, a separate set of envelopes must be used for each package. The envelopes must not have any marks or distinctive signs in order to make it impossible to identify any bidder. All envelopes submitted are to be thoroughly sealed.
20. Evaluation of tenders from bidders is to be carried out by the City Commission.
21. The importance of routes and their profitability must be taken into consideration when packages of routes are formed. Profitable and unprofitable routes necessary for social reasons can be included in a package.
22. If there are no bids for a route (or package of routes) which has been offered by tender, it is necessary to change the main requirements or to form another package of routes.
IV. THE CONTENT OF BIDS
23. Bids must include the following data and information for evaluation by the Tender Committee:
- the proposed fare level per trip on the tendered routes, taking into account full cost recovery;
- type (class) and age of vehicle;
- the capacity of the vehicles offered;
- the proposed frequency on the route.
The bidder must submit complete and full information on all aspects of the bid.
V. EVALUATION OF BIDS AND SELECTION OF THE WINNER
24. The procedure for considering and evaluating bids is in two stages.
25. In the first stage every member of the Tender Committee individually considers and evaluates the following aspects of the bids:
- the proposed level of fares per trip proposed by the bidder on the tendered routes, evaluated on a 5-mark scale,
- the type (class) and age of the vehicle, scored according to Attachment 5a;
- the capacity of the vehicles offered, scored according to Attachment 5b;
- the proposed frequency of service, scored according to Attachment 5c.
The City Commission has the right to evaluate other aspects of the bids, taking into consideration particular requirements of the route.
26. On the basis of certified forms (Attachment 7) completed by each member, the City Commission consolidates the results and calculates the total score of each bidder. The results are entered in the form at Attachment 8.
27. The City Commission has the right to decide the order of importance of criteria but, first, low level of fare is the most important criterion. For each point of decreasing fare level offered by the bidder, an increase in score, on a scale to be defined at a preliminary meeting of the Committee will be used.
The City Commission will automatically reject any bid that offers a fare higher than the maximum, or a frequency lower than the minimum stipulated by the City Commission,
28. If all applicants have equal scores on the criteria, the winner will be chosen by a secret vote of the members of the City Commission.
29. The envelope containing “Information about the Bidder”- relating to the winner of the tender is to be opened only after the members of the City Commission have defined the winner.
30. The order of the tendering procedure is as follows:
1) The bid evaluation forms are given to all members of the City Commission, whereupon they must mark the number of the package, the number of the bidder and his or her own name (Attachment 7).
The chairman of the City Commission retains the form with the final scores. (Attachment 8).
2) The chairman of the City Commission marks the first serial number boldly in the upper right corner of the big envelope, opens it and marks the small envelopes with the same number. The envelope with the information on the bidder is put back into the big envelope.
3) Next, the chairman opens the envelope containing the bid, marks the first serial number on each copy and distributes them to the City Commission.
4) The members of the City Commission study the bids and allocate scores on each aspect of the bid. The members' evaluations are handed to the secretary of the committee who must put them into the big envelope with the first serial number. The same procedure is followed with all the remaining envelopes of bidders for that route.
5) On the basis of scores awarded the chairman of the City Commission announces the number of the winning bid for that package of routes.
6) The chairman of the City Commission removes the small envelope with information on the bidder, with the serial number of the winning bid, from the big envelope, opens it and reads to the members of the committee the information on the bidder who has the right to make a franchise contract.
31. The results of the evaluation of bids by the Tender Committee is entered in an official record, which is signed by the chairman and members of the committee. The winner of the tender is given a certificate, confirming the right to operate on the route. The certificate is signed by the chairman of the City Commission and is certified by the seal of the Municipality.
32. On the basis of the record of the Tender Committee, the City Commission submits the contract for operation of the route (or package of the routes) to the agency for Regulation of Urban Transport of the Hakimiyat for signing with the winning bidder. The contract must be signed within 30 days after the winner was announced. Meanwhile, in the first 10-15 days after the tender and before the contract signing, the committee has the right to verify the reliability of the winning bid. If the statements in the winning bid cannot be substantiated, the bidder with the next highest score is considered to be the winner. The contract with the winning bidder for providing transport services will have a term of not less than 6 months. If the operator meets all the conditions of the contract, the contract term can be extended.