Innovative E-bus Procurement Models: Policy Brief

2026 Download available: EN

This policy brief distills the regulatory and funding actions required to enable bankable and scalable electric bus procurement in the South African cities of Cape Town and Johannesburg. While the Public Transport Network Grant (PTNG) remains a critical funding pillar , its upcoming winding-down phase sharpens the need for alternative procurement routes that ease upfront fiscal pressure. The study highlights that operator-acquired procurement is constrained by short National Land Transport Act (NLTA) contract terms and high private borrowing costs. Consequently, it recommends an immediate practical hierarchy prioritizing city-owned procurement or direct Full Maintenance Leases (FML). Finally, the document outlines a staged 12-to-18-month implementation pathway focused on restructuring national grant frameworks, aggregating demand through transversal procurement, and mobilizing blended finance.

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