The implementation of the "Rules for calculating and paying subsidies for road transport services based on distance, provided by carriers engaged in regular passenger transportation" has officially commenced, following the Cabinet of Ministers' Decision No. 250 dated July 31, 2026.
This information was provided to the Operative Information Center-OMM by the Azerbaijan Land Transport Agency (AYNA) under the Ministry of Digital Development and Transport. Initially, regular bus routes 130, 205, 211, 500, and 503 have been transitioned to the new "gross contract" system, with plans to integrate additional routes in the near future.
Under the new "gross contract" model, carriers are compensated based on the distance traveled and the quality of service provided, rather than solely on passenger revenue. Key performance indicators, including the number of buses, movement intervals, and total distance, are predetermined. This ensures that buses continue to operate according to schedule even during off-peak hours, such as late evenings, thereby providing more reliable and predictable public transport for passengers. Furthermore, this system prevents carriers from prioritizing only high-profit routes, facilitating improved service levels on suburban and less profitable lines.
The "gross contract" model is a widely adopted international standard designed to elevate public transport quality. In Azerbaijan, this transition allows for systematic oversight of carrier operations. Through specialized software, authorities can monitor service quality and enforce financial penalties or other measures if established standards are violated. This shift is expected to enhance the financial stability of carriers, enabling long-term planning, the renewal of bus fleets with eco-friendly vehicles, and increased investment in technical maintenance and overall service quality.
