Read the passage given below:
To alleviate chronic municipal budget deficits and improve urban public bus transit efficiency, state transit authorities have proposed privatizing route operations while keeping fare structures strictly regulated under public price caps. Under this public-private partnership model, private operators will be compensated based on distance traveled and adherence to schedule benchmarks rather than passenger ticket revenues collected. Advocates contend that this arrangement will eliminate passenger demand risk for private operators, thereby incentivizing private investment in fleet modernization and zero-emission electric buses. Consequently, urban and suburban commuters are projected to experience higher service frequencies and significantly reduced wait times. However, municipal transport authorities must retain strict monitoring mechanisms, as failure to oversee operational adherence could lead to service degradation. Furthermore, dedicated municipal transport funds will be routed directly to meet contractually guaranteed kilometer payments, ensuring long-term fiscal predictability for service providers.
Evaluate the truth value of the following statement based on the passage:
Statement: The author's argument that distance-based compensation will incentivize private operators to invest in fleet modernization rests on the underlying assumption that the guaranteed kilometer payments will yield sufficient revenue to cover the upfront capital acquisition costs of new vehicles.
Cevap: Cevap