WMWP Act Legal Advises KMG on New Legal Structure for Public Transport in Klagenfurt

WMWP Act Legal Advises KMG on New Legal Structure for Public Transport in Klagenfurt

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WMWP Act Legal Austria has advised KMG, a subsidiary of Stadtwerke Klagenfurt AG and Klagenfurt am Worthersee, on the restructuring of the public transport in Klagenfurt am Worthersee.

Stadtwerke Klagenfurt AG (STW) is a public energy and water supply company in the Austrian city of Klagenfurt am Worthersee. The company offers services and products in the areas of public bus transport, district heating, natural gas, water, electricity, outdoor advertising, and leisure. Klagenfurt am Worthersee and STW are the two shareholders of KMG.

According to Act Legal, in order to comply with the requirements of EU law, it was necessary to give bus system of Klagenfurt am Worthersee a completely new legal structure. Accordingly, on the basis of a framework agreement that was concluded with STW following corresponding resolutions by the bodies of Klagenfurt am Worthersee, the entire mobility operation was spun off into new and separate KMG Klagenfurt Mobil GmbH. The city then acquired a stake in that company. 

WMWP Act Legal Partner Martin Wiedenbauer commented: “The exciting challenge was to create an in-house construction that would, on the one hand, meet the complex requirements of state aid and public procurement law and at the same time form a corporate framework that best supports the city’s future goals, the necessary financial flows, and a tax-optimized solution.” 

Starting in December, 2019, KMG will handle the entire scheduled bus service of Klagenfurt am Worthersee under the new legal structure. In addition, a new mobile application and an annual ticket for EUR 365 will be introduced. 

The WMWP Act legal team was led by Partner Martin Wiedenbauer and included Associates Gregor Sandner, Tanja Verbunkic, and Emine Tas.