The focus of this discussion paper is on institutional arrangements for the provision of public transport bus services, including the introduction of private capital in bus operations, the value of competitive tendering mechanisms as a determining factor in selecting suppliers, and the role of regulation. The purpose of this paper is to assist Chinese municipalities by describing the experience of other countries that have attempted to implement similar reforms, which may be considered relevant to China. The goal of this paper is to assist interested municipalities, the Ministry of Construction, and other relevant Chinese authorities to: 1) identify models of regulation and competition for the urban bus industry, based on the experience of Chinese and international practices, which are best, suited for the current and projected future of the urban bus industry in China
and 2) provide guidance for municipalities that are considering restructuring their bus industries.