Clause 4

In addition to the licence fee payable under section 13(3), a charge shall be payable by every person who is granted a licence on or after the date of commencement of section 4 of the Rapid Transit Systems (Amendment) Act 2010, which shall be such amount as is determined by the Authority and specified in the licence, after taking into account —

the relative viability of operating and maintaining that rapid transit system in the network of rapid transit systems;

the long-term operational and maintenance needs of the railway network and the long-term sustainability of each rapid transit system comprised in the network of rapid transit systems; and

the benefits and burdens that the operation and maintenance of that rapid transit system is likely to bring to and impose on the network of rapid transit systems.(2) A person who is to be granted a licence on or after the date of commencement of section 4 of the Rapid Transit Systems (Amendment) Act 2010 shall ordinarily be selected by the Authority from among those who submit tenders in response to an invitation to tender under this section for the right to operate (or to secure that a wholly-owned subsidiary thereof operates) a rapid transit system under that licence.(3) Any such invitation to tender must specify that an applicant who tenders for a licence must state the amount (by reference to quantity or method or otherwise) that the applicant (or a wholly-owned subsidiary thereof) is willing to pay for the grant of a licence (referred to in this Part as a cash-bid), in addition to the charge determined under subsection (1); and that cash-bid shall be payable, together with the charge determined under subsection (1), by the applicant or its wholly-owned subsidiary if the applicant or its wholly-owned subsidiary, as the case may be, is granted a licence.”.