Adaptation of European experience in compensation mechanisms for public transport operators in urban public transport in Ukraine

Abstract

At present, one of the key directions for improving the efficiency of urban public transport systems is the formalization of contractual relations between public authorities and transport operators. These relations should consider such core aspects as the contract model, compensation calculation mechanisms, monitoring and KPI achievement systems, as well as the transparency of financial flows. European experience demonstrates that precisely these elements – combined with a clear allocation of risks and the application of bonus–penalty mechanisms – are decisive for improving the quality and efficiency of transport services. Particular attention is paid to the development of modern mechanisms for calculating compensation to public transport operators in urban public transport in Ukraine, taking into account European best practices and the requirements of Regulation (EC) No 1370/2007. Based on an analysis of the EU regulatory framework, academic research on the effectiveness of contractual models (gross cost, net cost, performance-based contracting), and the practical outcomes of their implementation in European cities, the key principles for organizing transparent and result-oriented contractual relations in the transport sector are substantiated. The analysis of Ukrainian legislation and existing compensation mechanisms reveals their fragmented nature, the absence of unified approaches across different transport modes, and a low degree of linkage between public funding and performance indicators. The proposed models are aimed at improving the quality of transport services, ensuring transparency of budget financing, and adapting the Ukrainian system to European standards for the provision of public transport services.