Trust Building in Passenger Transport Concession Contracts And Procurement Procedures: The Case Of Brazilian Urban Bus Transport

Abstract

According to the Federal Constitution the transport of passengers in municipalities is an essential public service and should be rendered directly by the State or through delegated private operators selected by means of previous public tender. Regardless of the existence of these legal requirements, in the great majority of towns and cities, public tender does not occur or is just very slow. This study aims to analyse factors which hinder tender processes in Brazil and in particular, the case of Recife. The research found that there is a relationship of constant competition and a lack of trust between those involved in rendering this public service: public power, private operators and users. The results of this research point to the need to establish an institute to mediate as a modern instrument, consistent and effective in nurturing trust between parties, favouring reciprocal cooperation among those involved in serving the public interest. The conclusions point to the regulatory agency as having the role of mediator. It is hoped that this new mediator can contribute to undertaking public tender processes so that quality public transport services may be offered to the population.