Consultancy Services for Rationalization and Preparing a Passenger Service Obligation (PSO) Contract for Passenger Services in Turkey

ECORYS supported Turkish State Railways in the preparation and rationalization of a Passenger Service Obligation (PSO) contract.The objective of this assignment is to establish a PSO contracting process that will allow the government to understand the costs of the services it purchases with its subsidy funds and provide incentives for passenger services to be provided efficiently. Although the conditions for adopting an EU style PSO contract will not be available till the adoption of the new railways law; the rationalization and preparation of a transition contract will aid TCDD and the Government to assure good value for money for rail services in the future. The approach is to start the contracting process under the existing regulations for financing of TCDD; and,  to transform the contract to EU standarts when the restructuring of the rail sector starts. Along with the draft contract, a cost calculation model has been developed; and, a transport plan has been introduced which includes proposed service concepts that will maximize benefits for Turkish population and the necessary investments.