6Article 4 of Regulation No 1370/2007, concerning the ‘Mandatory content of public service contracts and general rules’, provides in paragraphs 3 and 4:3. The duration of public service contracts shall be limited and shall not exceed 10 years for coach and bus services ...4. If necessary, having regard to the conditions of asset depreciation, the duration of the public service contract may be extended by a maximum of 50% if the public service operator provides assets which are both significant in relation to the overall assets needed to carry out the passenger transport services covered by the public service contract and linked predominantly to the passenger transport services covered by the contract.If justified by costs deriving from the particular geographical situation, the duration of public service contracts specified in paragraph 3 in the outermost regions may be extended by a maximum of 50%.If justified by the amortisation of capital in relation to exceptional infrastructure, rolling stock or vehicular investment and if the public service contract is awarded in a fair competitive tendering procedure, a public service contract may have a longer duration. In order to ensure transparency in this case, the competent authority shall transmit to the Commission within one year of the conclusion of the contract the public service contract and elements justifying its longer duration.’
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