Institutional Requirements
Form, legal basis and functions
The institutional requirements for an unregulated system with quality control are minimal. Since there is no granting of any route contracts or any fare setting obligations on government, the authority needs very few powers.

The only power it needs is that of imposing quality controls on the vehicles providing public transport service. These would be enforced when the vehicles are first licensed and subsequently maintained through regular vehicle inspections. These quality controls are in addition to regular construction and use regulations governing safety and roadworthiness.

Staffing and expertise requirements
By opting for a deregulated system, the authority is essentially washing its hands of any responsibility for the provision of bus service in the city — unless the network provided under the deregulated system can be supplemented by route-by-route contracts for additional services deemed socially essential.

Assuming this is not the case, the main function of the authority is to set the vehicle quality criteria, to certify new vehicles as meeting these criteria and for inspection during the life of the vehicle to ensure the standards are being maintained. The authority may also be given the responsibility for first line control over driver behavior but this may be considered a police matter.

An overall staffing level is hard to determine but the staff numbers should be small and in fact there is probably no need for a separate authority. Inspection of vehicles can be carried out by those who inspect all other vehicles and control of drivers and driving behavior can be dealt with by the police.

There remains, however, a need for strategic long-term planning to be carried out to provide inputs to policy objectives and this role may fall to a transport authority.